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)