Kunlun Energy, a Hong Kong unit of China National Petroleum Corp, is looking to sell its upstream assets and buy an LNG terminal from its parent company.
The company, that intends to shift its focus to gas distribution, is looking to buy the LNG terminal in Tangshan in northern China, from CNPC, Kunlun Energy’s chairman Huang Weihe said, Bloomberg reports.
Speaking to the media, Huang said the company has set a clear goal to be a downstream-focused gas distributor in China, and is seeking to sell its international assets, either to CNPC or global oil majors.
He added that Kunlun owns nine oil and gas producing assets that, due to the drop in crude prices, have started contributing negatively to the company’s profit.
On the other hand, Kunlun Energy’s two LNG terminals have returned to profit during the first part of this year after they posted losses in 2015, Huang said.
LNG World News Staff