November 09, 2009
Sinopec - ExxonMobile LNG Deal
China's biggest refiner Sinopec (NYSE:SNP) is finalizing a deal with ExxonMobil to buy nearly a third of the production from a new Liqufied Natural Gas (LNG) works in Papua New Guinea. Sinopec would get 2 million tons per year of LNG and build a terminal in Qingdao, Shandong Province. Incidentally, Sinopec will offer this week 15 billion Yuan (over $2 billion US dollars) in 1-year corporate bonds. Gas use in China is expected to triple over the next 10 years and Sinopec's deal comes just as the head of China's National Energy Adminstration revealed the government wants to close the four remaining coal-fired power plants around Beijing. Beijing will be served by new gas pipelines from Shaanxi Province. It seems reasonable to speculate that Sinopec may bring gas from its new Qingdao terminal to the Chinese capital....
Labels: energy security, foreign investment, gas
# posted by Sinomania! : 11/09/2009 12:24:00 PM
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