The assets to be acquired include a crude oil pipeline and a refined oil pipeline, each 1,858 km long, running from Urumqi in the west to the Lanzhou in Gansu, in the east.

The crude and refined oil pipelines have designed transmission capacities of 20 MMt/a and 10 MMt/a respectively.

PetroChina said in a statement “The acquisition is beneficial to the company in terms of the implementation of professional management of pipeline operation, thereby materialising the company’s competitiveness on technological management and pipeline network in western China.

“It will also strengthen the company’s capabilities in pipeline transmission, enabling the company to achieve optimal distribution and operational efficiency of the pipeline resources,” the company said.