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Thursday, 22 May 14
CNPC-GAZPROM DEAL A MEDIUM - TERM POSITIVE FOR CHINA'S GAS SECTOR
 Fitch Ratings says a 30-year deal in which Russia's OAO Gazprom (BBB/Negative) will supply gas to China National Petroleum Corporation (CNPC; A+/Stable) underscores CNPC's strategic role in the country's gas pipeline infrastructure and helps China to secure adequate gas supply over the medium term, especially for the north-eastern part of the country.
Under the deal, Gazprom will supply 38 billion cubic metres (bcm) of gas a year starting around 2018 at a price that sets a new benchmark for what China is willing to pay for natural gas over longer term contracts.
The agreement also demonstrates China's determination to switch to cleaner energy. China used around 168bcm of natural gas in 2013 and aims to use over 400bcm in 2020. The import agreement will meet close to 10% of China's consumption of natural gas in the medium term. Although China has substantial gas resources, exploiting the large unconventional reserves is technologically challenging. In 2013, the country imported nearly 30% of its gas requirement. We expect imports to increase as a share of total consumption in the medium term.
The new deal helps diversify the sources of China's natural gas imports, now mainly Turkmenistan and shipments of liquefied natural gas (LNG). It follows an agreement by CNPC in 2013 to take an equity stake in a Russian LNG project and buy gas from the project, which is controlled by Russia's OAO Novatek (BBB-/Stable).
While pricing for the Gazprom deal has yet to be announced, it appears from numbers reported in the media that the price will likely be at or above USD350 per thousand cubic metres (CNY2.2 per cubic meter), which is about 60% cheaper than China's current LNG imports and similar to the price for imports from central Asia. Although Fitch does not expect LNG imports to fall significantly because the use of natural gas in China is increasing, the agency believes the Gazprom deal will help reduce upward pressure on import prices in the medium term.
China has been and will continue to increase domestic gas selling prices that are controlled by the state, which should ensure profitability for operators like CNPC. For example, following gas price increases to-date, CNPC reported profits in its mid-stream gas operations in 4Q14 after losses during which high import costs sapped profitability.
For domestic gas producers, the Gazprom deal will provide incentive to further invest in natural gas exploration and production because the deal's expected price is higher than domestic production and as the authorities are expected to liberalise domestic natural gas pricing in the next couple of years. The indicative Gazprom deal price is at least 40% more than the current spot price for domestic gas, which ranges from CNY1 to CNY1.6 per cubic meter. Fitch believes the Gazprom deal is positive for CNPC, which holds over 60% of China's gas reserves and whose realised natural gas prices from its domestic productions in 2013 were around USD180 per thousand cubic metres.
CNPC will be responsible for building the pipelines and storage facilities in China under the deal. That the state has tasked CNPC to take on such important responsibility indicates that CNPC continues to play a strategic role in China's gas infrastructure, even though its subsidiary PetroChina said in May 2014 that it would eventually sell all of its stake in the First and the Second West-East Gas Pipeline to private investors.
To domestic city gas operators, especially in the north-eastern region, the deal soothes the concerns about gas supplies over the medium term. In Fitch's view, the agreement is positive for city gas operators such as China Resources Gas (BBB+/Stable), ENN Energy (BBB/Positive) and China Gas Holdings.
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Thursday, 22 December 22
RUSSIAN OIL EXPORTS CRATER BY 54% IN THE FIRST FULL WEEK OF THE EU'S EMBARGO AMID A SHORTAGE OF TANKERS WILLING TO CARRY CARGOES - BUSINESS INSIDER
Since the European Union imposed its seaborne crude sanctions, Russian oil exports have tumbled by more than half, according to data compiled by Bl ...
Thursday, 22 December 22
CHINA TIGHTENS VERIFICATION OF SHIPS’ ENERGY CONSUMPTION DATA - GARD
From 22 December 2022, ships trading to Chinese ports must record their energy consumption data in accordance with the requirements of their Ship E ...
Thursday, 22 December 22
AN OVERVIEW OF THE LNG MARKET - VESSELSVALUE
LNG values have continued to strengthen, spurred by skyrocketing earnings that have surpassed last year’s record breaking peaks. In November, ...
