Sinopec eyes Kitimat investment

Sinopec, the management division of China Petrochemical Corp., China’s largest refiner, is reportedly in talks with US player Apache over the possible acquisition of a minority stake in the Kitimat LNG project on the British Columbian coast.

Rich Coleman, Canada’s Minister of Natural Gas Development, revealed earlier this month that the company was in talks on a site with a potential business partner.

The Chinese giants are said to be looking at other possible investments on the BC coast, which they may choose over Kitimat, although it is thought that Sinopec has declared an interest in buying LNG produced from the project.

The size and cost of the stake has yet to be decided, but Sinopec’s potential investment is said to amount to the cost of the project, which Apache estimated last year to be in the region of US$ 15 billion.

A spokesperson from Sinopec declined to comment, although Apache said that it was looking for partners.

Kitimat LNG

At present, the Kitimat LNG project is jointly owned by Apache and Chevron, each with a 50% hold. Currently valued at US$ 4.05 billion, the project includes a LNG processing plant, pipelines and 644 000 acres of untapped shale reserves. Originally designed as an import hub, in 2008, following the North American shale boom, plans were made for the construction of an export terminal.

Edited from various sources by Ted Monroe

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