Sinopec Kantons Holdings Ltd. (00934.HK), the storage and logistics arm of petrochemical giant China Petroleum & Chemical Corp. (Sinopec, 00386.HK), is seeking to acquire a natural gas project from its parent, the Hong Kong Economic Journal reported Friday.
The target asset is a liquefied natural gas (LNG) depot in the port city of Qingdao in China’s eastern Shandong province, Sinopec Kantons chairman Chen Bo said.
It is Sinopec’s first LNG receiving terminal and has only begun operations, the report said.
Also, Sinopec Kantons has future plans to acquire assets from a second-phase expansion of the LNG facility.
Sinopec Kantons, which has been providing logistics services to Sinopec’s natural gas business, is building 10 LNG vessels to serve two large projects that will handle two million tons and 7.6 million tons of LNG imports from Papua New Guinea and Australia, respectively.
Meanwhile, Sinopec Kantons’ crude storage project in a free trade zone on Indonesia’s Batam island is facing legal and political challenges.
Chen said the project, worth US$840 million in investment, will support Sinopec’s international fuel trade.
Translation by Vey Wong
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