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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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Monday, 16 June 14
API 8 CFR SOUTH CHINA COAL SWAPS FALL CONTINUES THIS PAST WEEK
COALspot.com: API 8 CFR South China Coal swaps for average Q3 14 deliveries lost 4.34 percent month on month and closed at US$ 71.05 per mt a ...
Sunday, 15 June 14
COAL FREIGHT RATES FALL FURTHER ON LACK OF DEMANDS - CAPT. REDDY
COALspot.com: The BDI softened this week as all segments fell this week. The Panamax sector being most affected. The Cape index was down 3.51 pct w ...
Friday, 13 June 14
US COAL PRODUCTION FELL 3% IN WEEK THAT ENDED JUNE 7, SAYS EIA
COALspot.com – United States the world's second largest coal producer, produced approximately 18.6 million short tons (mmst) of coal in a ...
Friday, 13 June 14
DRY BULK MARKET KEEPS ON FALLING, DESPITE RESPITE OF THE CAPESIZE SECTOR - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The dry bulk market has kept on its lacklustre performance overall, with the Baltic Dry Index (BDI) still hovering below the 1,000 point mark. Yest ...
Thursday, 12 June 14
INDONESIA SETS HBA FOR MONTH OF JUNE AT US$ 73.64
COALspot.com - The Ministry of Energy & Mineral Resources of Indonesia has revised up first time in last four months the coal bench mark price. ...
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Showing 3656 to 3660 news of total 6871 |
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- Kepco SPC Power Corporation, Philippines
- Directorate Of Revenue Intelligence - India
- Kartika Selabumi Mining - Indonesia
- Ministry of Finance - Indonesia
- Intertek Mineral Services - Indonesia
- Meralco Power Generation, Philippines
- Deloitte Consulting - India
- Straits Asia Resources Limited - Singapore
- Malabar Cements Ltd - India
- Chamber of Mines of South Africa
- Chettinad Cement Corporation Ltd - India
- Ind-Barath Power Infra Limited - India
- Latin American Coal - Colombia
- AsiaOL BioFuels Corp., Philippines
- VISA Power Limited - India
- Parry Sugars Refinery, India
- Minerals Council of Australia
- Tata Chemicals Ltd - India
- Ministry of Mines - Canada
- Kalimantan Lumbung Energi - Indonesia
- Coal and Oil Company - UAE
- Anglo American - United Kingdom
- Neyveli Lignite Corporation Ltd, - India
- Energy Link Ltd, New Zealand
- Mjunction Services Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Indian Oil Corporation Limited
- The University of Queensland
- LBH Netherlands Bv - Netherlands
- Indian Energy Exchange, India
- Bahari Cakrawala Sebuku - Indonesia
- Coastal Gujarat Power Limited - India
- ASAPP Information Group - India
- Sarangani Energy Corporation, Philippines
- Bhushan Steel Limited - India
- Kobexindo Tractors - Indoneisa
- IEA Clean Coal Centre - UK
- Timah Investasi Mineral - Indoneisa
- Renaissance Capital - South Africa
- Antam Resourcindo - Indonesia
- Kumho Petrochemical, South Korea
- Cigading International Bulk Terminal - Indonesia
- European Bulk Services B.V. - Netherlands
- IHS Mccloskey Coal Group - USA
- Rashtriya Ispat Nigam Limited - India
- GVK Power & Infra Limited - India
- Ministry of Transport, Egypt
- Videocon Industries ltd - India
- Indogreen Group - Indonesia
- Uttam Galva Steels Limited - India
- Jindal Steel & Power Ltd - India
- Meenaskhi Energy Private Limited - India
- Lanco Infratech Ltd - India
- Eastern Coal Council - USA
- Ambuja Cements Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sojitz Corporation - Japan
- Trasteel International SA, Italy
- Carbofer General Trading SA - India
- Economic Council, Georgia
- Bukit Asam (Persero) Tbk - Indonesia
- Goldman Sachs - Singapore
- Sakthi Sugars Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- McConnell Dowell - Australia
- London Commodity Brokers - England
- Banpu Public Company Limited - Thailand
- Interocean Group of Companies - India
- Central Electricity Authority - India
- Samtan Co., Ltd - South Korea
- Bangladesh Power Developement Board
- Tamil Nadu electricity Board
- Independent Power Producers Association of India
- SN Aboitiz Power Inc, Philippines
- OPG Power Generation Pvt Ltd - India
- Attock Cement Pakistan Limited
- Global Business Power Corporation, Philippines
- Standard Chartered Bank - UAE
- Sindya Power Generating Company Private Ltd
- Siam City Cement PLC, Thailand
- Directorate General of MIneral and Coal - Indonesia
- Karaikal Port Pvt Ltd - India
- Indika Energy - Indonesia
- Indonesian Coal Mining Association
- Salva Resources Pvt Ltd - India
- Mintek Dendrill Indonesia
- Aboitiz Power Corporation - Philippines
- Grasim Industreis Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- CNBM International Corporation - China
- Manunggal Multi Energi - Indonesia
- Agrawal Coal Company - India
- Global Green Power PLC Corporation, Philippines
- Madhucon Powers Ltd - India
- White Energy Company Limited
- Petrochimia International Co. Ltd.- Taiwan
- Essar Steel Hazira Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Eastern Energy - Thailand
- Coalindo Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Heidelberg Cement - Germany
- Maharashtra Electricity Regulatory Commission - India
- Price Waterhouse Coopers - Russia
- Medco Energi Mining Internasional
- Siam City Cement - Thailand
- Therma Luzon, Inc, Philippines
- Edison Trading Spa - Italy
- Semirara Mining Corp, Philippines
- Central Java Power - Indonesia
- Orica Australia Pty. Ltd.
