BEIJING, Aug 5 (Reuters) - A Sinopec Corp subsidiary agreed to pay compensation of 29.8 million yuan ($4.5 million) for damages caused by an explosion last month on a section of the Sichuan-East China natural gas pipeline, said state media Xinhua News Agency.
The Sinopec Sichuan-East Natural Gas Pipeline Company, affiliated with China's biggest refiner, said it would complete the payment by Friday to the affected township located in central China's Hubei province, Xinhua reported.
The accident killed two people, injured nine, and also destroyed the homes of 80 villagers, Xinhua said.
Sinopec had to shut down the damaged pipeline until Saturday a week ago, but supply to industrial users in at least five provinces was cut to 7 million cubic metres per day, from 24 million per day.
The country's second-biggest oil and gas company said on Wednesday it would sell a stake of 50 percent in the Sichuan-East China pipeline to raise funds for expansion of the pipeline and the building of gas storage facilities.
The Sichuan-East China pipeline project is able to carry about 12 billion cubic metres of natural gas a year, enough for about 6 percent of the country's total gas consumption.
(Reporting By Kathy Chen; Editing by Tom Hogue)
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