Oil giants Royal/Dutch Shell, ExxonMobil and Russia's Gazprom have
agreed to take 15 percent stakes each in China's US$5.6 billion
natural gas pipeline project, clearing away the final obstacle
blocking the kick-off of the repeatedly delayed project.
The firms agreed to equally split the 45 percent of shares open to
foreign investors in the project after signing a memorandum of
understandings on Saturday morning, the companies' officials
said.
"This is the first time that ExxonMobil has announced its interest
in participating in the project," said an ExxonMobil
spokeswoman.
The project, the second largest in the country since the founding
of the People's Republic of China in 1949, following the US$22
billion Three Gorges Dam project, will lay a 3,900-kilometre
pipeline to transport natural gas from the Xinjiang Uygur
Autonomous Region in the northwest of the country to the coastal
city of Shanghai in the east.
Shell's spokeswoman Catherine Min said the company is to offer 1
percent of its 15 percent stake in the joint venture to its partner
Hong Kong China Gas.
Earlier in December, a Shell-led consortium, including Gazprom, the
world's largest natural gas producer, Russia's pipeline constructor
Stroytransgaz and Hong Kong China Gas, agreed to take a 45 percent
stake in the project, which includes gas field development,
pipeline construction and gas marketing. PetroChina, the nation's
largest gas producer, holds 50 percent in the project while rival
Sinopec, the country's second largest gas producer, holds the
remaining 5 percent.
The pipeline is a centerpiece of the Chinese Government's ambitious
plan to boost the economy of its vast western regions.
(China
Daily July 2, 2002)