- Baramulti Group, Indonesia
- Bayan Resources Tbk. - Indonesia
- Toyota Tsusho Corporation, Japan
- Orica Mining Services - Indonesia
- Billiton Holdings Pty Ltd - Australia
- PowerSource Philippines DevCo
- Semirara Mining and Power Corporation, Philippines
- Rio Tinto Coal - Australia
- Kapuas Tunggal Persada - Indonesia
- The State Trading Corporation of India Ltd
- TNB Fuel Sdn Bhd - Malaysia
- Asmin Koalindo Tuhup - Indonesia
- Bukit Makmur.PT - Indonesia
- International Coal Ventures Pvt Ltd - India
- Larsen & Toubro Limited - India
- Planning Commission, India
- Ceylon Electricity Board - Sri Lanka
- Savvy Resources Ltd - HongKong
- Binh Thuan Hamico - Vietnam
- Miang Besar Coal Terminal - Indonesia
- Makarim & Taira - Indonesia
- Kideco Jaya Agung - Indonesia
- South Luzon Thermal Energy Corporation
- MS Steel International - UAE
- Simpson Spence & Young - Indonesia
- Maheswari Brothers Coal Limited - India
- SMG Consultants - Indonesia
- Merrill Lynch Commodities Europe
- TeaM Sual Corporation - Philippines
- Parliament of New Zealand
- New Zealand Coal & Carbon
- Pendopo Energi Batubara - Indonesia
- GMR Energy Limited - India
- Holcim Trading Pte Ltd - Singapore
- Petron Corporation, Philippines
- Commonwealth Bank - Australia
- Gujarat Sidhee Cement - India
- Australian Coal Association
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- The Treasury - Australian Government
- Bulk Trading Sa - Switzerland
- Kohat Cement Company Ltd. - Pakistan
- Xindia Steels Limited - India
- Energy Development Corp, Philippines
- San Jose City I Power Corp, Philippines
- Bukit Baiduri Energy - Indonesia
- CIMB Investment Bank - Malaysia
- Altura Mining Limited, Indonesia
- Vizag Seaport Private Limited - India
- India Bulls Power Limited - India
- PTC India Limited - India
- Formosa Plastics Group - Taiwan
- Wilmar Investment Holdings
- Indo Tambangraya Megah - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- ICICI Bank Limited - India
- Thiess Contractors Indonesia
- Kaltim Prima Coal - Indonesia
- Sical Logistics Limited - India
- Cement Manufacturers Association - India
- Star Paper Mills Limited - India
- Georgia Ports Authority, United States
- Marubeni Corporation - India
- Australian Commodity Traders Exchange
- Port Waratah Coal Services - Australia
- Iligan Light & Power Inc, Philippines
- Mercuria Energy - Indonesia
- Singapore Mercantile Exchange
- Electricity Authority, New Zealand
- Alfred C Toepfer International GmbH - Germany
- Metalloyd Limited - United Kingdom
- Mercator Lines Limited - India
- Gujarat Electricity Regulatory Commission - India
- Globalindo Alam Lestari - Indonesia
- Wood Mackenzie - Singapore
- PetroVietnam Power Coal Import and Supply Company
- Barasentosa Lestari - Indonesia
- GAC Shipping (India) Pvt Ltd
- Krishnapatnam Port Company Ltd. - India
- Africa Commodities Group - South Africa
- PNOC Exploration Corporation - Philippines
- Posco Energy - South Korea
- Global Coal Blending Company Limited - Australia
- Sree Jayajothi Cements Limited - India
- Bharathi Cement Corporation - India
- Thai Mozambique Logistica
- Leighton Contractors Pty Ltd - Australia
- Gujarat Mineral Development Corp Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Dalmia Cement Bharat India
- Vijayanagar Sugar Pvt Ltd - India
- Electricity Generating Authority of Thailand
- Bhatia International Limited - India
- Vedanta Resources Plc - India
- Jaiprakash Power Ventures ltd
- SMC Global Power, Philippines
- Aditya Birla Group - India
- Oldendorff Carriers - Singapore
- Borneo Indobara - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Riau Bara Harum - Indonesia
- Bhoruka Overseas - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Power Finance Corporation Ltd., India
- Romanian Commodities Exchange
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