QATAR & CHINA LNG: $5 BLN
Two Qatari companies agreed to pay about $5 billion for a 49% stake in Shandong Dongming Petrochemical Group to help the Chinese business build an LNG receiving terminal and expand into retail gasoline sales.
The investment by Hamad bin Suhaim Enterprises and Qatra for Investment and Development will pay for the construction of a receiving terminal for liquefied natural gas, with a capacity of 3 million tpy, and an LNG storage facility, Ibrahim El-Tinay, Qatra's CEO, told reporters Monday in the Qatari capital Doha.
Shandong Dongming will also use the money to built 1,000 gasoline filling stations in six provinces south of Beijing, he said.
"We hired a financial adviser and expect to close the deal before the end of the year," El-Tinay said, declining to identify the adviser. Shandong Dongming plans to select operators for the gas stations in the fourth quarter, he said.
Qatar, an OPEC member and the world's biggest exporter of liquefied gas, has been expanding investments in China and Asia, where it already sells most of its oil and LNG.
The emirate and its sovereign wealth fund, the Qatar Investment Authority, plan to invest as much as $20 billion in Asia by 2020. China is the world's largest energy consumer.
Shandong Dongming, which operates an oil refinery processing as much as 450,000 bpd, expects to sell about a third of its output through the new gas-station network, the company said in a joint statement with the Qatari investors.
It generated an operating income of $7.5 billion in 2013, according to the statement.
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GAZPROM - The parties discussed relevant issues related to bilateral cooperation, including the Baltic LNG project. Emphasis was placed on the priority measures aimed at developing a joint design concept (pre-FEED).
BHGE - U.S. Rig Count is up 11 rigs from last week to 1,063, with oil rigs up 8 to 869, gas rigs up 4 to 193, and miscellaneous rigs down 1 to 1. Canada Rig Count is up 13 rigs from last week to 195, with oil rigs up 8 to 127 and gas rigs up 5 to 68.
REUTERS - Brent crude futures had risen $1.02 cents, or 1.3 percent, to $81.28 a barrel by 0637 GMT. The contract dropped 3.4 percent on Thursday following sharp falls in equity markets and indications that supply concerns have been overblown. U.S. West Texas Intermediate (WTI) crude futures were up 80 cents, or 1.1 percent, at $71.77 a barrel, after a 3 percent fall in the previous session. WTI is on track for a 3.5 percent drop this week.
EIA - Brent crude oil spot prices averaged $79 per barrel (b) in September, up $6/b from August. EIA expects Brent spot prices will average $74/b in 2018 and $75/b in 2019. EIA expects West Texas Intermediate (WTI) crude oil prices will average about $6/b lower than Brent prices in 2018 and in 2019.