BEIJING, May 12 (Xinhua) — PetroChina, China’s top oil and gas producer, announced on Monday it will use part of its pipeline business to form a new company, which will then be sold as part of its mixed-ownership drive.

The new company will be based on assets and liabilities concerning the west-east gas pipeline managed by its pipeline subsidiary and all shares will be transferred after its establishment, according to a PetroChina announcement filed with the Shanghai Stock Exchange.

Total assets involved are estimated at over 82 billion yuan (13 billion U.S. dollars), with total liabilities of around 53 billion yuan and net assets at 29 billion yuan, the announcement said.

PetroChina said the move will improve its distribution of resources and financing structure, as well as boost its mixed-ownership progress.

The new firm, which could possibly be called East Pipeline Company, will be established in Shanghai with registered capital at 10 billion yuan.

No specific timetable has been released yet.

PetroChina is a subsidiary of the country’s gas and oil giant China National Petroleum Corporation.