Foreign investors will be allowed to control stakes in the construction and operation of the proposed giant west-to-east gas pipeline, announced an industry official yesterday in Beijing.
Overseas investment will also be allowed in urban gas pipeline networks, said Zhang Guobao, vice-minister of the State Development Planning Commission.
"These are two significant changes in China's current policy framework," Zhang stressed. According to existing State regulations, the Chinese side should hold a controlling stake in the construction and operation of natural gas pipelines. Foreign investors are currently prohibited from investing in urban gas pipeline projects.
Zhang said the central government is determined to have foreign investment in all aspects of the colossal project. The west-east gas transmitting project has three parts: pumping natural gas in Xinjiang's Tarim Basin and in Ordos Basin, laying a 4,167-kilometre pipe from Xinjiang to Shanghai, and selling gas to consumers.
Zhang said foreigners have a number of investment channels open to them, including setting up joint ventures, co-operative firms or buying stocks in PetroChina. Listed in Hong Kong and New York three months ago, PetroChina is the major Chinese operator of the project.
The project's total investment is expected to be 120 billion yuan (US$14.5 billion).
(People's Daily July 13, 2000)
