DOCSLIB.ORG

Gas Distribution | CHINA

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Gas Distribution | CHINA Gas Distribution | CHINA POWER AND UTILITIES NOMURA INTERNATIONAL (HK) LIMITED Joseph Lam, CFA +852 2252 2106 [email protected] Ivan Lee, CFA +852 2252 6213 [email protected] BULLISH ANCHOR REPORT Consolidation cooking Stocks for action With gas supply bottlenecks to ease and gas penetration to improve, we see the We prefer CR Gas and BJE for their ingredients coming together for a key investment theme for 2011 and beyond: large visible growth story, long-term market project M&A and industry consolidation. After years of development, many leader and consolidator positions in the downstream projects in second-tier cities with immediate piped gas sources and good gas distribution sector. economics have been taken. The most appetising future opportunities are likely to come from medium- to large-sized projects and new projects along W-to-E pipelines II Price Stock Ticker Rating Price target & III and other new gas sources. We expect strong competition for these from well- Pure China plays connected SOEs. We see increased potential for industry consolidation over the next CR Gas 1193 HK BUY 11.72 14.80 five years, during which large companies with strong balance sheets, better access to Beijing Enterprises 392 HK BUY 52.05 70.50 Kunlun Energy 135 HK BUY 10.08 13.50 gas sources, and strong government support should outperform. Our top picks, CR ENN Energy 2688 HK NEUTRAL 25.35 24.10 Gas and Beijing Enterprises, will likely be major consolidators, we believe. We also like Towngas China 1083 HK NEUTRAL 3.56 3.40 Kunlun Energy, for its hybrid business model and potential asset injections from its China Gas 384 HK REDUCE 4.42 3.70 parent. Our BUY ratings also flow from strong earnings outlooks over the next 3 years: Indirect plays HK and China Gas 3 HK REDUCE 19.02 16.50 a 30.7% CAGR for CR Gas, 21.4% for Beijing Enterprises and 44.9% for Kunlun Note: local currency; pricing as of 2 November, 2010 Energy. We see a neutral impact from potential gas price reform (dollar margin Upgrade from Reduce to Neutral; Downgrade from Neutral maintained) and believe gas connection fees will stay in one form or another. Analysts Remain Bullish on China’s gas distribution sector Joseph Lam, CFA th +852 2252 2106 12 FYP – Government’s supportive stance on gas demand [email protected] Prepare for industry consolidation in the long run Ivan Lee, CFA +852 2252 6213 BUY CR Gas, Beijing Enterprises and Kunlun Energy [email protected] Nomura Anchor Reports examine the key themes and value drivers that underpin our sector views and stock recommendations for the next 6 to 12 months. Any authors named on this report are research analysts unless otherwise indicated. See the important disclosures and analyst certifications on pages 133 to 136. Nomura 8 November 2010 Gas Distribution | CHINA POWER AND UTILITIES NOMURA INTERNATIONAL (HK) LIMITED Joseph Lam, CFA +852 2252 2106 [email protected] Ivan Lee, CFA +852 2252 6213 [email protected] BULLISH Action Stocks for action We are Bullish given stable dollar margin and strong pent-up gas demand. We We prefer CR Gas and BJE for their expect more gas supply to flow to China to meet the strong demand, driven by the visible growth story, long-term market th 12 FYP. Any potential price reform should be neutral to gas distributors. More leader and consolidator positions in the acquisition and cooperation will happen but in the long run, industry consolidation is gas distribution sector. inevitable. CR Gas and Beijing Enterprises are the likely winners, in our view. Price Catalysts Stock Ticker Rating Price target Pure China plays M&A, gas pricing reform and the government’s supportive policies on gas usage. CR Gas 1193 HK BUY 11.72 14.80 Beijing Enterprises 392 HK BUY 52.05 70.50 Anchor themes Kunlun Energy 135 HK BUY 10.08 