Energy giant Peabody said on Wednesday it would go public.
The stock price rose after a report in The Wall Street Journal said the company has entered into an exclusive deal with the Chinese oil giant CNPC to build and operate a natural gas liquefied natural gas export facility in eastern China.
CNPC is the largest producer of natural gas in the world and a major investor in Peabotry.
The company said it would enter into the first of a planned series of agreements with other energy companies and other Chinese companies to develop, operate and supply natural gas liquids for export.
“Peabody has entered a strategic partnership with CNPC in an effort to further expand its capacity for both natural gas and liquefier gas liquids,” the company said in a statement.”CNPC’s continued support for our natural gas business will further expand our access to new markets in China.”
Peaboys announcement follows a flurry of activity on the part of Peaboys to go public in China, the world’s second-largest oil producer.
It is also a significant setback for the energy industry in China that has been trying to diversify away from coal.
Peaboy’s chief executive, Jeff Buhl, told analysts on Wednesday the company’s decision to go private was driven by cost and cost-benefit considerations.
He said the $3.5 billion project would cost $30 to $40 billion.
Peaboroys announcement came as the U.S. and Europe announced plans to ramp up their efforts to boost the use of liquefiers in order to meet global emissions targets.
U.K. energy minister Philip Hammond told reporters on Wednesday that the U,S., China and Europe had agreed to a new global carbon market for carbon dioxide and other greenhouse gases, which would help to reduce the cost of energy and support economic growth.
“We’re now going to look at the next two years and we’re going to do our best to ensure that we get the most bang for our buck in terms of reducing emissions, which means having the lowest emissions possible,” Hammond said.
“We’re going after a global market for CO2 emissions.
And that’s something we are looking at very seriously and very seriously.”
China is a key player in the liquefying of natural gases, particularly gas liquids, which can be used in the production of petroleum products.
China is also one of the world leaders in the use and distribution of natural-gas liquefaction plants.
In 2016, China produced 9.5 trillion cubic feet of natural natural gas, which accounted for more than a quarter of all global gas production.
PeABoy’s announcement comes amid a surge in interest in PeABoy and the other energy giants.
A number of smaller energy companies have gone public since last year, including Royal Dutch Shell and ExxonMobil.