China still spending on foreign energy
China announced a $US1.63 billion investment in an Australian liquified natural gas operation overnight.
The Australian reports:
China’s desire to secure the oil and gas supplies critical to its growth and the comparatively cheap finance available to its energy giants means the spree of big-ticket acquisitions by the likes of PetroChina, Sinopec and CNOOC won’t end soon.
The valuation on this deal is lofty and that signals China could be more willing to invest further in Australia than was believed. Canada closed the door to Chinese takeovers after the Nexen deal but is still open to less-than-50% investment.