13.50 ENN Energy 2688 HK NEUTRAL 25.35 24.10 We are upbeat on China’s gas distribution sector, considering: 1) favourable Towngas China 1083 HK NEUTRAL 3.56 3.40 government policies; 2) robust demand growth underpinned by the transition to China Gas 384 HK REDUCE 4.42 3.70 clean and low-cost energy; 3) stable margins attributable to strong cost pass- Indirect plays HK and China Gas 3 HK REDUCE 19.02 16.50 through capability; and 4) potential upside from the new energy initiatives. Note: local currency; pricing as of 2 November, 2010 Upgrade from Reduce to Neutral; Downgrade from Neutral Consolidation cooking Analysts Joseph Lam, CFA Remain Bullish on China’s gas distribution sector +852 2252 2106 On assumption of coverage, we reaffirm our Bullish view on China’s gas [email protected] distribution sector as we expect: 1) substituted demand to support clean and low cost energy; 2) gas supply outweighing demand in 2012F, we estimate; Ivan Lee, CFA 3) strong 20%-plus pa gas demand growth; 4) neutral impact from potential gas +852 2252 6213 price reforms (dollar margin maintained); and 5) sustainable gas connection fees. [email protected] th 12 FYP – Government’s supportive stance on gas demand With the government’s targets to reduce carbon emissions by 40-45% by 2020, as depicted under the 12th Five-Year Plan (FYP), China plans to raise the natural gas proportion in the primary energy mix from 3.9% in 2009 to 8.3% in 2015F, representing a demand CAGR of 19.4%. This shows the government’s supportive stance in utilizing natural gas as a major clean energy source. Prepare for industry consolidation in the long run After 10 years of development, the majority of downstream projects at second-tier cities with immediate piped gas sources and good economics have been taken. We expect opportunities to come from medium- to large-sized projects and new projects along W-to-E pipelines II & III and other new gas sources; these are expected to see strong competition from well-connected SOEs. We see increased potential of industry consolidation over the next five years, during which large size companies with strong balance sheets, better access to gas sources and strong government support should outperform, in our view. BUY CR Gas, Beijing Enterprises and Kunlun Energy CR Gas and Beijing Enterprises will be major consolidators, in our view. CR Gas and Beijing Enterprises are our top picks. We also like Kunlun Energy for its hybrid (E&P and natural gas) business model and potential asset injections from parent. We downgrade China Gas to REDUCE, due to margin volatility on its LPG business, limited growth from its piped gas business and options dilution risk. We upgrade Towngas China to NEUTRAL due to fair valuation. HK & China Gas remains a REDUCE on demanding valuation. ENN is a NEUTRAL given rising new project risks. We also provide updates on 12 not rated listed gas plays in China. Nomura 1 8 November 2010 Gas Distribution | China Joseph Lam, CFA Contents Road to consolidation 4 Positive on China’s gas distribution sector 4 12th Five-Year Plan (FYP) to support growth 5 Road to consolidation 5 Phase II: Road to consolidation 6 Macro headwinds 6 The potential winners and losers are … 7 Natural gas – rising star in China’s energy pie 12 More gas supply flowing to China 13 Gas reserves in China 13 Future natural gas supply trend 13 Future sources of gas supply 14 New gas pipelines coming online 15 LNG terminals – ambitious construction plan 16 CBM – next source of gas supply 17 What is CBM? 17 Prospects 17 Shale gas – early stage of development; not main source in near future 18 What is shale gas? 18 Prospects 18 LPG – limited room for growth 19 Who will benefit more from improved gas supply? 20 Strong gas demand growth ahead 21 Primary energy consumption: world vs China 21 China gas demand growth: a 9.7% CAGR over 1990-2009 21 Strong gas demand growth ahead 22 More potential upside to our forecasts? 