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Market Chatter: PetroChina Explores LNG Canada Development Stake Divestment

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Chinese state-owned energy major PetroChina is considering selling a portion of its stake in LNG Canada Development and has hired an adviser to assess market interest, Bloomberg reported Tuesday, citing undisclosed sources.

PetroChina, which owns a 15% stake in LNG Canada Development, potentially valued at a few billion dollars, may opt to cut its interest through several small deals, the report said, adding that the company is in early stage talks and no decision has been taken yet.

The Chinese oil and gas company intends to use deal proceeds to fund the planned second phase expansion of the LNG Canada Development, which would double the facility's output. The project has been an important liquefied natural gas alternative for China amid the ongoing Middle East energy supply crisis and the disruptions to deliveries from Qatar, which accounted for 30% of the country's 2025 LNG imports, the report added.

The first phase of the $31 billion LNG project in Kitimat, British Columbia, began exports last year. Other partners in the project include Shell (SHEL), Mitsubishi Corp, Petroliam Nasional Bhd, and Korea Gas.

has reached out to PetroChina and LNG Canada for comments.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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