Sinopec Likely to Pick Up 15% Stake in Petronas’ Pacific Northwest LNG

Chinese state owned energy major, Sinopec in moving towards picking up a 15 percent stake in Petronas’ Pacific Northwest LNG project in British Columbia, reports news agency Reuters citing sources.

Earlier this month the Malaysian firm sold 10 percent interest in Progress Energy Canada’s shale gas assets in northeast British Columbia and in the proposed Pacific NorthWest LNG project to Indian Oil Corporation (IOC).

Progress Energy is wholly owned by Petronas.

Last year, Japex acquired 10 percent and Petroleum Brunei bought three percent stake in the project. Following the closing of the IOC acquisition, the Malaysian firm will hold 77 percent of the integrated project.

While IOC secured around 1.2 million tonnes per annum (mtpa) of the project's 12 mtpa export capacity, Sinopec can expect to receive around 1.8 mtpa with a 15 percent stake, one of the sources told Reuters.

According to Reuters Sinopec is also in talks to invest in the Kitimat project.

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