Asia Bizz: China’s petroleum giant, PetroChina has agreed that it will be selling of its Gas Pipeline stake for $2.9 billion. PetroChina will be selling this stake to Kunlun Energy Co., who will be helping the Hong Kong based company to make fuel distribution is core business. As the statement issued by the Hong Kong Stock Exchange, Beijing Gas Group Co owns 40% stake of the company.
Kunlun Energy Co’s, shares rose by more than 3.2%, a move that will benefiting the company on a large scale. Kunlun will be one of the biggest fuel distribution players in China, especially in coming future, because of the steady increase in the demand of fuel in the country.
In the year 2008, PetroChina had agreed to buy the majority stake of Kunlun energy, and since then the company’s stock has actually quadrupled. One of the official statements that the company has provided, it says that PetroChina will be concentrating more on gas and fuel exploration and distribution, Kunlun will the major distributor.