Thursday, 22 December 22
COKING COAL SLUMPS AS TALKS ON AUSTRALIA-CHINA TRADE RIFT LOOM - REUTERS
Chinese coking coal futures dropped more than 3 per cent on Tuesday (Dec 20), extending losses, as supply of the steelmaking input might increase i ...
Thursday, 22 December 22
COAL AND GAS PRICE CAPS MAY COMPOUND POLITICAL RISK FOR AUSTRALIAN CORPORATES - FITCH RATINGS
Australia’s introduction of temporary price caps on domestic sales of gas and coal used for electricity generation will probably have limited ...
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Showing 161 to 165 news of total 6871 |
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- Cement Manufacturers Association - India
- Independent Power Producers Association of India
- Directorate General of MIneral and Coal - Indonesia
- Indika Energy - Indonesia
- Tata Chemicals Ltd - India
- Wilmar Investment Holdings
- Marubeni Corporation - India
- The State Trading Corporation of India Ltd
- White Energy Company Limited
- Xindia Steels Limited - India
- Borneo Indobara - Indonesia
- Siam City Cement - Thailand
- Malabar Cements Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Siam City Cement PLC, Thailand
- Grasim Industreis Ltd - India
- Trasteel International SA, Italy
- GAC Shipping (India) Pvt Ltd
- Ambuja Cements Ltd - India
- The Treasury - Australian Government
- Sree Jayajothi Cements Limited - India
- PowerSource Philippines DevCo
- Ministry of Transport, Egypt
- Bhushan Steel Limited - India
- Global Coal Blending Company Limited - Australia
- Binh Thuan Hamico - Vietnam
- Simpson Spence & Young - Indonesia
- Eastern Energy - Thailand
- Global Green Power PLC Corporation, Philippines
- Krishnapatnam Port Company Ltd. - India
- Coalindo Energy - Indonesia
- Mercator Lines Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Formosa Plastics Group - Taiwan
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Vedanta Resources Plc - India
- Coal and Oil Company - UAE
- Salva Resources Pvt Ltd - India
- CNBM International Corporation - China
- San Jose City I Power Corp, Philippines
- Chettinad Cement Corporation Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Altura Mining Limited, Indonesia
- Manunggal Multi Energi - Indonesia
- Semirara Mining Corp, Philippines
- Electricity Generating Authority of Thailand
- Banpu Public Company Limited - Thailand
- Sakthi Sugars Limited - India
- SN Aboitiz Power Inc, Philippines
- Globalindo Alam Lestari - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- PNOC Exploration Corporation - Philippines
- Electricity Authority, New Zealand
- Toyota Tsusho Corporation, Japan
- CIMB Investment Bank - Malaysia
- Thai Mozambique Logistica
- Goldman Sachs - Singapore
- Offshore Bulk Terminal Pte Ltd, Singapore
- Indian Oil Corporation Limited
- VISA Power Limited - India
- Aditya Birla Group - India
- OPG Power Generation Pvt Ltd - India
- Lanco Infratech Ltd - India
- South Luzon Thermal Energy Corporation
- PTC India Limited - India
- Mintek Dendrill Indonesia
- Leighton Contractors Pty Ltd - Australia
- Energy Link Ltd, New Zealand
- Interocean Group of Companies - India
- Maheswari Brothers Coal Limited - India
- Kumho Petrochemical, South Korea
- Ind-Barath Power Infra Limited - India
- Posco Energy - South Korea
- Merrill Lynch Commodities Europe
- Alfred C Toepfer International GmbH - Germany
- Therma Luzon, Inc, Philippines
- Kaltim Prima Coal - Indonesia
- Directorate Of Revenue Intelligence - India
- LBH Netherlands Bv - Netherlands
- AsiaOL BioFuels Corp., Philippines
- Indo Tambangraya Megah - Indonesia
- Essar Steel Hazira Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Romanian Commodities Exchange
- Meralco Power Generation, Philippines
- Bhoruka Overseas - Indonesia
- Parry Sugars Refinery, India
- Kideco Jaya Agung - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Rashtriya Ispat Nigam Limited - India
- Energy Development Corp, Philippines
- Iligan Light & Power Inc, Philippines
- Australian Coal Association
- Rio Tinto Coal - Australia
- London Commodity Brokers - England
- McConnell Dowell - Australia
- Jindal Steel & Power Ltd - India
- Dalmia Cement Bharat India
