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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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Friday, 22 March 24
INDONESIA APPROVES 922.14 MLN T COAL PRODUCTION QUOTA FOR 2024, ABOVE TARGET - REUTERS
Indonesia has approved coal production quotas totalling 922.14 million metric tons for 2024, Bambang Suswantono, a senior official at the mining mi ...
Friday, 22 March 24
CHINA COAL INDUSTRY GROUP EXPECTS OUTPUT GROWTH TO SLOW IN 2024 - REUTERS
China’s coal output is expected to increase 36 million metric tons, or 0.8%, to about 4.7 billion tonnes in 2024, a Chinese coal industry gro ...
Monday, 18 March 24
THREE KEY TAKEAWAYS FROM OUR EUROPE GAS MARKETS SHORT-TERM OUTLOOK Q1 2024 - WOOD MACKENZIE
European gas prices are currently back to pre-crisis levels, but with a complex series of factors affecting future supply and demand, are they set ...
Wednesday, 06 March 24
INDONESIA AIMS TO FINISH MINING OUTPUT QUOTAS APPROVAL BY END-MARCH, OFFICIAL SAYS - REUTERS
Indonesia’s has approved the mining production quotarequests from more than 120mineral companies and aims to complete the approval process th ...
Monday, 04 March 24
IS YOUR GUARANTEE A GUARANTEE? NOTE TO SHIPOWNERS - GARD
KNOWLEDGE TO ELEVATE
The law of guarantees is not always obvious or easy to understand without proper guidance. This article clarifies the dif ...
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Showing 26 to 30 news of total 6871 |
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- San Jose City I Power Corp, Philippines
- Price Waterhouse Coopers - Russia
- Wood Mackenzie - Singapore
- Leighton Contractors Pty Ltd - Australia
- Kideco Jaya Agung - Indonesia
- Madhucon Powers Ltd - India
- Latin American Coal - Colombia
- Bahari Cakrawala Sebuku - Indonesia
- Posco Energy - South Korea
- Vedanta Resources Plc - India
- Krishnapatnam Port Company Ltd. - India
- TeaM Sual Corporation - Philippines
- India Bulls Power Limited - India
- Sarangani Energy Corporation, Philippines
- GVK Power & Infra Limited - India
- Interocean Group of Companies - India
- Singapore Mercantile Exchange
- Sojitz Corporation - Japan
- Barasentosa Lestari - Indonesia
- Planning Commission, India
- Makarim & Taira - Indonesia
- Kaltim Prima Coal - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Siam City Cement - Thailand
- Tata Chemicals Ltd - India
- CIMB Investment Bank - Malaysia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Economic Council, Georgia
- Samtan Co., Ltd - South Korea
- Pendopo Energi Batubara - Indonesia
- Jindal Steel & Power Ltd - India
- Kepco SPC Power Corporation, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Chettinad Cement Corporation Ltd - India
- PowerSource Philippines DevCo
- Orica Australia Pty. Ltd.
- Commonwealth Bank - Australia
- Bhatia International Limited - India
- Videocon Industries ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Georgia Ports Authority, United States
- GN Power Mariveles Coal Plant, Philippines
- Standard Chartered Bank - UAE
- Bhoruka Overseas - Indonesia
- Deloitte Consulting - India
- Bangladesh Power Developement Board
- Chamber of Mines of South Africa
- Banpu Public Company Limited - Thailand
- IHS Mccloskey Coal Group - USA
- Agrawal Coal Company - India
- Borneo Indobara - Indonesia
- Central Electricity Authority - India
- Globalindo Alam Lestari - Indonesia
- Bukit Makmur.PT - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Indian Oil Corporation Limited
- Formosa Plastics Group - Taiwan
- Anglo American - United Kingdom
- Attock Cement Pakistan Limited
- International Coal Ventures Pvt Ltd - India
- Mjunction Services Limited - India
- Aditya Birla Group - India
- Bukit Baiduri Energy - Indonesia
- ASAPP Information Group - India
- Grasim Industreis Ltd - India
- OPG Power Generation Pvt Ltd - India
- Romanian Commodities Exchange
- Kumho Petrochemical, South Korea
- Miang Besar Coal Terminal - Indonesia
- Ministry of Transport, Egypt
- Directorate Of Revenue Intelligence - India
- Toyota Tsusho Corporation, Japan
- Electricity Generating Authority of Thailand
- Directorate General of MIneral and Coal - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ministry of Mines - Canada
- Eastern Coal Council - USA
- European Bulk Services B.V. - Netherlands
- Gujarat Sidhee Cement - India
- Orica Mining Services - Indonesia
- McConnell Dowell - Australia
- Goldman Sachs - Singapore
- Independent Power Producers Association of India
- Meenaskhi Energy Private Limited - India
- Tamil Nadu electricity Board
