OREANDA-NEWS. May 28, 2014. State owned energy giant PetroChina is moving ahead with its latest round of internal reforms.

This is all part of the country’s ongoing restructuring of state owned enterprises.

PetroChina announced that it will set up a wholly-owned subsidiary with funding from the private sector. The subsidiary --Petro China Eastern Pipeline-- will be responsible for the 13,000 kilometer long natural gas pipelines from northwest China’s Xinjiang Uygur Autonomous Region to the east of the country.

The project is commonly called the West-East Pipeline project. --China’s SOE reform efforts include attracting more private financing into the state sector, especially companies in sectors key to the economy. The new subsidiary will be based in Shanghai with initial funding of 10 billion yuan or about 1.6 billion U.S. dollars.