CALGARY — PetroChina Co. is considering selling part of its ownership stake in LNG Canada as the company looks to help fund a major expansion of the liquefied natural gas (LNG) export terminal in Kitimat, BC.According to sources familiar with the matter, the Chinese state-owned energy company is working with an adviser to gauge investor interest in its 15% stake — possibly worth several billion dollars — in LNG Canada Development Inc.Bloomberg reports PetroChina may also gradually reduce its holdings through several small transactions, however the discussions remain in the early stages and no final decision has been made.The proceeds from any sale would reportedly help fund the project's proposed second phase, which would double the facility's LNG production capacity."We are not in a position to comment on any process that may be undertaken by our joint venture participants," LNG Canada spokesperson Sarah Norman told Bloomberg..LNG Canada moves ahead with work for potential Phase 2 expansion.Talk of LNG Canada’s expansion comes as geopolitical and economic uncertainty in the Middle East due to the Iran conflict and the temporary closure of the Strait of Hormuz — a critical shipping route that handles approximately one-fifth of the world’s LNG trade — have raised concerns about global LNG supplies.The Kitimat facility has also become increasingly important to China as it seeks to diversify its energy imports.LNG Canada’s first phase began exporting LNG last year, marking Canada's entry into the global LNG export market.The $31-billion (US) project is owned by a consortium that includes Shell Plc, Mitsubishi Corp., Petroliam Nasional Bhd., Korea Gas Corp. and PetroChina.According to ship-tracking data, disruptions to LNG shipments from Qatar, which accounted for nearly 30% of China’s LNG imports last year, have increased the value of Canadian exports.Earlier this month, it was reported that Chinese companies were seeking additional LNG supplies from Canada and other exporters to help reduce their dependence on the Middle East and protect against possible future supply disruptions.
