(Adds valuation and analyst quote)
BEIJING Dec 12 China's Sinopec
has sold a 50 percent stake in its Sichuan-East China
gas pipeline to China Life Insurance and SDIC's transportation
business in a deal that values the asset at 45.6 billion yuan
A Sinopec statement on Monday said that China Life Insurance
paid 20 billion yuan for a 43.8 percent stake while SDIC's
transportation unit paid 2.8 billion yuan for 6 percent.
"The asset is fairly valued and the deal is a win-win for
both parties" Nomura analyst Gordon Kwan said. "China Life is
looking at a good long-term stable investment."
Sinopec said the pipeline generated a first-half net profit
of 1.17 billlion yuan on revenue of 2.6 billion yuan.
The sale comes four months after the country's
second-largest oil and gas group announced plans to divest half
of its share of the pipeline in a move spurred by Beijing's
reform push to boost efficiency and increase infrastructure
investment in cleaner fuels.
Sinopec has said that the proceeds will be used to expand
the 2,200 km (1,370 miles) pipeline and build gas storage
($1 = 6.9115 Chinese yuan renminbi)
(Reporting by Meng Meng and Aizhu Chen; Writing by Josephine
Mason; Editing by Mark Potter and David Goodman)