SZ Energy News: Industry News, Stories Analysis and Editorial
Get Free SZ’s Newsletter
News2-shale gas
Get SZ's China industry news in your inbox each day. It's free. Subscribe Today.
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. 16, 2014]  China finally realized its goal of finding petroleum reserves in deepwater acreage when state-owned China National Offshore Corp. (CNOOC) successfully drilled the Lingshui 17-2-1 exploration well at the Lingshui 17-2 gas field in the South China Sea, loca
[Oct. 15, 2014]  CNOOC Limited announced that its Enping 24-2 oilfield has commenced production.Enping 24-2 oilfield is located in the Pearl River Mouth Basin of the South China Sea with an average water depth of approximately 86 - 96 m. The main production facilities inc
[Oct. 15, 2014]  China National Oil Co. said its latest startup in the South China Sea will reach a peak production rate of 40,000 barrels per day within three years.CNOOC said it started production at the Enping 24-2 field in the shallow waters in the Pearl River basin o
China Refining
[Oct. 21, 2014]  Crude-oil futures found some temporary support in Asian trade Tuesday after China’s economic data came in slightly better than expected.On the New York Mercantile Exchange, light, sweet crude futures for delivery in November traded at $83.01 a barrel at 0
[Oct. 21, 2014]  Top Chinese refiner Sinopec Corp is expected to process 4.3 percent more crude oil in 2015 versus this year at about 4.9 million barrels per day (bpd), industry consultancy ICIS C1 Energy reported on Monday.The figures compare to growth of just 0.3 percen
[Oct. 21, 2014]  Crude oil’s steepest crash in almost six years is throwing up a new challenge for China’s refiners -- a plunge in the value of their stockpiles.The oil price drop is adding up to a triple whammy for earnings prospects through the end of the ye
China Biofuels, Green Energy
[Jul. 16, 2014]  China National Petroleum Corporation (CNPC) announced Tuesday that the petroleum drilling and exploration operation of Zhongjiannan Project in the South China Sea was smoothly completed on schedule July 15 with oil and gas shows found. In accordance
[May 22, 2014]  Although exact details are unclear, Russian and Chinese media outlets are reporting that ten years of negotiations surrounding the sale of natural gas from Siberia to China have finally concluded at the tail end of a state visit by President Vladimir Puti
[May 19, 2014]  Western efforts to punish Russia for its military adventures in eastern Ukraine look set to backfire in spectacular fashion.This coming week, Russian President Vladimir Putin is poised to unveil a very big prize: access to the world’s largest, fas
China Gas , LNG / LPG
[Oct. 21, 2014]  China’s first commercial shale gas development in the Fuling area of Chongqing will not be a one-off, according to industry experts. They expressed confidence that other shale sweet spots will soon be unearthed in southwest China.The project –
[Oct. 21, 2014]  China’s tightening environmental policies will not result in the decline of coal in the country, according to new analysis by Wood Mackenzie. Its new report – “A moving target: assessing the impact of China’s environmental policies
[Oct. 21, 2014]  China’s demand for gas will increase to 335 billion cubic metres per year by 2017, as a result of favourable environmental policies aimed at cleaning up the country’s toxic smog, energy consultancy Wood Mackenzie said in a report released on M
China Pipelines
[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
[Oct. 15, 2014]  Russia has signed a series of deals with China to ease the effects of sanctions over the Ukraine crisis. As reported in the Wall Street Journal, the Russia-China agreements are seen as evidence of Moscow’s efforts to focus on the East. Russian President V
[Oct. 14, 2014]  Russia has found a new export market in the world’s largest energy consumer, China. The nations had signed a natural gas supply deal in May and the recent approval by the government to PetroChina Co Ltd. ’s ( PTR ) parent company, China National Petroleum
China Terminals & Storage
[Aug. 20, 2014]   The Chinese government has rejecting an environmental impact assessment for an $84 million commercial crude oil storage base planned by Sinopec Corp citing insufficient measures to cut potential pollution.The proposed second phase of Baishawan com
[Aug. 15, 2014]  Singapore’s Universal Terminal, backed by China’s state oil giant PetroChina , plans to raise as much as S$1 billion ($800 million) in an initial public offering of units of a business trust, two sources with direct knowledge of the matter told Reuters
[Mar. 28, 2014]  New loan issuance affects the oil tanker shipping industry One of the key indicators that grabs analysts’ attention is China’s new loans. Issuing new loans is an important way of stimulating economic growth, as it increases demand. However, ex
China Petrochemical
[Oct. 17, 2014]  No big greeting hugs, no animals from the bush, practice good hygiene - Chinese companies in Africa are on high alert for the deadly Ebola virus and are taking strict precautions to protect employees from infection. Sinopec has established an emergen
[Oct. 13, 2014]  Outbound acquisitions by the mainland’s state-owned oil and gas majors have fallen after a buying spree over the past few years, and officials are cautious on doing deals amid a protracted anti-corruption campaign by the central authorities in Beijing.But
[Oct. 8, 2014]  With its market study "Propylene Value Chain China", Ceresana is setting new standards. For the very first time this novelty product provides complete transparency regarding current and future development of the entire propylene value chain. Att
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. 21, 2014]   Sinopec Yizheng Chemical Fibre Co Ltd Says asset restructuring plan gets government approval   (  2014-10-21)
[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. 17, 2014]  Crude futures slid on Thursday after data revealed U.S. inventories rose more than markets were expecting last week, while soft Chinese inflation figures softened the commodity as well by stoking concerns that global supply far outstrips demand.Crude fall
China Govt & Regulatory
[Oct. 13, 2014]  Raft of deals expected to be inked in MoscowChina and Russia are likely to sign up to 50 agreements on energy, finance, aerospace, railways and other fields, as Premier Li Keqiang arrived in Moscow on Sunday to seek long-term, stable and sustainable coope
[Oct. 10, 2014]  There is no reason for China to join Western countries in the "war" against the Islamic State group no matter what the Western media say, because it has a far smaller stake than the West in the Middle East. The Western media say China should joi
[Oct. 10, 2014]  A lawsuit accusing China’s largest oil refiner of muscling a start-up out of the market has turned a spotlight on the country’s biodiesel policy, once trumpeted as a way to cut dependence on imported crude oil.China is the world’s sixth-
Contact SZ
101,No. 19, Lane 111, Fudu Rd
Shanghai, 201100, China
Tel: (86 21) 54383583
ICP 07002695