23 Adverse effects of cold winter – positive or negative? 23 Pricing – cost pass through to be maintained 24 June wellhead price hike – mostly passed through to end users 24 Expected upward trend for gas prices 25 New development in Hebei province 25 Potential gas pricing reform? 26 Connection fee? Construction fee? Capacity fee? 27 Connection fee: still in place in the next few years, to be abolished in the long run 27 Changes in accounting treatment; no significant impact to cash flow 28 Nomura 2 8 November 2010 Gas Distribution | China Joseph Lam, CFA Policy support for gas demand 29 12th Five-Year Plan (FYP) expectations 29 Size does matter 30 Phase I: Project acquisition / cooperation 30 Phase II: Road to consolidation 31 Macro headwinds to the gas sector 32 CPI concern – Difficulty in wellhead cost pass through? 32 Slowing GDP and industrial production growth 32 Interest rate hike risks? 32 BUY CR Gas, BJE and Kunlun Energy 33 Why has the sector underperformed in FY10 YTD? 33 Latest company views China Resources Gas 34 Beijing Enterprises Holdings 48 Kunlun Energy 56 ENN Energy Holdings 59 Towngas China 72 China Gas 81 Hong Kong and China Gas 93 Nuggets Sino Gas 96 China Oil and Gas 99 Pearl Oriental Innovation 102 Sino Oil and Gas 104 Suntien Green Energy 107 Tian Lun Gas 110 Zhengzhou Gas 112 Also see our Anchor Report: Asia Zhongyu Gas 115 Pacific Natural gas — Reaching for the blue sky (13 October, 2010) Enviro Energy 117 Tianjin Tianlian 119 China Energy 121 Green Dragon Gas 123 Sector valuation I 128 Sector valuation II 129 Sector valuation III 130 Nomura 3 8 November 2010 Gas Distribution | China Joseph Lam, CFA Executive summary Road to consolidation We have been Bullish on China’s gas distribution sector since 2008 (report “Sweet when ripe”, dated 27 November 2008).
Load more

Recommended publications
  • Changchun–Harbin Expressway Project
    Performance Evaluation Report Project Number: PPE : PRC 30389 Loan Numbers: 1641/1642 December 2006 People’s Republic of China: Changchun–Harbin Expressway Project Operations Evaluation Department CURRENCY EQUIVALENTS Currency Unit – yuan (CNY) At Appraisal At Project Completion At Operations Evaluation (July 1998) (August 2004) (December 2006) CNY1.00 = $0.1208 $0.1232 $0.1277 $1.00 = CNY8.28 CNY8.12 CNY7.83 ABBREVIATIONS AADT – annual average daily traffic ADB – Asian Development Bank CDB – China Development Bank DMF – design and monitoring framework EIA – environmental impact assessment EIRR – economic internal rate of return FIRR – financial internal rate of return GDP – gross domestic product ha – hectare HHEC – Heilongjiang Hashuang Expressway Corporation HPCD – Heilongjiang Provincial Communications Department ICB – international competitive bidding JPCD – Jilin Provincial Communications Department JPEC – Jilin Provincial Expressway Corporation MOC – Ministry of Communications NTHS – national trunk highway system O&M – operations and maintenance OEM – Operations Evaluation Mission PCD – provincial communication department PCR – project completion report PPTA – project preparatory technical assistance PRC – People’s Republic of China RRP – report and recommendation of the President TA – technical assistance VOC – vehicle operating cost NOTE In this report, “$” refers to US dollars. Keywords asian development bank, development effectiveness, expressways, people’s republic of china, performance evaluation, heilongjiang province, jilin province, transport Director Ramesh Adhikari, Operations Evaluation Division 2, OED Team leader Marco Gatti, Senior Evaluation Specialist, OED Team members Vivien Buhat-Ramos, Evaluation Officer, OED Anna Silverio, Operations Evaluation Assistant, OED Irene Garganta, Operations Evaluation Assistant, OED Operations Evaluation Department, PE-696 CONTENTS Page BASIC DATA v EXECUTIVE SUMMARY vii MAPS xi I. INTRODUCTION 1 A.
