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Industry Headlines
[Sept. 30, 2014] will stop updating during Oct 1st to 7th.
[Aug. 7, 2014]  China has halved the quantum of shale gas it expects to produce by 2020 after early exploration efforts to unlock the unconventional fuel proved challenging, according to an industry website and a government source.China, believed to hold the world’s l
[Jul. 14, 2014]  HOW does conventional wisdom – i.e. the opinion of the majority – become conventional wisdom? This is a subject that the blog pondered over the last few days as it wandered around Euro Disney. Unfortunately, Mickey, Donald and his pals weren’t able to give us an answer. The reason why we dwelled so much on this subject was because of our post last week on coal-to-olefins (CTO) in China. We feel, like many others perhaps should feel, that we might have have been suckered-in to believing that water was the Achilles Heel of the process. If water is not really a challenge, and much of the planned new US supply come on-stream towards the end of this decade, here is a scenario: ?US petrochemicals companies suffer severe oversupply distress, which will either be short term or long term, depending on your view of the global economy. ?This could enable China to buy-up distressed US petrochemicals assets. It has ample reserves to go on a buying spree, especially if it reduces its holdings of US Treasuries. Back to our main point about conventional wisdom. Perhaps some of those at the top are happy to continue to peddle the CTO water challenge fallacy because they have pinned their career success on huge ethane-based capacity additions. When things go wrong, they might have already retired or moved on to other positions and so there is nothing in it for them to rock the boat. Less senior people worry that if they, too, rock the boat by expressing their doubts, on either CTO supply or more importantly the macro-economic fundamentals, they will be committing career suicide. It is easier to follow the herd and say, “we didn’t see this coming” when things go wrong, rather than be an outlier. Here is a reminder, from this excellent article by my colleague Nigel Davis, on the scale of what’s being planned in the US: ?As many as 11 new crackers could be built in the US before the end of the decade. Add the capacity from eight expansions for existing facilities announced to date and the potential capacity increase is 51% or 13.9m tonnes. US polyethylene capacity could rise by 47%, or 7.1m tonnes. ?Even if we tinker with some of the announced US cracker on-stream dates (see the above estimate, from ICIS Consulting, of actual, as opposed to announced, start-up timings), the big slug of ethylene capacity – as much as 7m tonnes – would be available after 2017. Tellingly, the ‘build-out’ – between 2017 and 2020 – is far above that in past ethylene cycles.
China Exploration
[Oct. 30, 2014]   China’s top offshore oil and gas explorer CNOOC Ltd posted on Wednesday lower revenue for the third quarter on weaker crude prices and flat production growth due to a slight dip in overseas output.Revenue fell 4.6 percent year on year to 53.6 billio
[Oct. 29, 2014]  An engineering and construction unit under China’s Sinopec Group has started building pipelines for Iraq’s Maysan project that will help raise the oilfield’s production to 460,000 barrels per day (bpd) by 2016, an industry website reported on Tuesday.Iraq
[Oct. 29, 2014]  A high impact offshore exploration program in China earmarked for next year.China National Offshore Oil Corp (CNOOC) (HKG:0883) (market cap. A$80 billion) is the operator with 51%, with Primeline Energy Holdings (CVE:PHE) holding a 36.75% stake.The LS36-1
China Refining
[Oct. 31, 2014]  PetroChina’s third-quarter net profit fell by 6.2% year on year to yuan (CNY) 27.9bn ($4.6bn) amid weakness in chemical markets and poor demand for petroleum products, the Chinese energy firm said late on Wednesday.Revenues for the three months to S
[Oct. 31, 2014]  State-controlled PetroChina Co. Wednesday posted a 6.2% decline in its third-quarter net profit on lower contribution from upstream businesses amid weaker oil demand.China’s largest oil company by production capacity said third-quarter net profit fe
[Oct. 31, 2014]  Yanbu Aramco Sinopec Refining Co (Yasref) refinery started trial runs in September and originally planned its first exports by November.The first fuel exports from a major new Saudi Arabian-Chinese refinery will load in December, slightly later than expec
China Biofuels, Green Energy
[Oct. 24, 2014]  Two years ago, a Boeing 787 Dreamliner became the first biofuel-powered aircraft to cross the Pacific Ocean. It was actually running on a biofuel/regular jet fuel mix, with the biofuel derived mainly from used cooking oil. Now, in the interest of ensuring
[Oct. 23, 2014]  Boeing and Commercial Aircraft Corp. of China (COMAC) opened a demonstration facility that will turn waste cooking oil, or "gutter oil," into sustainable aviation biofuel on Wednesday.Boeing and COMAC are sponsoring the China-U.S. Aviation Biofu
[Oct. 23, 2014]  China has opened a demonstration facility converting waste cooking oil, or gutter oil, into sustainable aviation biofuel in a project sponsored by Boeing and Commercial Aircraft Crop of China (COMAC), Boeing announced Wednesday."Strong and continuing
China Gas , LNG / LPG
[Oct. 31, 2014]  China’s first floating liquified natural gas (LNG) terminal completed its first phase of construction in the northern port city of Tianjin on Tuesday.Covering an area of 75 hectares and designed to supply 3 billion cubic meters of gas each year, it can
