By Yifan Wang

China Petroleum & Chemical Corp. has signed agreements to transfer pipeline assets to a state-owned national pipeline company in exchange for cash and equity worth a total of 119.43 billion yuan ($17.05 billion).

The Chinese refiner will transfer stakes in three oil and natural gas pipeline operators to China Oil & Gas Pipeline Network Corp., a state-owned company set up in late 2019 in efforts to establish a unified national pipeline network in China.

After the stake transfer, Sinopec will subscribe for CNY47.11 billion of the national company's registered capital.

Sinopec subsidiary Sinopec Natural Gas Ltd. will also transfer pipeline assets to the state-owned network operator for both cash and equity. After the planned transaction, the unit will subscribe for CNY22.89 billion of the national pipeline company's registered capital and will receive CNY18.62 billion in cash.

Another unit, Sinopec Marketing Co., will sell several refined-oil pipelines and other assets for consideration of CNY30.81 billion, Sinopec added.

The proposed deals come after Sinopec's Hong Kong-listed unit, Sinopec Kantons Holdings Ltd., said Tuesday that it will dispose of a natural-gas pipeline for CNY3.22 billion to the state-owned company.

Sinopec said the proposed disposals will allow it to bring down operational spending on the relevant pipelines and to centralize resources on core businesses. 



  Write to Yifan Wang at yifan.wang@wsj.com