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Sinopec, Petronas agree deal on LNG project

(Xinhua) Updated: 2014-05-01 10:22

Sinopec, Petronas agree deal on LNG project

Sinopec, Petronas agree deal on LNG project

BEIJING -- Sinopec and its partner China Huadian Corporation have reached a deal to buy liquified natural gas (LNG) from a Canada-based LNG project operated by Petronas of Malaysia, Sinopec announced on Wednesday.

Sinopec and its Chinese partner will acquire a 15-percent stake in the Pacific Northwest LNG Project (PNW LNG), which will allow them 1.8 million cubic meters of LNG annually for 20 years, the company said.

Sinopec will have a 10-percent stake and China Huaidan Corporation will have 5 percent, the company said.

In addition, Sinopec, through its affiliate, has signed a binding Heads of Agreement with Petronas for the purchase of 3 million cubic meters of LNG for 20 years, Sinopec said.

The transactions are yet to be approved by authorities, the firm said.

These deals are expected to secure 4.2 million cubic meters of LNG per year for Sinopec, which will help the company boost its gas market share in China as well as its clean energy supply capacity, the company said.

PNW LNG is located on Canada's West Coast near Prince Rupert, British Columbia, with natural gas sourced from Progress Energy Canada Ltd's North Montney assets. Petronas of Malaysia is the project operator and majority owner of Progress Energy and PNW LNG projects.

 

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