State-controlled China National and its Hong Kong-listed unit Cnooc have spent more than $4 billion so far this year on oil and gas assets in Argentina and North America to help meet demand from the world?s fastest-growing major economy.
?Soaring gas demand in China has prompted its state-owned companies to speed up acquisition of the fuel globally, not only conventional piped gas and LNG but also unconventional gas,? Qiu Xiaofeng, an analyst with China Merchants Securities Co., said by phone. ?Australia will continue to be a key gas supplier for China because of its rich resources and relatively established transport facilities.?
Coal-seam gas is mostly methane found on the surface of coal and can be extracted by reducing pressure on the seams, usually by removing water. Shale gas is gas found in shale formations. LNG is gas chilled to liquid form for transportation by ship to places not linked by pipelines. http://www.bloomberg.com/news/2010-12-08/cnooc-parent-to-buy-stake-in-exoma-s-queensland-blocks-for-a-50-million.html
MPO Price at posting:
97.0¢ Sentiment: Hold Disclosure: Held
