Sinopec Issues Bonds to Fund Gas Pipeline

China Petroleum and Chemical Corp or Sinopec started issuing bonds at par value of RMB 100, totaling RMB 20 billion, exclusively to domestic institutional investors in order to fund the 2,800-kilometer natural gas pipeline from Sichuan province to Shanghai.

Sinopec also plans to issue RMB 30 billion convertible bonds, which will entitle investors to have a stock option in the company.

The project consists of development of the Puguang gas field in Southwest China's Sichuan province, one of China’s Top 5 gas fields, with proven reserves of 356 billion cubic meters by the end of last year. The project is expected to meet the surging demand in Shanghai, which is taken as a major market for China’s oil and gas giants.