Petronas Plans to Trim Stake in Canadian LNG Project

Malaysia’s Petronas plans to offload its stake in Canadian liquefied natural gas (LNG) export project.

According to Reuters, the company plans to bring down its share in the $20 billion project to as low as 50 percent in order to share the cost of bringing cheap energy to Asia.

The Malaysian state oil firm is in discussions with China Petroleum & Chemical Corp (Sinopec) to take up at least a 10 percent stake, sources told Reuters.

"The directive is to go aggressive on sharing out the risk for such a project. It's win-win as Petronas raises the cash and the partners get preferential access to Canada LNG supplies," one source familiar with Petronas' commercial strategy told Reuters.

Earlier this month Reuters has reported that Petronas is in advanced discussions with Indian Oil Corp to sell a 10 percent stake valued at about $1 billion.

Assuming Petronas concludes every additional 10 percent stake sale at about $1 billion, it would raise close to $5 billion by cutting down its stake to 50 percent, Reuters said.