Monday, December 12

Sinopec to Invest $1 Billion to Boost Australian LNG Stake

Dec. 12 (Bloomberg) -- China Petrochemical Corp., Asia’s biggest refiner, agreed to increase its stake in an Australian liquefied natural gas project led by ConocoPhillips and Origin Energy Ltd. for an estimated $1 billion.
Sinopec Group, as the company is called, signed an initial accord to acquire a further 10 percent of the venture, Sydney- based Origin said in a statement today. Sinopec Group, which agreed to pay $1.5 billion for 15 percent of the project in April, will also buy an extra 3.3 million metric tons of LNG a year through 2035, clearing the way for an investment decision on the second phase of the $20 billion Queensland state venture.
The Chinese government aims to more than double the use of natural gas to cut reliance on coal and oil. The country is increasing its LNG imports as it develops unconventional sources such as shale gas, said Ivor Ries, an analyst at E.L. & C. Baillieu Stockbroking Ltd.


Bloomberg Business Week

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