British Columbia Nears Land Deal For Sinopec LNG Export Project

The British Columbia government is close to completing an accord for land needed by China Petrochemical Corp. for a proposed liquefied natural gas export project in Canada’s westernmost province.

Asia’s largest refiner, known as Sinopec Group, is interested in sourcing Canadian LNG supplies to help meet a near-term import target of about 30 million metric tons a year, Rich Coleman, British Columbia’s Minister of Natural Gas Development, said today on a call from Kuala Lumpur. Coleman met with Sinopec executives during an eight-day trip that ended today to promote the province’s LNG industry, he told reporters.

“Sinopec wants to be an early mover and we will shortly be in a position to finalize the arrangements with them with regards to their land needs in B.C.,” Coleman said of Sinopec. He declined to provide details and said there may be LNG announcements from the government in the next couple of weeks.

Lv Dapeng, Sinopec’s Beijing-based spokesman, did not answer two phone calls to his office today seeking comment.

Royal Dutch Shell Plc (RDSA), Chevron Corp., BG Group Plc (BG/) and Cnooc Ltd. (883) are among international energy companies proposing or considering LNG export projects in western Canada, including pipelines across British Columbia’s mountains to link gas supplies in shale formations to Pacific Coast facilities.

Four proposed terminals are targeted to start operations before 2020, including three for which the Canadian government has already awarded export licenses. The British Columbia government has sought expressions of interest from LNG proponents to develop projects on some land it owns.

To contact the reporter on this story: Rebecca Penty in Calgary at rpenty@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net

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