Corrected: UK’s BP to sell last liquefied petroleum gas assets in China

06 December 2012 11:16  [Source: ICIS news]

Correction: In the ICIS news story headlined “UK’s BP to sell last liquefied petroleum gas assets in China” dated 06 December 2012, please read in the first paragraph … BP is looking to sell its last liquefied petroleum gas (LPG) assets in China, a 66.7% stake in a joint venture company in Fujian province … instead of … a 33.3% stake in a joint venture company in Fujian province … A corrected story follows.

SINGAPORE (ICIS)--BP is looking to sell its last liquefied petroleum gas (LPG) assets in China, a 66.7% stake in a joint venture company in Fujian province, as the UK oil and gas major accelerates the worldwide divestment of its LPG business, a company source said on Thursday.

The joint venture, BP (Fujian) Petroleum Co (BP Fujian), has its remaining 33.3% interest held by China Resources Gas (CRG).

BP Fujian’s LPG assets include a 10,000 dwt (dead weight tonnage) jetty, LPG tanks with a total storage capacity of about 7,000 cbm and some LPG filling stations.

Financial information was not disclosed. BP intends to sell all its interests to a single buyer, the source said.

Two potential buyers, CRG and China National Petroleum Corporation (CNPC), have both showed interest in BP Fujian, said the source.

CRG has preemption in the assets as it is already a shareholder, however, CNPC has shown a stronger interest, BP source added.

CNPC has more interest in BP Fujian’s jetties, petrol stations and vacant land where tanks can be built than in the LPG assets, market sources said, adding that the acquisition will also strengthen CNPC’s position in southern China’s LPG markets.

These assets may be sold early next year, market sources said.

BP has reached an agreement with SHV Gas (China) to sell its LPG assets in Foshan, Zhuhai and Jiangmen in Guangdong and those in Shanghai, according to the company source.

BP announced in February 2012 that it intended to sell its LPG bottle and tank-filling operations, together with its LPG storage terminals, customer lists, operating licences and logistic assets worldwide before the end of next year.


By: Monica Wang



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