PetroChina signs LNG deal

PetroChina, China's largest oil and gas producer, signed a US$716m agreement to build a liquefied natural gas (LNG) import terminal in the Guangxi autonomous region. The deal marks PetroChina's first step into LNG import and distribution, challenging the dominance of rival China National Offshore Oil. The company said it had also signed preliminary agreements of intent with the provincial governments of Jiangsu and Liaoning for LNG terminals, putting it in direct competition with China National. No date was given for the completion of the Guangxi terminal, although the company said LNG was a priority growth segment for its business. PetroChina said it was looking at three possible sites to locate the terminal — Fangcheng, Qinzhou and Beihai.