    [Show full text]
  • Study on Land Use/Cover Change and Ecosystem Services in Harbin, China
    sustainability Article Study on Land Use/Cover Change and Ecosystem Services in Harbin, China Dao Riao 1,2,3, Xiaomeng Zhu 1,4, Zhijun Tong 1,2,3,*, Jiquan Zhang 1,2,3,* and Aoyang Wang 1,2,3 1 School of Environment, Northeast Normal University, Changchun 130024, China; [email protected] (D.R.); [email protected] (X.Z.); [email protected] (A.W.) 2 State Environmental Protection Key Laboratory of Wetland Ecology and Vegetation Restoration, Northeast Normal University, Changchun 130024, China 3 Laboratory for Vegetation Ecology, Ministry of Education, Changchun 130024, China 4 Shanghai an Shan Experimental Junior High School, Shanghai 200433, China * Correspondence: [email protected] (Z.T.); [email protected] (J.Z.); Tel.: +86-1350-470-6797 (Z.T.); +86-135-9608-6467 (J.Z.) Received: 18 June 2020; Accepted: 25 July 2020; Published: 28 July 2020 Abstract: Land use/cover change (LUCC) and ecosystem service functions are current hot topics in global research on environmental change. A comprehensive analysis and understanding of the land use changes and ecosystem services, and the equilibrium state of the interaction between the natural environment and the social economy is crucial for the sustainable utilization of land resources. We used remote sensing image to research the LUCC, ecosystem service value (ESV), and ecological economic harmony (EEH) in eight main urban areas of Harbin in China from 1990 to 2015. The results show that, in the past 25 years, arable land—which is a part of ecological land—is the main source of construction land for urbanization, whereas the other ecological land is the main source of conversion to arable land.
    [Show full text]
  • Shanghai Municipal Commission of Commerce Belt and Road Countries Investment Index Report 2018 1 Foreword
    Shanghai Municipal Commission of Commerce Belt and Road Countries Investment Index Report 2018 1 Foreword 2018 marked the fifth year since International Import Exposition Municipal Commission of Commerce, President Xi Jinping first put forward (CIIE), China has deepened its ties releasing the Belt and Road Country the Belt and Road Initiative (BRI). The with partners about the globe in Investment Index Report series Initiative has transformed from a trade and economic development. to provide a rigorous framework strategic vision into practical action President Xi Jinping has reiterated at for evaluating the attractiveness during these remarkable five years. these events that countries should of investing in each BRI country. enhance cooperation to jointly build Based on extensive data collection There have been an increasing a community of common destiny and in-depth analysis, we evaluated number of participating countries for all mankind , and the Belt and BRI countries' (including key and expanding global cooperation Road Initiative is critical to realizing African nations) macroeconomic under the BRI framework, along with this grand vision. It will take joint attractiveness and risks, and identified China's growing global influence. By efforts and mutual understanding to key industries with high growth the end of 2018, China had signed overcome the challenges ahead. potential, to help Chinese enterprises BRI cooperation agreements with better understand each jurisdiction's 122 countries and 29 international Chinese investors face risks in the investment environment. organizations. According to the Big BRI countries, most of which are Data Report of the Belt and Road developing nations with relatively The Belt and Road Country (2018) published by the National underdeveloped transportation and Investment Index Report 2017 Information Center, public opinion telecommunication infrastructures.
    [Show full text]
  • The First Real-Estate Development by Japanese Developers in Changchun, Jilin Province, China Marubeni Coporation and Mitsubishi Jisho Residence Co., Ltd
    July 18, 2013 Marubeni Corporation Mitsubishi Jisho Residence Co., Ltd. The First Real-Estate Development by Japanese Developers in Changchun, Jilin Province, China Marubeni Coporation and Mitsubishi Jisho Residence Co., Ltd. set off the Joint Development –“Changchun Jingyue Project (Tentative)” <Perspective of the project> Marubeni Corporation (“Marubeni”) and Mitsubishi Jisho Residence Co., Ltd. (“Mitsubishi Jisho Residence”), as the first Japanese developers, plan to implement a real-estate development project with Jilin Weifeng Industry Co., Ltd. (“Weifeng”), a local Chinese developer, in Changchun, China. This project, as our first project in Changchun, with an area of 130,000 square meters, is located in Changchun Jingyue National High-tech Industrial Development Zone (“Jingyue DZ”), concentrating on Town House and Residential. The Project Company, Changchun Top Chance Property Development Co., Ltd. (“Changchun Top Chance”) owned by Marubeni (40%), Weifeng (35%) and Mitsubishi Jisho Residence (25%), has started the construction for the release this coming fall. Changchun is the capital of Jilin Province, also a core city in the northeastern part of China, with a population of 7,620,000. It is administered as one of 15 sub-provincial cities which are independent and equivalent to provinces. Having a solid industrial basis including automobile manufacturing as typified by FAW (First Automotive Works) Group, along with manufacturing transportation facilities and processing agricultural products, Changchun is continuing double digit economic growth, which is higher than the national average. Jingyue DZ is a national-level development zone approved by the State Council in August, 2012, with an area of 479 square kilometers, of which about half of the area, 243 square kilometers, consists of forest and a lake.
