BEIJING, Dec 12 — China’s Sinopec has sold a 50 per cent 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 (RM29.1 billion).

A Sinopec statement today said that China Life Insurance paid 20 billion yuan for a 43.8 per cent stake while SDIC’s transportation unit paid 2.8 billion yuan for 6 per cent.

"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 2,200km pipeline and build gas storage facilities. — Reuters