CNPC Unit in deals down-under

Huanqui has signed an engineering procurement and construction services contract with Australian company, LNG Ltd for the Fisherman’s Landing LNG project in Queensland. Huanqui, a unit of CNPC, has also bought a 19.9% stake in the Australian firm.

The value of the Fisherman’s Landing contract, which includes the first LNG train, the LNG tank and all the relevant infrastructure, is estimated to be worth somewhere in the region of US$ 760 million. Once completed, the plant should be capable of producing a guaranteed supply of 1.5 million tpy.

LNG Ltd has stated that the estimated total cost for the project, including marine infrastructure, is approximately US$ 1.1 billion.

With its 19.9% share, Huanqui is the largest shareholder in LNG Ltd, and according to a statement released by the Chinese unit, will have rights allowing the use of LNG’s proprietary technology.

Huanqui has in recent years emerged as one of China’s leaders in the LNG terminal construction business and a desire to expand into the gas liquefaction field made its stake in LNG Ltd a logical purchase.

Huanqui is currently in the process of building China’s largest onshore gas liquefaction facility, with a predicted capacity of 500 000 tpy; purchasing a stake in LNG Ltd, which has experience in the construction of 1 – 6 million t projects, has allowed Huanqui to access valuable technology and experience.

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