    [Show full text]
  • Appendix 1: Rank of China's 338 Prefecture-Level Cities
    Appendix 1: Rank of China’s 338 Prefecture-Level Cities © The Author(s) 2018 149 Y. Zheng, K. Deng, State Failure and Distorted Urbanisation in Post-Mao’s China, 1993–2012, Palgrave Studies in Economic History, https://doi.org/10.1007/978-3-319-92168-6 150 First-tier cities (4) Beijing Shanghai Guangzhou Shenzhen First-tier cities-to-be (15) Chengdu Hangzhou Wuhan Nanjing Chongqing Tianjin Suzhou苏州 Appendix Rank 1: of China’s 338 Prefecture-Level Cities Xi’an Changsha Shenyang Qingdao Zhengzhou Dalian Dongguan Ningbo Second-tier cities (30) Xiamen Fuzhou福州 Wuxi Hefei Kunming Harbin Jinan Foshan Changchun Wenzhou Shijiazhuang Nanning Changzhou Quanzhou Nanchang Guiyang Taiyuan Jinhua Zhuhai Huizhou Xuzhou Yantai Jiaxing Nantong Urumqi Shaoxing Zhongshan Taizhou Lanzhou Haikou Third-tier cities (70) Weifang Baoding Zhenjiang Yangzhou Guilin Tangshan Sanya Huhehot Langfang Luoyang Weihai Yangcheng Linyi Jiangmen Taizhou Zhangzhou Handan Jining Wuhu Zibo Yinchuan Liuzhou Mianyang Zhanjiang Anshan Huzhou Shantou Nanping Ganzhou Daqing Yichang Baotou Xianyang Qinhuangdao Lianyungang Zhuzhou Putian Jilin Huai’an Zhaoqing Ningde Hengyang Dandong Lijiang Jieyang Sanming Zhoushan Xiaogan Qiqihar Jiujiang Longyan Cangzhou Fushun Xiangyang Shangrao Yingkou Bengbu Lishui Yueyang Qingyuan Jingzhou Taian Quzhou Panjin Dongying Nanyang Ma’anshan Nanchong Xining Yanbian prefecture Fourth-tier cities (90) Leshan Xiangtan Zunyi Suqian Xinxiang Xinyang Chuzhou Jinzhou Chaozhou Huanggang Kaifeng Deyang Dezhou Meizhou Ordos Xingtai Maoming Jingdezhen Shaoguan
    [Show full text]
  • Global Offering
    (Incorporated in the Cayman Islands with limited liability) Stock Code: Global Offering Joint Sponsors, Joint Global Coordinators, Joint Bookrunners and Joint Leadad ManagersManagers (in alphabetical order) Other Joint Global Coordinator, Joint Bookrunner and Joint Lead Manager Other Joint Bookrunners and Joint Lead Managers (in alphabetical order) Project A_PPTUS cover(Eng) Cover size: 210 x 280mm / Open size: 445.3 x 280mm / Spine width: 25.3mm IMPORTANT If you are in any doubt about any of the contents of this prospectus, you should obtain independent professional advice. (Incorporated in the Cayman Islands with limited liability) GLOBAL OFFERING Number of Offer Shares under : 550,000,000 Shares (subject to the Over- the Global Offering allotment Option) Number of Hong Kong Offer Shares : 27,500,000 Shares (subject to reallocation) Number of International Offer Shares : 522,500,000 Shares (including 55,000,000 Reserved Shares under the Preferential Offering) (subject to reallocation and the Over-allotment Option) Maximum Offer Price : HK$22.30 per Share plus brokerage of 1.0%, SFC transaction levy of 0.0027% and the Hong Kong Stock Exchange trading fee of 0.005% (payable in full on application, subject to refund) Nominal value : US$0.00001 per Share Stock code : 1209 Joint Sponsors, Joint Global Coordinators, Joint Bookrunners and Joint Lead Managers (in alphabetical order) Other Joint Global Coordinator, Joint Bookrunner and Joint Lead Manager Other Joint Bookrunners and Joint Lead Managers (in alphabetical order) Hong Kong Exchanges and Clearing Limited, The Stock Exchange of Hong Kong Limited and Hong Kong Securities Clearing Company Limited take no responsibility for the contents of this prospectus, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this prospectus.
