PETROCHINA (00857) Subsidiary to Acquire Full Ownership of Xinjiang, Xiangguosi, and Liaohe Gas Storage Facilities

Stock News12-04 19:40

PETROCHINA (00857) announced that its board has approved the acquisition of full ownership in three gas storage facilities—Xinjiang Gas Storage, Xiangguosi Gas Storage, and Liaohe Gas Storage—from their respective transferors. The acquiring parties, which are non-wholly owned subsidiaries of PETROCHINA (Xinjiang Gas Storage, Xiangguosi Gas Storage, and Liaoning Gas Storage), signed acquisition agreements with the transferors on December 4, 2025.

Upon completion, the target companies will become indirect non-wholly owned subsidiaries of PETROCHINA, and their financial results will be consolidated into the company's statements. The transaction involves Taihu Investment, a wholly owned subsidiary of PETROCHINA, establishing three new joint ventures with a combined cash investment of RMB 16.042 billion. These joint ventures—Xinjiang Gas Storage, Xiangguosi Gas Storage, and Liaoning Gas Storage—will serve as the acquiring entities for the respective gas storage facilities, with a total consideration of RMB 40.016 billion (excluding taxes).

Funding will primarily come from shareholder contributions, with the remainder to be covered by loans to the newly established joint ventures. Post-acquisition, ownership structures will be as follows: - Xinjiang Gas Storage will be wholly owned by Xinjiang Gas Storage Co., with Taihu Investment holding 51% and Pipeline Energy Storage holding 49%. - Xiangguosi Gas Storage will be wholly owned by Xiangguosi Gas Storage Co., with Taihu Investment holding 51% and Pipeline Energy Storage holding 49%. - Liaohe Gas Storage will be wholly owned by Liaoning Gas Storage Co., with Taihu Investment holding 50.49%, Pipeline Energy Storage holding 48.51%, and Panjin State-owned Capital Investment & Operation Group holding 1%.

The acquired companies will focus on gas injection and extraction operations, supporting PETROCHINA’s natural gas supply chain stability and high-quality development. Gas storage facilities play a critical role in balancing supply-demand fluctuations, enabling peak shaving and valley filling for gas sales while optimizing production efficiency. The acquisition adds 10.97 billion cubic meters of working gas capacity, enhancing PETROCHINA’s storage and peak-shaving capabilities to maximize overall industry benefits.

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