China Moving In On The U.S LNG and Shale Boom

China Petroleum and Chemical Corp (Sinopec), Bank of China and CIC Capital Corp signed a joint development agreement with Alaska Gasoline Development Corp and the State of Alaska to jointly build an integrated liquefied natural gas (LNG) system valued at $43 billion.

China Energy Investment Corp signed a memorandum of understanding with West Virginia state to invest $83.7 billion in shale gas, power and chemical projects.

Delfin Midstream has reached a preliminary 15-year sales deal to supply 3 million tons of LNG a year to city gas distributor China Gas Holdings from 2021.

Under the agreement, signed by Thrasher and China Energy President Ling Wen, the Chinese company intends to invest more than $80 billion in West Virginia in the next 20 years, including plans to build new gas-fired power plants, the development of an ethane storage hub for the region, chemical manufacturing and industries related to the extraction and transportation of natural gas. Based on a statement from West Virginia’s Department of Commerce, China Energy Investment would spend $83.7 billion over 20 years, or more than $4 billion annually.

West Virginia Oil and Natural Gas Association Executive Director Anne Blankenship said. “Natural-gas-powered electric generation facilities, natural gas liquid storage, and the petrochemical manufacturing industry have all been part of our policy initiatives, and we are excited to hear that a huge investment is planned to further those developments.

“By creating additional uses for the enormous amount of natural gas that we are sitting on in West Virginia, and using those resources here, we not only grow our natural gas industry, we grow the manufacturing industry, jobs and state revenue,” she said.

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