PetroChina Weighs LNG Canada Stake Sale Amid Global Supply Crunch
PetroChina, China's largest oil and gas producer, is considering selling part of its stake in LNG Canada Development Inc. to fund a planned expansion of the facility.
The company currently holds a 15% stake in the project, which could be worth a few billion dollars if sold. PetroChina may reduce its holding gradually through several smaller transactions, according to people familiar with the matter.
The expansion plans for LNG Canada are gaining urgency due to global supply crunch concerns, particularly after the war involving Iran and the closure of the Strait of Hormuz. China has been seeking alternative sources of liquefied natural gas (LNG) following disruptions in deliveries from Qatar.
LNG Canada's first phase began exporting last year, and its partners agreed to invest $31 billion in the project in 2018. Chinese companies are also looking to reduce their reliance on Persian Gulf supplies by seeking more LNG from Canada and other producers.