Tokyo - KUNA
China's biggest refiner Sinopec and its partner China Huadian Corp. have reached a deal to buy liquefied natural gas (LNG) from a Canada-based LNG project operated by Malaysia' state-owned Petronas, the official Xinhua News Agency reported Wednesday. Sinopec's team will acquire a 15-percent stake in the Pacific Northwest LNG Project (PNW LNG), which will allow them 1.8 million cubic meters of LNG annually for 20 years, the report said. Sinopec will have a 10-percent stake and Huaidan will have 5 percent. In addition, Sinopec, through its affiliate, has signed a binding Heads of Agreement with Petronas for the purchase of 3 million cubic meters of LNG for 20 years. The transactions are yet to be approved by authorities. These deals are expected to secure 4.2 million cubic meters of LNG per year for Sinopec, which will help the company boost its gas market share in China as well as its clean energy supply capacity, the company said. PNW LNG is located on Canada's West Coast, with natural gas sourced from Progress Energy Canada Ltd's North Montney assets. Petronas is the project operator and majority owner of Progress Energy and PNW LNG projects.