    [Show full text]
  • Issues and Challenges of Governance in Chinese Urban Regions
    Zurich Open Repository and Archive University of Zurich Main Library Strickhofstrasse 39 CH-8057 Zurich www.zora.uzh.ch Year: 2015 Metropolitanization and State Re-scaling in China: Issues and Challenges of Governance in Chinese Urban Regions Dong, Lisheng ; Kübler, Daniel Abstract: Since the 1978 reforms, city-regions are on the rise in China, and urbanisation is expected to continue as the Central Government intends to further push city development as part of the economic modernisation agenda. City-regions pose new challenges to governance. They transcend multiple local jurisdictions and often involve higher level governments. This paper aims to provide an improved un- derstanding of city-regional governance in China, focusing on three contrasting examples (the Yangtze River Delta Metropolitan Region, the Beijing- Tianjin-Hebei Metropolitan Region, and the Guanzhong- Tianshui Metropolitan Region). We show that, in spite of a strong vertical dimension of city-regional governance in China, the role and interference of the Central Government in matters of metropolitan policy-making is variable. Posted at the Zurich Open Repository and Archive, University of Zurich ZORA URL: https://doi.org/10.5167/uzh-119284 Conference or Workshop Item Accepted Version Originally published at: Dong, Lisheng; Kübler, Daniel (2015). Metropolitanization and State Re-scaling in China: Issues and Challenges of Governance in Chinese Urban Regions. In: Quality of government: understanding the post-1978 transition and prosperity of China, Shanghai, 16 October 2015 - 17 October 2015. Metropolitanization and State Re-scaling in China: Issues and Challenges of Governance in Chinese Urban Regions Lisheng DONG* & Daniel KÜBLER** * Chinese Academy of Social Sciences, Beijing, P.R.
    [Show full text]
  • STOXX Hong Kong All Shares 50 Last Updated: 01.12.2016
    STOXX Hong Kong All Shares 50 Last Updated: 01.12.2016 Rank Rank (PREVIOUS ISIN Sedol RIC Int.Key Company Name Country Currency Component FF Mcap (BEUR) (FINAL) ) KYG875721634 BMMV2K8 0700.HK B01CT3 Tencent Holdings Ltd. CN HKD Y 128.4 1 1 HK0000069689 B4TX8S1 1299.HK HK1013 AIA GROUP HK HKD Y 69.3 2 2 CNE1000002H1 B0LMTQ3 0939.HK CN0010 CHINA CONSTRUCTION BANK CORP H CN HKD Y 60.3 3 4 HK0941009539 6073556 0941.HK 607355 China Mobile Ltd. CN HKD Y 57.5 4 3 CNE1000003G1 B1G1QD8 1398.HK CN0021 ICBC H CN HKD Y 37.7 5 5 CNE1000001Z5 B154564 3988.HK CN0032 BANK OF CHINA 'H' CN HKD Y 32.6 6 7 KYG217651051 BW9P816 0001.HK 619027 CK HUTCHISON HOLDINGS HK HKD Y 32.0 7 6 HK0388045442 6267359 0388.HK 626735 Hong Kong Exchanges & Clearing HK HKD Y 28.5 8 8 CNE1000003X6 B01FLR7 2318.HK CN0076 PING AN INSUR GP CO. OF CN 'H' CN HKD Y 26.5 9 9 CNE1000002L3 6718976 2628.HK CN0043 China Life Insurance Co 'H' CN HKD Y 20.4 10 15 HK0016000132 6859927 0016.HK 685992 Sun Hung Kai Properties Ltd. HK HKD Y 19.4 11 10 HK0883013259 B00G0S5 0883.HK 617994 CNOOC Ltd. CN HKD Y 18.9 12 12 HK0002007356 6097017 0002.HK 619091 CLP Holdings Ltd. HK HKD Y 18.3 13 13 KYG2103F1019 BWX52N2 1113.HK HK50CI CK Property Holdings HK HKD Y 17.9 14 11 CNE1000002Q2 6291819 0386.HK CN0098 China Petroleum & Chemical 'H' CN HKD Y 16.8 15 14 HK0688002218 6192150 0688.HK 619215 China Overseas Land & Investme CN HKD Y 14.8 16 16 HK0823032773 B0PB4M7 0823.HK B0PB4M Link Real Estate Investment Tr HK HKD Y 14.6 17 17 CNE1000003W8 6226576 0857.HK CN0065 PetroChina Co Ltd 'H' CN HKD Y 13.5 18 19 HK0003000038 6436557 0003.HK 643655 Hong Kong & China Gas Co.
    [Show full text]
