On December 19, Shanghai-based Chinese steelmaker Baoshan Iron and Steel Co. (Baosteel), a subsidiary of Baosteel Group, announced that it plans to invest RMB 8 billion ($1.3 billion) in the third phase of China's West-East Natural Gas Transmission Project.
The construction of the third phase of the West-East Natural Gas Pipeline Project, which will cost an investment of RMB 116 billion ($18.4 billion), is expected to be completed by 2015. The pipeline is expected to transport 30 billion cubic meters of natural gas annually from northwestern to southeastern China. Construction work on the project began on October 16 this year.
In May of the current year, PetroChina Co., Baosteel Group, China's National Social Security Fund and the Urban Infrastructure Industry Investment Fund signed an agreement to invest RMB 62.5 billion ($9.9 billion) in a joint venture for the construction of the third phase of the project. Accordingly, PetroChina with a total investment of RMB 32.5 billion ($5.2 billion) holds a 52 percent stake, while Baosteel Group, the National Social Security Fund and the Urban Infrastructure Industry Investment Fund each hold 16 percent stakes.
Accordingly, Baosteel Co., with an investment of RMB 8 billion ($1.3 billion), will hold 12.8 percent of the joint venture, while another Baosteel Group subsidiary Huabao Investment Co will invest RMB 2 billion ($320 million) and hold a 3.2 percent stake in the joint venture.