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Sinopec in talks to invest in Kitimat LNG project- source

Wednesday, 27 Nov 2013 | 5:32 AM ET

Nov 27 (Reuters) - Sinopec , China's biggest oil refiner, is in talks with Apache Corp to buy a stake in the Kitimat LNG export project on Canada's Pacific coast, according to an industry executive with direct knowledge of the matter.

Kitimat LNG, co-owned by Apache and Chevron Corp, was awarded Canada's first LNG export license in 2011, allowing it to export 10 million tons of LNG per year.

The $15 billion project, located in northern British Columbia, is expected to begin shipping gas to Asia by 2017.

"If the conditions of the discussions meet Sinopec's requirement - meaning if it is a profitable investment - Sinopec is willing to participate," the executive told Reuters.

Sinopec is also talking to other companies for similar investments, the executive said, declining to provide details.

Apache paid Chevron $150 million in February to raise its stake in the project to 50 percent.

The Wall Street Journal first reported that Sinopec was in talks with Apache to buy a minority stake in the project. The size and value of the stake have not been determined, the newspaper said. ()

Apache could not immediately be reached for comment by Reuters outside of regular U.S. business hours. A Sinopec spokesman was not immediately available for comment.

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