  • The Trade War and China's Oil and Gas Supply Security
    HIGH ANXIETY: THE TRADE WAR AND CHINA’S OIL AND GAS SUPPLY SECURITY BY ERICA DOWNS NOVEMBER 2019 “If Oil Supplies Are Cut Off, How Much Oil Does China Have?” —Cover of the June 15, 2019, issue of China Petroleum & Petrochemical1 “Is China’s Oil Supply Still Secure?” —Cover of the August 15, 2018, issue of China Petroleum & Petrochemical2 Introduction In summer 2018, China’s president Xi Jinping, facing pressure from the US-China trade war, intervened in a long-running debate within China’s oil industry about the extent to which national security concerns or market forces should determine domestic oil and natural gas production. Xi effectively tipped the scales in favor of advocates of prioritizing self-sufficiency over cost as part of a broader push for self-reliance amidst trade tensions. As a result, China’s national oil companies (NOCs) are accelerating investment in domestic exploration and production. While this ramp-up in spending is likely to result in an increase in output, especially of natural gas, it is unlikely to alter China’s substantial and growing reliance on oil and natural gas imports. However, the trade war probably will continue to contribute to shifts in the composition of China’s import portfolio, with both traditional and new suppliers gaining shares as a result of the slowdown in the flows of US liquified natural gas (LNG) and crude oil to China and decreases in deliveries of Iranian and Venezuelan crudes due to US sanctions. Xi instructed China’s NOCs to ramp up domestic exploration and production of oil and natural gas to enhance national energy security in July 2018.
    [Show full text]
  • The Next Wave of Chinese Lng Importers
    THE NEXT WAVE OF CHINESE LNG IMPORTERS Jenny Yang Xizhou Zhou (Presenter) Director, IHS Markit Greater China Power, Gas, Coal, and Renewables Managing Director, IHS Markit Many new and potential LNG importers have emerged in China, thanks to a combination of policy support and market fundamentals. Together, these new players present an important new source of LNG demand in the global market and significant opportunities for suppliers. However, further reforms are needed to transform the current market structure and remove obstacles for these new players. What are the challenges facing new LNG importers? What is being done to release their full potential? How will international suppliers get familiar with them? Jenny Yang, IHS Markit Key implications1 Chinese government policies allowing more players in wholesale natural gas supply had and will continue to affect the global LNG market. The country’s three national oil companies (NOCs) have traditionally monopolized China’s gas importing business, but this has changed. The Chinese non-NOCs have been increasingly active in LNG importing activities. Several non-NOCs have procured new LNG supply agreements and successfully imported cargoes. Many more companies are building or proposing new LNG receiving terminals. Together, China’s non-NOCs will provide significant opportunities for suppliers. These companies vary from large end-users and citygas distributors seeking to minimize their gas procurement costs to energy companies looking for new market opportunities. However, China will need to carry out further reforms to remove obstacles for these new players. Allowing midstream access, removing barriers to downstream gas market, and reducing pricing regulations are critical steps toward realizing the full potential of China’s domestic natural gas industry.
