China's Sinopec in talks to Buy Stake in Kitimat LNG

Sinopec is in talks with Apache Corp to buy a stake in the Kitimat LNG project on Canada’s Pacific coast, Reuters reported citing an industry executive.

Apache and Chevron each own 50 percent of the Kitimat LNG project. According to its website, Chevron will market LNG, and operate the plant and pipeline assets. Apache will operate upstream development of 644,000 acres in British Columbia's Horn River, Liard shale gas discoveries.

“If the conditions of the discussions meet Sinopec’s requirement – meaning if it is a profitable investment – Sinopec is willing to participate,” the executive told Reuters.

Sinopec is also talking to other companies for similar investments, the executive said, declining to provide details.

In February this year, Apache paid Chevron $150-million to raise its stake in the project to 50 per cent.

The Wall Street Journal first reported that Sinopec was in talks with Apache to buy a minority stake in the project, Reuters said.

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