BEIJING, November 27, 2025 – In a strategic move to strengthen China’s natural gas infrastructure, PetroChina Co Ltd (601857.SS) and the state-owned China Oil and Gas Pipeline Network Corporation (PipeChina) have jointly established two new gas storage companies in China, according to the Tianyancha company information database.

The newly registered entities, Liaohe Gas Storage in northeast China and Xinjiang Gas Storage in northwest China, were officially incorporated on Monday and Thursday of this week, respectively. The move represents a major step in the ongoing expansion of China’s natural gas supply and storage capabilities, highlighting the country’s commitment to energy security and industrial development.

Investment and Operations

The two companies were created with a combined registered capital exceeding 25.6 billion yuan ($3.62 billion). According to official filings:

• Liaohe Gas Storage will focus on gas storage operations, including loading and unloading activities.
• Xinjiang Gas Storage will specialize in natural gas production and supply.

This strategic development allows PetroChina and PipeChina to strengthen their positions in the natural gas market, enhance operational stability, and secure long-term energy resources.

PetroChina’s Strategic Acquisitions

PetroChina had proposed acquiring these gas storage entities in August 2025, as part of a larger transaction including Xiangguosi Gas Storage in southwest China. The acquisition, facilitated through PetroChina’s investment arm, involves a total deal value of 40.02 billion yuan from its controlling shareholder, the state-owned China National Petroleum Corporation (CNPC).

The newly added storage facilities are expected to increase PetroChina’s working gas storage capacity by 10.97 billion cubic meters, further expanding its natural gas industrial chain. This expansion is critical for ensuring stable gas supplies amid growing domestic demand and fluctuating global energy markets.

Implications for China’s Energy Sector

China’s government has been emphasizing energy security and diversification of gas supply routes. The establishment of Liaohe Gas Storage and Xinjiang Gas Storage underlines the importance of enhancing infrastructure resilience and increasing storage capacities across different regions of the country.

Experts suggest that these investments by PetroChina and PipeChina will not only strengthen domestic natural gas supply chains but also improve the companies’ competitive positions in regional and global energy markets.

The development comes amid broader initiatives by China to modernize its energy sector, reduce dependence on imports, and ensure a steady supply of natural gas for both industrial and residential consumers.

Looking Ahead

As China’s energy demand continues to rise, strategic expansions like these are likely to play a pivotal role in the country’s long-term energy strategy. By combining PetroChina’s operational expertise with PipeChina’s technical capabilities, the new gas storage companies are positioned to become critical assets in China’s natural gas infrastructure network.