- Lanco Infratech Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Timah Investasi Mineral - Indoneisa
- Manunggal Multi Energi - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Karaikal Port Pvt Ltd - India
- Essar Steel Hazira Ltd - India
- The University of Queensland
- Oldendorff Carriers - Singapore
- PTC India Limited - India
- Salva Resources Pvt Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Jorong Barutama Greston.PT - Indonesia
- Maheswari Brothers Coal Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Simpson Spence & Young - Indonesia
- IEA Clean Coal Centre - UK
- Australian Coal Association
- Alfred C Toepfer International GmbH - Germany
- Mercator Lines Limited - India
- Gujarat Electricity Regulatory Commission - India
- White Energy Company Limited
- GAC Shipping (India) Pvt Ltd
- Pipit Mutiara Jaya. PT, Indonesia
- Antam Resourcindo - Indonesia
- Dalmia Cement Bharat India
- Global Coal Blending Company Limited - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bhushan Steel Limited - India
- Straits Asia Resources Limited - Singapore
- Port Waratah Coal Services - Australia
- Central Java Power - Indonesia
- New Zealand Coal & Carbon
- Kartika Selabumi Mining - Indonesia
- Sical Logistics Limited - India
- Bharathi Cement Corporation - India
- Vizag Seaport Private Limited - India
- Marubeni Corporation - India
- Indika Energy - Indonesia
- Eastern Energy - Thailand
- Siam City Cement PLC, Thailand
- Heidelberg Cement - Germany
- Global Green Power PLC Corporation, Philippines
- Minerals Council of Australia
- Savvy Resources Ltd - HongKong
- Larsen & Toubro Limited - India
- SN Aboitiz Power Inc, Philippines
- Indo Tambangraya Megah - Indonesia
- Bayan Resources Tbk. - Indonesia
- Indogreen Group - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Altura Mining Limited, Indonesia
- Mintek Dendrill Indonesia
- Coastal Gujarat Power Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Semirara Mining and Power Corporation, Philippines
- Thiess Contractors Indonesia
- Uttam Galva Steels Limited - India
- CNBM International Corporation - China
- Neyveli Lignite Corporation Ltd, - India
- Jaiprakash Power Ventures ltd
- Trasteel International SA, Italy
- Rio Tinto Coal - Australia
- MS Steel International - UAE
- SMG Consultants - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- AsiaOL BioFuels Corp., Philippines
- Ambuja Cements Ltd - India
- Renaissance Capital - South Africa
- Intertek Mineral Services - Indonesia
- Aboitiz Power Corporation - Philippines
- GMR Energy Limited - India
- Carbofer General Trading SA - India
- Energy Link Ltd, New Zealand
- Kapuas Tunggal Persada - Indonesia
- Edison Trading Spa - Italy
- Ceylon Electricity Board - Sri Lanka
- Ind-Barath Power Infra Limited - India
- London Commodity Brokers - England
- LBH Netherlands Bv - Netherlands
- Power Finance Corporation Ltd., India
- Energy Development Corp, Philippines
- Merrill Lynch Commodities Europe
- Xindia Steels Limited - India
- SMC Global Power, Philippines
- Parliament of New Zealand
- Parry Sugars Refinery, India
- Africa Commodities Group - South Africa
- Kobexindo Tractors - Indoneisa
- ICICI Bank Limited - India
- The Treasury - Australian Government
- Star Paper Mills Limited - India
- VISA Power Limited - India
- Indonesian Coal Mining Association
- Electricity Authority, New Zealand
- Metalloyd Limited - United Kingdom
- Global Business Power Corporation, Philippines
- Thai Mozambique Logistica
- Sakthi Sugars Limited - India
- South Luzon Thermal Energy Corporation
- Petron Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Mercuria Energy - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Cement Manufacturers Association - India
- Medco Energi Mining Internasional
- Wilmar Investment Holdings
- PNOC Exploration Corporation - Philippines
- Sindya Power Generating Company Private Ltd
- Iligan Light & Power Inc, Philippines
- Ministry of Finance - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Meralco Power Generation, Philippines
- Therma Luzon, Inc, Philippines
- Coalindo Energy - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Cigading International Bulk Terminal - Indonesia
- Bulk Trading Sa - Switzerland
- Binh Thuan Hamico - Vietnam
- Coal and Oil Company - UAE
- The State Trading Corporation of India Ltd
- Sinarmas Energy and Mining - Indonesia
- Baramulti Group, Indonesia
- Indian Energy Exchange, India
- Riau Bara Harum - Indonesia
- Australian Commodity Traders Exchange
- Karbindo Abesyapradhi - Indoneisa
- Malabar Cements Ltd - India
- Semirara Mining Corp, Philippines
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