Tag: Sinopec

Sinopec in talks to buy into Kitimat LNG Wall Street Journal says

sinopeclogoThe Wall Street Journal is quoting sources that Sinopec, China’s largest  petroleum refining company, “is in early talks with U.S.-based oil-and-gas producer Apache to buy a minority stake in a liquefied natural gas project on Canada’s Pacific coast.”  And since Apache is a partner with Chevron in KM LNG, that means the project commonly known as Kitimat LNG.

Wall Street Journal story (subscription required)

Costs rising

Sinopec is looking at several of the at least 13 LNG projects in the northwest BC region. The reports say that Sinopec management has not yet signed off any investment and say that any Sinopec investment would go toward the rising costs of the KM LNG project’s costs, which Apache now estimate will be about $15 billion US.

“Apache is moving forward with the project, and we’re looking for partners,” says an Apache spokesman, according to the reports. It appears that Apache is once again recalculating the cost of the Kitimat project.

Sinopec, the China Petroleum and Chemical Corporation is the world’s fifth largest company by revenue.   It has a $4.65 billion stake in the bitumen sands giant Syncrude and owns the Canadian energy company Sinopec Daylight Energy Ltd through Sinopec Canada.

It was a Sinopec pipeline that exploded in Qindao in Eastern China, killing 55 people on Friday, as well as spilling oil into the nearby sea.

 

Reports say Shell near deal for Kitimat LNG project, as Oliver approves the BC LNG

The Minister of Natural Resources, Joe Oliver, has confirmed the approval of the 20 year export licence for the BC LNG Export Cooperative. The National Energy Board had approved the licence in February.

Earlier the government had also approved the export for the KM LNG project.

In a statement, Oliver said, “This export licence is another example of our Government’s commitment to diversifying our energy export markets and strengthening our trading partnership with Asia. Canada is a safe, responsible, and reliable supplier of energy contributing to global energy security.”

“Canada is well positioned to grow as a global energy superpower. Projects such as this will show the world that we are serious about getting our energy resources to market.”

The liquefied natural gas facility would be located on the west bank of the Douglas Channel at small cove near Kitimat. BC LNG Export Co-operative intends to ship up to 1.8 million tonnes of liquefied natural gas annually to markets in Asia.

Natural gas would be transported to the proposed Douglas Channel terminal on the existing Pacific Northern Gas Pipeline and potentially on the proposed Pacific Trail Pipeline. The proposed liquefied natural gas facility is undergoing an environmental assessment in accordance with the Canadian Environmental Assessment Act. The initial phase of the facility is expected to be in operation by late 2013 or early 2014 and, if it proceeds, would represent the very first liquefied natural gas exports from Canada.

Meanwhile, Reuters quoting the Japanese Nikkei, reported that Royal Dutch Shell together with Mitsubishi Corp, China National Petroleum Corp and Korea Gas Corp are in the final stages of negotiations to build a US$12.35-billion liquefied natural gas (LNG) terminal at Kitimat.
The companies will ship gas from their Canadian fields for the project and expect to begin production around 2020 at an annual rate of 12 million tons, Nikkei reported.

Nikkei said a broad agreement is expected as early as this month, after which the four companies will start seeking approval for the project.

Shell brought the old Methanex site and marine terminal in Kitimat last fall.