National Business Daily reported that PetroChina will change the way it manages its domestic pipeline business and will set up five companies to mangage the business on a district basis.

According to unnamed analysts, the key to improving its natural gas business is to increase the length of its pipelines which will improve efficiency and optimize the allocation of resources. The five companies to be established include; Southwest Pipeline, West-East Gas Transportation, West Pipeline Management, Beijing Natural Gas Pipeline and Southwest Oilfield Gas.

In the meantime, PetroChina will improve natural gas sales and the management of its downstream businesses by setting up a subsidiary in each province.

PetroChina plans to build 54,000 kilometers of pipelines during the next five years, double that built in the last five years. Of the total to be built, natural gas pipelines will account for 30,000 kilometers.

Mr Ren Haoning an analyst at CIConsulting, the original method of management could not meet the demands posed by the rapid growth of the natural gas business as coordination was difficult.

PetroChina produced 63.5 billion cubic meters of natural gas and sold 63 billion cubic meters in 2010 accounting for 70% of the domestic market.

(Sourced from National Business Daily)