PetroChina unit raises $1.38bn in share sale

Kunlun Energy, the China-based gas supplier which is a wholly owned subsidiary of PetroChina, on Tuesday raised $1.35bn through a top-up share placement to help fund expansion of its LNG business.

The gas supplier hopes to tap into equity markets to assist in developing its liquefied natural gas arm and fund possible acquisitions. The plan is to steer away from oil and coal and switch to LNG. The group plans to construct 15 LNG plants to become the country’s largest onshore supplier.

Kunlar Energy priced its 800 million shares at HK$13.10, which was 7.62 percent below Monday’s closing price of HK$14.18.

“The company tends to use the net proceeds of the subscription for working capital to further develop its LNG business through the implementation of its gas in substitution of oil strategy,” the company said in a statement.