PetroChina (PTR) Subsidiaries To Expand LNG & Oil Terminals
Zacks Investment Research | Jan 13, 2019 09:49PM ET
Two subsidiaries of PetroChina Company Limited (NYSE:PTR) recently struck deals with Yantai Port Group, a state-run port operation services provider, to develop a new liquified natural gas (LNG) receiving terminal. The companies will also jointly work on enhancing a crude oil terminal at Yantai port, located in the eastern part of Shandong province.
LNG Terminal Deal
PetroChina’s unit, Kunlun Energy, along with Yantai Port Group will invest ¥7 billion ($1 billion) to construct the LNG terminal, which will have four storage tanks of 200,000 cubic meters. Both the companies will also build a dock, with a capacity of receiving LNG vessels of 266,000 cubic meters.
The subsidiary of PetroChina already operates three major LNG terminals in the Jiangsu, Hebei and Liaoning provinces, with 19.3 million metric tons per year of LNG receiving capacity. It also has a small LNG reserve storage in the Hainan island. The company has two projects associated with LNG terminals under construction, which are expected to come online by 2020. Per S&P Global (NYSE:SPGI) Platts, Kunlun intends to build 11 LNG import terminals, which are expected to ramp up its LNG receiving capacity by 80 million metric tons per annum by 2030.
Crude Oil Terminal
Another subsidiary of PetroChina, PetroChina Fuel Oil, coupled with Yantai Port Group intends to invest about ¥5 billion ($739.9 million) to expand a crude oil terminal and storage tanks at west Yantai port, and build the second phase of its Yantai-Zibocrude oil pipeline in the Shandong province. Notably, a joint venture between CNOOC Limited (NYSE:CEO) and Yantai Port Group operates the existing phase 1 crude terminal, which came online in September 2016.
Price Performance
PetroChina is the largest integrated oil company in China. It has lost 17.4% in the past year compared with 10.4% decline of its Zacks Investment Research
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