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Two big state-owned enterprises join hands, Shaanxi Gas may be shared by Yanchang Petroleum
[2019-07-19]
 
On June 25, Shaanxi Provincial Natural Gas Co., Ltd. announced that according to the requirements of Shaanxi SASAC, the largest shareholder of Shaanxi Gas Group Co., Ltd(hereinafter referred to as "Shaanxi Gas") would be changed to Shaanxi Yanchang Petroleum (Group) Co., Ltd(hereinafter referred to as "Yanchang Petroleum"). It is reported that Yanchang Petroleum will increase capital and share of Shaanxi Gas as a strategic investor. After capital increase and share increase, the proportion of Yanchang Petroleum equity may exceed 51%.
 
Shaanxi Gas and Yanchang Petroleum are both large-scale energy enterprises under Shaanxi SASAC. The combination of the two enterprises will straighten out the natural gas market pattern of Shaanxi Province. At the same time, Yanchang Petroleum will become another energy giant in China to open up the whole natural gas industry chain after PetroChina, which will be conducive to the early realization of the goal of "gasification of Shaanxi".
 
By the end of 2018, the annual gas production of Yanchang Petroleum Group Exploration Company has reached about 3.3 billion cubic meters. It is estimated that the gas production will be close to 5 billion cubic meters in 2019. Yanchang Petroleum takes over Shaanxi Gas means having pipelines and even expanding downstream sales, which will clear away "obstacles" for Yanchang Petroleum to develop the natural gas industry vigorously. It is not far away that the annual output of Yanchang Oil and Gas will exceed 10 billion cubic meters in the future.
 
 
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