[Oct. 31, 2014]  China is increasing its market share in new build liquefied natural gas (LNG) carriers over the next five years as it continues to sign contracts to import LNG, reports Gasworld.  “The use of LNG as fuel for ships is rising rapidly in China
[Oct. 31, 2014]  Shale gas and its impact on China was the hot topic at the FlexPO conference, held Oct. 22-24 in Shanghai.While the possible reserves of shale gas in China are promising, China’s shale gas industry has been slow to develop because of technology, s
China Pipelines
[Oct. 23, 2014]  Berdymukhamedov went on adding that the construction of the fourth - D branch of the Turkmenistan-China gas pipeline is supposed to be accomplished in 2016.The China National Petroleum Corporation (CNPC) has been purchasing gas from the Central Asia since
[Oct. 22, 2014]  The construction of the 4th branch (D) of the Turkmenistan-China gas pipeline is planned to be completed in 2016, Turkmen President Gurbanguly Berdimuhamedov said Oct. 21.President Berdimuhamedov made the remarks while delivering a speech at a meeting of
[Oct. 15, 2014]  A contract on gas supplies to China on the eastern route came into effect on October 13 after the intergovernmental agreement was signed, Gazprom CEO Alexei Miller said on Monday. “It’s today that the agreement on gas supplies, the agreement o
China Terminals & Storage
[Oct. 31, 2014]  China National Offshore Oil Corp. (CNOOC) has finished building the first phase of its floating LNG terminal in the northern port city of Tianjin, the company has announced.The first phase consisted of a dock, two 30,000 cubic metre storage tanks, gas pip
[Oct. 31, 2014]  China’s Strategic Petroleum Reserve (SPR) project, which began in 2004, has recently experienced accelerated progress, with the National Development and Reform Commission (NDRC) just announcing the completion of a second-stage plan to build an oil reserve
[Oct. 27, 2014]   Tanzania’s new found oil and gas reserves has seen it become a hive of activity in the global energy industry with several world renowned multi-nationals jostling for a stake in the east African country’s lucrative mineral resource.This
China Petrochemical
[Oct. 31, 2014]  PetroChina’s third-quarter net profit fell by 6.2% year on year to yuan (CNY) 27.9bn ($4.6bn) amid weakness in chemical markets and poor demand for petroleum products, the Chinese energy firm said late on Wednesday.Revenues for the three months to S
[Oct. 30, 2014]  China’s polyolefin suppliers are shifting from using oil to coal or natural gas as their feedstock, according to experts at the FlexPO conference, held Oct. 22-24 in Shanghai.Qi Min, director of ICIS China said some suppliers in Asia are closing
[Oct. 29, 2014]  Hebei Zhongjie Petrochemical Company Ltd., which operates as a subsidiary of CNOOC, signed a contract for a one million two hundred thousand tons per year refinery, utilizing the Genoil Upgrading Process. The Refinery will produce finished products for sa
China Commodities
[Oct. 21, 2014]  The Dubai Mercantile Exchange and the fledgling Shanghai International Energy Exchange on Monday announced a deal to cooperate on a much-needed new Asian benchmark crude oil futures contract.But Chinese authorities have not yet approved the Shanghai crude
[Oct. 13, 2014]  China’s crude oil imports in September rose 7.4% year on year to 27.58 million mt or an average 6.74 million b/d, the second highest on record, preliminary data released Monday by the General Administration of Customs showed. Crude imports were last highe
[Sept. 22, 2014]  Major Chinese oil company Sinopec Group on Thursday said it has taken over 67.5 percent of the A-shares of drilling equipment maker Kingdream.Sinopec has agreed for Shenzhen-listed Kingdream Public Limited Company to raise funds through private offerin
China Finance & Acquisition
[Oct. 30, 2014]   PetroChina Co Ltd* Says Q3 net profit 27.9 billion yuan (4.57 billion US dollar) versus net profit of 29.77 billion yuan a year ago* Says Jan-Sept net profit 96.0 billion yuan versus net profit of 29.77 billion yuan a year ago* Says Q3 turnover 600.
[Oct. 30, 2014]  China Aviation Oil (Singapore) is seeking up to2.056 million barrels of jet fuel for loading over November to December, a tender documentshowed on Wednesday.    The company is seeking four cargoes of 240,000 to 300,000 barrels each of jet f
[Oct. 30, 2014]  China’s top offshore oil and gas explorer CNOOC Ltd posted on Wednesday roughly flat production for the third quarter as its overseas output dipped slightly due to maintenance at some fields. Production reached 103.0 million barrels of oil equivalent (boe
China Govt & Regulatory
[Oct. 30, 2014]  On Tuesday, India pledged to supply naval vessels to Vietnam and also secured oil exploration rights from Hanoi in parts of the contentious South China Sea, in moves that promise to ruffle a few feathers in Beijing.The announcement came during Vietnamese
[Oct. 29, 2014]   China on Tuesday warned India against meddling in its dispute with Vietnam over islands in the South China Sea. It also opposed the latest move by the Vietnamese government inviting India to carry out oil exploration in South China Sea."With re
[Oct. 27, 2014]   On the eve of its Prime Minister’s visit here, Vietnam today favoured greater participation by Indian companies in oil and gas exploration projects in South China Sea, a huge source of hydrocarbons, and promised to extend full security to them
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