    [Show full text]
  • FTSE Publications
    2 FTSE Russell Publications 01 October 2020 FTSE Value Stocks China A Share Indicative Index Weight Data as at Closing on 30 September 2020 Index weight Index weight Index weight Constituent Country Constituent Country Constituent Country (%) (%) (%) Agricultural Bank of China (A) 4.01 CHINA Fuyao Glass Group Industries (A) 1.43 CHINA Seazen Holdings (A) 0.81 CHINA Aisino Corporation (A) 0.52 CHINA Gemdale (A) 1.37 CHINA Shanghai Fosun Pharmaceutical Group (A) 1.63 CHINA Anhui Conch Cement (A) 3.15 CHINA GoerTek (A) 2.12 CHINA Shenwan Hongyuan Group (A) 1.11 CHINA AVIC Investment Holdings (A) 0.61 CHINA Gree Electric Appliances Inc of Zhuhai (A) 7.48 CHINA Shenzhen Overseas Chinese Town Holdings 0.66 CHINA Bank of China (A) 2.23 CHINA Guangdong Haid Group (A) 1.24 CHINA (A) Bank Of Nanjing (A) 1.32 CHINA Guotai Junan Securities (A) 1.99 CHINA Sichuan Chuantou Energy (A) 0.71 CHINA Bank of Ningbo (A) 2 CHINA Hangzhou Hikvision Digital Technology (A) 3.56 CHINA Tbea (A) 0.86 CHINA Beijing Dabeinong Technology Group (A) 0.56 CHINA Henan Shuanghui Investment & Development 1.49 CHINA Tonghua Dongbao Medicines(A) 0.59 CHINA China Construction Bank (A) 1.83 CHINA (A) Weichai Power (A) 2.09 CHINA China Life Insurance (A) 2.14 CHINA Hengtong Optic-Electric (A) 0.59 CHINA Wuliangye Yibin (A) 9.84 CHINA China Merchants Shekou Industrial Zone 1.03 CHINA Industrial and Commercial Bank of China (A) 3.5 CHINA XCMG Construction Machinery (A) 0.73 CHINA Holdings (A) Inner Mongolia Yili Industrial(A) 6.32 CHINA Xinjiang Goldwind Science&Technology (A) 0.74
    [Show full text]
  • Final Determinations of AD/CVD Investigations of Standard Pipe
    FACT SHEET Commerce Finds Unfair Dumping and Subsidization of Circular Welded Carbon Quality Steel Pipe from the People’s Republic of China • On May 30, the Commerce Department announced its affirmative final determinations in the antidumping duty (AD) and countervailing duty (CVD) investigations on imports of circular welded carbon quality steel pipe (standard pipe) from the People’s Republic of China (China). • Dumping is when a foreign company sells a product in the United States at less than normal value. Subsidies are financial assistance from foreign governments that benefit the production, manufacture, or exportation of goods. • Commerce has determined that Chinese producers/exporters sold standard pipe in the United States at 69.20 to 85.55 percent less than normal value, and received net countervailable subsidies ranging from 29.57 to 615.92 percent. • As a result of the final AD determination, Commerce will instruct U.S. Customs and Border Protection (CBP) to continue to suspend liquidation of entries of subject merchandise and to collect a cash deposit or bond based on the final rates. Suspension of liquidation will only resume for purposes of countervailing duties if the International Trade Commission (ITC) issues an affirmative injury finding and Commerce issues a CVD order. • The rate of 85.55 percent for the Shuangjie Group and Jiangsu Yulong Steel Pipe Co., Ltd. in the AD investigation and 615.92 percent for the Shuangjie Group in the CVD investigation are based on total adverse facts available because these companies withdrew their participation and did not cooperate to the best of their ability in these investigations.
    [Show full text]