Beijing, China — 15 March 2013 – China National Petroleum Corporation “’ China’s largest oil producer “’ is to spend a total of US$4.2 billion for a stake in Italian integrated energy company ENI’s African natural-gas assets, as China looks to feed energy demand while reducing its reliance on coal.
CNPC will buy a 20% stake in Mozambique’s Area 4, where 75 trillion cubic feet of gas, or more than Norway’s existing reserves, has been found, state-controlled CNPC said here in a statement on its website.
The purchase will be the biggest deal involving an Asian company announced so far this year, and CNPC’s largest overseas purchase ever, according to data compiled by Bloomberg News.
China’s oil companies have bought oil and gas fields in countries ranging from Australia to Canada to Nigeria to meet energy demand in the world’s fastest-growing major economy.
“This acquisition affirms China’s insatiable appetite for environmentally friendly natural gas projects, paving the way for more domestic natural gas pricing adjustments ahead,” said Gordon Kwan, head of energy research at Mirae Asset Securities Limited in Hong Kong. “Coal will slowly lose market share in China in the coming decade.”
Pollution in Beijing rose to a record high on January 12, sparking criticism of the government’s management of the environment.
Eni and Anadarko Petroleum Corporation “’ the two companies leading exploration in Mozambique “’ agreed last year to build the world’s second-largest liquefied natural-gas export plant to start sending fuel abroad in 2018.
Caption, Pic 1: The second-largest liquefied natural gas plant in the world is to be built in Mozambique.
Source: Bloomberg News. For more information, click here.