- Ministry of Finance - Indonesia
- Gujarat Sidhee Cement - India
- GMR Energy Limited - India
- Antam Resourcindo - Indonesia
- Africa Commodities Group - South Africa
- Global Business Power Corporation, Philippines
- TeaM Sual Corporation - Philippines
- Parliament of New Zealand
- MS Steel International - UAE
- Vizag Seaport Private Limited - India
- Kartika Selabumi Mining - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Australian Commodity Traders Exchange
- Port Waratah Coal Services - Australia
- Sojitz Corporation - Japan
- Kapuas Tunggal Persada - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Cigading International Bulk Terminal - Indonesia
- Wood Mackenzie - Singapore
- Bayan Resources Tbk. - Indonesia
- Bulk Trading Sa - Switzerland
- Pipit Mutiara Jaya. PT, Indonesia
- Edison Trading Spa - Italy
- Oldendorff Carriers - Singapore
- Semirara Mining and Power Corporation, Philippines
- Makarim & Taira - Indonesia
- Thiess Contractors Indonesia
- Central Java Power - Indonesia
- Sindya Power Generating Company Private Ltd
- Singapore Mercantile Exchange
- Heidelberg Cement - Germany
- Billiton Holdings Pty Ltd - Australia
- Minerals Council of Australia
- Orica Australia Pty. Ltd.
- Anglo American - United Kingdom
- Bukit Makmur.PT - Indonesia
- Bhatia International Limited - India
- Indonesian Coal Mining Association
- Intertek Mineral Services - Indonesia
- Eastern Coal Council - USA
- Ministry of Mines - Canada
- Samtan Co., Ltd - South Korea
- Meenaskhi Energy Private Limited - India
- Bangladesh Power Developement Board
- Savvy Resources Ltd - HongKong
- Star Paper Mills Limited - India
- ASAPP Information Group - India
- GVK Power & Infra Limited - India
- Bukit Baiduri Energy - Indonesia
- Agrawal Coal Company - India
- Latin American Coal - Colombia
- Karaikal Port Pvt Ltd - India
- Metalloyd Limited - United Kingdom
- Sarangani Energy Corporation, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Indogreen Group - Indonesia
- Commonwealth Bank - Australia
- Pendopo Energi Batubara - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Carbofer General Trading SA - India
- Asmin Koalindo Tuhup - Indonesia
- Coastal Gujarat Power Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Economic Council, Georgia
- India Bulls Power Limited - India
- Orica Mining Services - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Madhucon Powers Ltd - India
- SMC Global Power, Philippines
- Tamil Nadu electricity Board
- Ceylon Electricity Board - Sri Lanka
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Aboitiz Power Corporation - Philippines
- Kobexindo Tractors - Indoneisa
- Riau Bara Harum - Indonesia
- Straits Asia Resources Limited - Singapore
- Georgia Ports Authority, United States
- Chamber of Mines of South Africa
- Larsen & Toubro Limited - India
- New Zealand Coal & Carbon
- Barasentosa Lestari - Indonesia
- Sical Logistics Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Central Electricity Authority - India
- IEA Clean Coal Centre - UK
- Standard Chartered Bank - UAE
- Power Finance Corporation Ltd., India
- GN Power Mariveles Coal Plant, Philippines
- Planning Commission, India
- Miang Besar Coal Terminal - Indonesia
- Baramulti Group, Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Medco Energi Mining Internasional
- Renaissance Capital - South Africa
- Kepco SPC Power Corporation, Philippines
- Timah Investasi Mineral - Indoneisa
- Bharathi Cement Corporation - India
- Mjunction Services Limited - India
- International Coal Ventures Pvt Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Mercuria Energy - Indonesia
- Uttam Galva Steels Limited - India
- Videocon Industries ltd - India
- ICICI Bank Limited - India
- Gujarat Electricity Regulatory Commission - India
- IHS Mccloskey Coal Group - USA
- Attock Cement Pakistan Limited
- SMG Consultants - Indonesia
- The University of Queensland
- Indian Energy Exchange, India
- Jaiprakash Power Ventures ltd
- Price Waterhouse Coopers - Russia
- European Bulk Services B.V. - Netherlands
- Deloitte Consulting - India
- Petron Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
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