China And The Majors To Face Off Over PNG

Two Chinese state-run companies are reportedly planning a bid for up to 35% in the Liquid Niugini liquefied natural gas (LNG) project in Papua New Guinea (PNG), the operator of which has been looking for strategic partners to help finance the US$5bn export terminal near the PNG capital Port Moresby, which is scheduled to begin exporting 5mn tonnes per annum (tpa) of LNG starting in 2015. According to the South China Morning Post, China National Offshore Oil Corporation (CNC) and PetroChina are planning to launch a bid worth up to US$500mn for a stake in Liquid Niugini. Coming just weeks after Sinopec Group's US$7.2 billion bid for Swiss oil explorer Addax Petroleum, the move is yet another demonstration of China's ambition to secure oil supplies, and also of CFW's assertion that in the aftermath of the Rio Tinto/Chinalco debacle, Chinese firms would increasingly pursue lower key stake sales over outright takeovers.

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