China’s state-owned Sinochem is in early talks with Noble Group to buy an equity stake in the embattled trader, three sources familiar with the matter said, in a move that would help it gain access to the commodity trader’s global supply chain.

Taking a stake in an internationally active trading house like Noble would help Sinochem, a big oil, gas and petrochemical company, in its ambitions to become a more globally active energy trader, and also develop China’s gas industry.

The discussions are taking place as Singapore-listed Noble looks to rejig its business units, cut debt and boost liquidity to fight a long-term downtrend in commodity prices.

In November, Hong Kong-headquartered Noble said it had met its capital raising target of $2 billion as it sold assets, completed a rights issue and restructured its operations.

The sources said the talks have not been completed and there is no assurance that a deal will be finalised. They said senior Noble executives visited China in recent months to hold talks with Sinochem’s management, and both sides also met at Noble’s US regional hub in Stamford, Connecticut.

The sources declined to be identified as they were not authorised to speak to the media. Sinochem did not immediately return a request for comment. Responding to the Reuters story, Noble told the Singapore exchange that it was holding talks but did not give details.

"The board wishes to advise that Noble Group is currently engaged in discussions regarding a possible strategic investment in Noble Group," it said.

"However, no binding arrangements have as yet been entered into with respect to this possible transaction and, accordingly, there can be no assurance that this transaction will be concluded."

Noble already has the backing of Chinese sovereign wealth fund China Investment Corp (CIC).