CHINA'S GAS DEMAND UP
The World Bank's private lending arm is targeting investments in natural gas companies in China, the largest growing market for the fuel.
The International Finance Corp. is investing $150 million in gas distribution company China Tian Lun Gas Holdings about two weeks after announcing a $300 million debt-financing deal for China Gas Holdings. Tian Lun Gas shares jumped the most on record. The IFC will probably invest in two to three other gas distributors in the nation in the "medium term," according to Lance Crist, the IFC's global head of oil and gas in Washington.
Chinese gas demand will more than triple from 2012 to 2040 as the nation seeks to diversify away from coal to reduce air pollution, according to the Paris-based International Energy Agency. Gas will account for 11% of the country's primary energy demand in 2040 from 4% now, the agency said in its 2014 World Energy Outlook report.
"Gas has traditionally been a very small part of the energy equation in the country, representing only about 5% of the energy supply," Crist said. "The Chinese government itself is targeting to double that to around 10% over the next five years and frankly we would like to see it reach more like 15 to 20% in the next 25 years."
Tian Lun Gas rose 9.6% by 9:01 a.m. London time after earlier advancing as much as 24%, the biggest intraday gain since the shares started trading in November 2010.
Half of the funds for Tian Lun Gas will come from the IFC's Global Infrastructure Fund, the first Asian deal by the $1.2 billion facility aimed at infrastructure projects in developing countries, according to a statement Monday. The lender, which in 2013 invested in ENN Energy Holdings, expects to provide a $60 million loan package for Hong Kong-listed Tian Lun Gas in the third quarter, Crist said.
China will need more energy as people move from rural areas to cities, presenting an opportunity for gas distribution companies, according to Crist. The nation's demand for the fuel will rise to exceed 600 billion cubic meters (21 trillion cubic feet) by 2014, more than Europe consumes now, the IEA estimates. Usage will reach 390 billion by 2025 from 148 billion in 2012.
"They do have a significant urbanization plan in China," Crist said. That "represents growth opportunities for these companies. They are growing 20 to 30% a year and for us, as an investment proposition, that's a fantastic outlook."
The IFC will also seek to invest in China's liquefied natural gas (LNG) terminals over the next year or two as private projects develop, he said. China will become the world's biggest LNG importer after Japan by 2035, BP said in its energy outlook. The nation may be one of the first to develop LNG use for river transport in a bid to reduce emissions from diesel, according to the IEA.
"We are looking to see how we can address all aspects of the value chain," Crist said. "I expect we will be much more heavily involved for instance in the LNG import business, as we are in other countries."
|June, 22, 13:40:00|
|June, 22, 13:35:00|
|June, 22, 13:30:00|
|June, 22, 13:25:00|
|June, 22, 13:20:00|
|June, 22, 13:15:00|
U.S. EIA - Venezuela holds the largest oil reserves in the world, in large part because of the heavy oil reserves in the Orinoco Oil Basin. In addition to oil reserves, Venezuela has sizeable natural gas reserves, although the development of natural gas lags significantly behind that of oil. However, in the wake of political and economic instability in the country, crude oil production has dramatically decreased, reaching a multi-decades low in mid-2018.
U.S. BEA - The U.S. current-account deficit increased to $124.1 billion (preliminary) in the first quarter of 2018 from $116.1 billion (revised) in the fourth quarter of 2017, according to statistics released by the Bureau of Economic Analysis (BEA). The deficit was 2.5 percent of current-dollar gross domestic product (GDP) in the first quarter, up from 2.4 percent in the fourth quarter.
WNN - There are 126 operational power reactors in 14 EU Member States, providing more than one-quarter of the bloc's total electricity production. In its Communication on the Nuclear Illustrative Program (PINC) published last year, the European Commission expects nuclear to maintain its significant role in Europe's energy mix up to 2050. This would require investment of some EUR40-50 billion (USD46-58 billion) in nuclear LTO by 2050.
REUTERS - Benchmark Brent crude LCOc1 was up 50 cents at $75.58 a barrel by 0835 GMT. U.S. light crude CLc1 was 50 cents higher at $65.57.