An engineering unit of China’s CNPC has agreed to buy a 19.9 per cent stake in Liquefied Natural Gas Ltd
(ASX:LNG). The value of the deal has not been disclosed.
The deal will take LNG closer to realising its three million-tonne-per-year coal seam gas to LNG project.
The Perth based company has approval to convert coal-seam gas but effectively lost its gas supply when its project partner was taken over this year by the backers of a rival plant.
According to analysts, LNG makes an attractive acquisition partly because of its technology which can be used in other projects.
In the year to 30 June 2010, Liquefied Natural Gas Ltd reported a net loss of $42 million.
