Baosteel said that it would partner its sister company Huabao Investment Co Ltd to invest in the construction of the third West−East natural gas pipeline.

The board of Baosteel Co. has agreed to invest RMB 8bn (US$1.25bn) in the major gas transmission project taking a 12.8 share while Huabao committed RMB 2bn ($314M), a 3.2% shares.

The return rate of the investment would be targeted at 10% with investment recovery period of 11 years, said Baosteel Co. in a statement.