Chinese Company Planning Massive LNG Facility in BC

CNOOC Ltd. (NYSE:CEO) — the Chinese state-owned company that a year ago acquired Nexen Inc — is now making plans to build a huge liquefied natural gas facility in northern British Columbia, the Vancouver Sun reported.

As quoted in the market news:

The Canadian subsidiary of the state-run giant is seeking permission from Canada’s National Energy Board to export 24 million tonnes of super-cooled gas per year, or just over three billion cubic feet a day over 25 years from a proposed terminal at Grassy Point on B.C.’s northern coast, it said in an application to the federal regulator. First cargoes would be in the 2021 to 2023 time frame, the company said.

CNOOC-owned Nexen secured exclusive rights with Japan’s Inpex Corp. and JGC Corp. to examine building an export plant on the isolated peninsula after paying the B.C. government a non-refundable $12-million deposit, edging out rival bids for the Crown land. Its export filing comes as state-owned China Petrochemical Corp., or Sinopec, eyes a possible stake in another Canadian LNG project led by U.S. oil major Chevron Corp., according to two reports. 

Read the full Vancouver Sun story here