Sinopec is presently in investment talks with US oil-and-gas producer Apache Corp. The two firms are planning to buy a minority stake in Kitimat, a liquefied natural gas (LNG) project in Canada, according to people familiar with the situation. The said unidentified sources were cited in a report by The Wall Street Journal.
One of the sources said the size and value of the stake to be purchased has not yet been determined. However, Sinopec's investment would pay for the cost of the Kitimat project, said the source. Last year, Apache valued the cost at USD15 billion, the report stated.
In February, Apache increased its Kitimat stake from 40% to 50%. This number valued the project at USD4.05 billion. The Kitimat assets include pipelines, 644,000 of raw shale resources, and an LNG processing facility, said the report.
Sinopec is the largest refiner in China by output. The company could also be a buyer of the LNG produced by the Kitimat project, The Wall Street Journal reported.
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