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China is going to buy gas in Canada


Mayıs, 07 2024
watermark Economic news

According to media reports, Sinopec, the Chinese energy company, plans to start purchasing 1.5 million tons of liquefied natural gas (LNG) from the Canadian company Pembina Pipeline starting in 2028. 


It is assumed that the main source of supplies will be the Cedar LNG plant, which is currently being built by Pembina itself and the Indian Haisla First Nation. The project, which is estimated to cost $4 billion, is planned to be jointly developed by the two companies. In addition to gas purchases, Sinopec would like to receive a share in the project, but it is not reported what kind.


Cedar is expected to become one of the first LNG export terminals in Canada and provide direct access for Canadian gas to Asian markets. This step will help China reduce its export dependence on the United States, which is an important strategic step for the country.


Earlier, Sinopec signed an agreement to purchase 4 million tons of LNG per year in Qatar from the state-owned QatarEnergy for 27 years. At the same time, at the end of last year, Chinese state-owned oil and gas companies CNPC and Cnooc appealed to the United States to lift sanctions on the Russian Arctic LNG 2 project, which was supposed to supply gas to China. However, at the moment, the fate of this project remains in doubt due to the lack of courts.



    






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