On August 26,2025,PetroChina(601857.SS)announced a plan to acquire three natural gas storage facilities from its majority shareholder,China National Petroleum Corporation,in a transaction valued at 40.02 billion Chinese yuan($5.59 billion).The facilities,located in Xinjiang,Xiangguosi,and Liaohe,will add 10.97 billion cubic meters of working gas storage capacity to PetroChina’s operations.

The acquisition aligns with PetroChina’s efforts to strengthen its natural gas supply chain and support China’s growing demand for cleaner energy sources.Natural gas,a lower-emission fuel,is increasingly vital as the country works to enhance energy security and improve air quality by reducing coal use.

“This will enhance adjustment efficiency and maximize the overall benefits of the natural gas industry chain,”PetroChina stated in a filing with the stock exchange.

On the same day,PetroChina reported a 5.4%decrease in net income for the first half of 2025 compared to the previous year.Despite this,its natural gas segment performed strongly,generating 18.6 billion yuan in earnings,an improvement over the prior year.

Looking ahead,PetroChina anticipates that oil demand in China may face challenges from alternative energy sources.However,the company expects natural gas consumption to rebound and expand significantly,driven by the nation’s focus on sustainable energy solutions.The acquisition of these storage facilities positions PetroChina to meet this rising demand efficiently.

This move reflects China’s broader strategy to prioritize natural gas as part of its energy transition,supporting both economic stability and environmental goals.PetroChina’s expanded storage capacity will help ensure a stable supply,contributing to the country’s efforts to balance energy needs with sustainability.