CNPC inaugurates principles for opening pipelines

The largest oil and gas producer in China, China National Petroleum Corporation (CNPC), has established principles for opening up pipelines to other companies.

Natural gas and pipeline subsidiaries of CNPC will administer opening the group’s pipeline network to other companies where there is surplus capacity. This is according to a report from China Securities Journal, citing an unnamed source from CNPC.

Capacity of the pipelines will be contracted to other companies on a first come, first serve basis. Both signing parties will determine the types of oil to be carried, the report said.

CNPC will report to the National Energy Administration about its pipelines and pipeline contracts. The NEA will then release the information to the public.

Aside from making the pipeline system more efficient, this move will benefit companies looking to profit from the pipeline network.

The CNPC first revealed trial measures for opening its pipelines in June 2014.

August 8, 2014