PYI Corp, refocusing on bulk cargo ports, is betting heavily that PetroChina will use the company's port facility in Nantong, Jiangsu province, where it is planning to invest $2.7 billion.
The company yesterday received approval from shareholders to dispose of Paul Y Centre in Kwun Tong for $780 million. The company plans to put the proceeds towards the port project in expenditure to 2008.
Whether it is a smart move depends on PetroChina's decision.
'I hope, within three months, PetroChina will announce their plan to build an LNG (liquefied natural gas) terminal at Nantong,' said Tom Lau Ko-yuen, PYI's deputy chairman and managing director.
'The location had been decided in the 11th development plan of the Chinese government,' Mr Lau said. However, he refused to comment on repercussions if PetroChina chose not to use Nantong.
PetroChina is known to want to build an LNG terminal at Rudong in Nantong. But it is still unclear whether it would build its own port facility or use the terminal developed by PYI.
