• 55 mins Russia, Saudis Team Up To Boost Fracking Tech
  • 7 hours Conflicting News Spurs Doubt On Aramco IPO
  • 8 hours Exxon Starts Production At New Refinery In Texas
  • 9 hours Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 1 day Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 1 day Oil Gains Spur Growth In Canada’s Oil Cities
  • 1 day China To Take 5% Of Rosneft’s Output In New Deal
  • 1 day UAE Oil Giant Seeks Partnership For Possible IPO
  • 1 day Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 1 day VW Fails To Secure Critical Commodity For EVs
  • 1 day Enbridge Pipeline Expansion Finally Approved
  • 1 day Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 1 day OPEC Oil Deal Compliance Falls To 86%
  • 2 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 2 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 2 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 2 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 2 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 2 days Aramco Says No Plans To Shelve IPO
  • 5 days Trump Passes Iran Nuclear Deal Back to Congress
  • 5 days Texas Shutters More Coal-Fired Plants
  • 5 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 5 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 5 days Chevron Quits Australian Deepwater Oil Exploration
  • 6 days Europe Braces For End Of Iran Nuclear Deal
  • 6 days Renewable Energy Startup Powering Native American Protest Camp
  • 6 days Husky Energy Set To Restart Pipeline
  • 6 days Russia, Morocco Sign String Of Energy And Military Deals
  • 6 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 6 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 6 days India Needs Help To Boost Oil Production
  • 6 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 6 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 6 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 6 days District Judge Rules Dakota Access Can Continue Operating
  • 7 days Surprise Oil Inventory Build Shocks Markets
  • 7 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 7 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 7 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 7 days Oil M&A Deals Set To Rise
Alt Text

The U.S. LNG Boom Could Be About To Stall

United States LNG has seen…

Alt Text

The Natural Gas Market Is Set To Boom

With the new lower-for-longer oil…

China’s Sinopec Eyes Stake in Canadian LNG Project

China's state-owned Sinopec is said to be in talks with US-based Apache Corporation to acquire a stake in a $15-billion natural gas export project in British Columbia.  

Chevron and Apache each currently own a 50% stake in the Kitimat liquefied natural gas (LNG) project to export natural gas from British Columbia to Asia, and Sinopec’s potential acquisition of a stake in this could help offset some of the costs.

The Kitimat LNG project includes an LNG processing plant, pipelines and 644,000 acres of untapped shale resources on the coast of northern British Columbia. The project is expected to begin exporting natural gas from the Horn River and Liard fields in British Columbia by 2017, and has a license to export 10 million tons of LNG annually.

Related article: China Increases Purchases of LNG on Spot Market

Apache will operate the project’s upstream assets, while Chevron will control the downstream. Apache earlier this year paid $150 million to raise its stake in the project from 40% to 50%.

Sinopec’s potential foray into this project is said to be fortuitous for Chevron and Apache, which are struggling with soaring project costs that are now over $15 billion—or $3 billion more than initial estimates.

Beyond contributing to project costs, Sinopec’s inclusion in Kitimat LNG could also provide another Asian buyer for British Columbian natural gas.

China is seeking to double its share of natural gas in the energy equation to 10%, and reported talks over Kitimat LNG are in line with this goal.

Related article: Gazprom Takes on Lithuania with New LNG Terminal

Earlier this month, the Canadian subsidiary of China’s CNOOC was awarded exclusive rights to proceed with a proposed terminal to export LNG from the Pacific coast.

Last month, Apache struck a deal with Sinopec to sell a one-third stake in its Egypt oil-and-gas business for $3.1 billion.

By. Joao Peixe of Oilprice.com




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News