PetroChina newly established a holding joint venture to acquire gas storage facilities from its parent company

PETROCHINA Company Limited (00857.HK) announced that it has signed a formal contract to establish three new holding joint ventures through its wholly-owned subsidiary Taihu Investment, investing RMB 16.042 billion to acquire all equity interests in the Xinjiang Gas Storage, Xiangguosi Gas Storage, and Liaohe Gas Storage from its controlling shareholder, China National Petroleum Corporation, for a total consideration of RMB 40.016 billion, primarily funded by cash contributions from the shareholders of the newly established joint ventures.

Upon completion, Taihu Investment will hold 51% of the Xinjiang Gas Storage, 51% of the Xiangguosi Gas Storage, and 50.49% of the Liaohe Gas Storage.

Gas storage is an important link and connection in the production, transportation, storage, and sales of natural gas. It serves as a tool for peak shaving and valley filling in natural gas sales and for balancing production in gas fields. This acquisition will add 10.97 billion cubic meters of working gas capacity to the storage facilities, which is beneficial for forming gas storage peak-shaving capabilities that match the company's natural gas sales, maximizing the overall benefits of the natural gas industry chain