Research On PetroChina's Acquisition Of Local Natural Gas Companies

This thesis mainly concentrates on analyzing the overall prospect of Jinzhou Natural Gas Co. after the acquisition by Liaohe Oilfield, and the feasibility of the project investment, aiming to provide a decision-making evidence for relevant investment of Liaohe Oilfield.In early 2008, along with the initiation of the second pipeline project for the transmition of natural gas from west to east of China, PetroChina started a campaign to the natural gas market taking the advantages of its controlled resource. Liaohe Oilfield was authorized to develop the unban gas operations within Liaoning Province. As a first step to integrate the natural gas market in the Northeast of China, Liaohe Oilfield signed relevant framework agreements with Jinzhou Natural Gas Co. As well as Panjin Natural Gas Co, and negotiated with some other key cities, such as Shenyang and Dalian city. The construction of Qin-Shen pipeline acts as a threshold for the PetroChina to enter the market of Northern-east of China. In 2009, the acquisition of Jinzhou Natural Gas Co was the top priority for Liaohe Oilfield.On the basis of analysing the data of Jinzhou Natural Gas Co, the engineering design for Jinzhou City was put forward after a survey of the current status of the natural gas applications in Jinzhou urban central erea, the Xinqu District near the seaside of Jinzhou, Linhai City, Beizhen City, Heishan City, and Yi County City. Investment analysis of the city gas stations, solutions of gas supplying, pressure mechnism, high-pressure B pipes and medium-pressure pipelines were also thoroghly studied. The economic benefits were evaluated according to the method of rational and preferential comparison and the market scale of income, investment and profits. A conclusion was drawn in accordance with the comprehensive analysis—it is beneficailly feasible for for Liaohe Oilfield to acquire the Jinzhou Natural gas Co.It is one of the strategic operations for PetroChina that Liaohe Oilfield invests and purchases Jinzhou Natrue Gas Co., which will definitely help its construction as a comprehensive international energy enterprise, the development of the industry chain related to natural gas, and the refinement of the coordinated and balanced development of this business. It will also add positive impact on the improvement of its influence, and thus to smoothly promote the relationship between Liaohe Oilfield and the local government, to ease employment pressure, enlarge the overall economy scale, and to create more profits.The research outcome has been approved by senior leaders of PetroChina. Liaohe Oilfield is therefore engaged in the investing and purchasing Jinzhou Nature Gas Co. on the basis of this research result.