Sinopec buys 15% stake in Petronas Canada LNG
Sinopec, as the Chinese company is known, will get 1.8 million tpy of LNG for 20 years, about 15% of the Canadian terminal’s output, Petronas said in a recent statement.
By WINNIE ZHU
Corp. agreed to buy
a 15% stake in gas reserves and a proposed liquefied natural
gas (LNG) facility in British Columbia from Petroliam
Nasional Bhd. for an undisclosed amount.
Sinopec, as the Chinese company is known, will get 1.8
million tpy of LNG for 20 years, about 15% of the
terminals output, Petronas said in a statement. Sinopec
also agreed to buy 3 million tpy of LNG for 20 years from
Petronas, making it one of the Malaysian state-owned
companys largest buyers of the fuel.
Petronas, which acquired Progress Energy Canada in 2012, will
hold 62% of the integrated project
after the sale. The
company has previously announced the sale of stakes in the
terminal to India
n Oil, Brunei National
Petroleum and Japan Petroleum Exploration.
The acquisition gives the Chinese oil company access to at
least 8.35 trillion cubic feet of gas reserves in British
Columbia fields controlled by Progress Energy Canada. The
Kuala Lumpur-based company aims to reduce its share in
Pacific NorthWest LNG, which runs the gas-export facility, to
as low as 50% by selling stakes to Asian gas buyers, the
units President Greg Kist said in November.
The LNG export project
on Canadias west
coast, with an estimated price tag of C$9 billion ($8.2
billion) to C$11 billion, will produce as much as 19.68
million tpy of LNG for 25 years starting in 2018, according
to an application to Canadas National Energy Board.