PetroChina Considers Selling Stake in LNG Canada to Fund Expansion

PetroChina is considering selling up to 15% of its stake in LNG Canada, a massive liquefied natural gas project in British Columbia, Canada. The company has hired financial advisors to gauge interest from potential buyers and could raise several billion US dollars from the sale. PetroChina plans to use the proceeds to fund Phase II expansion of the project, which will double capacity to 28 million tons per year.

The LNG Canada project is a joint venture between five multinational energy companies, including Shell, Petronas, Mitsubishi Corporation, and KOGAS. It has already completed its first phase, with two liquefaction trains producing 14 million tons of LNG annually. The second phase will add two more trains, making it one of the world's top LNG export facilities.

PetroChina's decision to sell part of its stake is likely driven by the need for funding to support Phase II expansion. Selling old shares can help reduce pressure on the company's operating cash flow and allow it to share the costs with other shareholders. The deal would also optimize PetroChina's global oil and gas asset portfolio and diversify risks associated with commodity prices, geopolitics, and construction.