Asian Energy Market Developments: Key Trends and Investments

Strategic Insights -

China's state-owned oil giant CNOOC Ltd is poised to raise $1.1bn-$1.19bn through its initial public offering (IPO), offering a total 1.64bn shares. The IPO, set to take place in February, will see CNOOC contribute 200mn shares, while the remaining 1.44bn shares will be new issues by CNOOC Ltd. Additionally, PetroChina is set to offer its Kela-2 natural gas block in the western Tarim basin to foreign oil companies for development, with estimated gas reserves of 250.6bn cubic meters.

Meanwhile, Japan's ministry of international trade and industry (Miti) is working to develop and secure domestic natural gas assets as an alternative to oil. Miti plans to seek parliamentary approval in 2001 for increased funding through Japan National Oil (JNOC) to private firms seeking drilling rights for overseas natural gas and oil fields. Thailand's state-owned Petroleum Authority of India (PTT) has more than doubled its imports of natural gas from Myanmar, to 200mn cubic feet per day, due to the completion of a pipeline between Thailand and Myanmar. India's Gas Authority of India (Gail) will invest over 2.5bn rupees to raise the capacity of its natural gas pipeline to 60mn cubic meters per day.

In other news, China's PetroChina has set up a new subsidiary, PetroChina Lubricating Oil, for the production and sales of lubricants from PetroChina refineries into the Chinese market. The push for alternative energy sources and increased investment in the Asian energy market highlights growing concerns about oil dependence and the need for diversification.

Key Takeaways:

  • CNOOC Ltd's IPO is set to raise $1.1bn-$1.19bn, offering a total 1.64bn shares.
  • PetroChina will offer its Kela-2 natural gas block for development, with estimated gas reserves of 250.6bn cubic meters.
  • Japan's Miti plans to seek parliamentary approval for increased funding through JNOC to support private firms seeking overseas gas and oil drilling rights.
  • Thailand's PTT has doubled its imports of natural gas from Myanmar, with imports now at 200mn cubic feet per day.
  • India's Gail will invest 2.5bn rupees to raise its natural gas pipeline capacity to 60mn cubic meters per day.
  • PetroChina has established a new subsidiary, PetroChina Lubricating Oil, for the production and sales of lubricants.

Statistics:

  • $1.1bn-$1.19bn: Expected fundraising through CNOOC Ltd's IPO.
  • 1.64bn: Total shares offered in CNOOC Ltd's IPO.
  • 200mn: Number of shares contributed by CNOOC.
  • 1.44bn: Number of new shares issued by CNOOC Ltd.
  • 250.6bn: Estimated gas reserves in PetroChina's Kela-2 natural gas block.
  • 10bn: Projected natural gas output from Kela-2.
  • 2.5bn rupees: Investment made by India's Gail to raise natural gas pipeline capacity to 60mn cubic meters per day.

Sources:

  • WPA, 27 November, p18
  • WPA, 25 September, p10
  • WPA, 9 October, p10
  • WPA, 4 December, p7
  • WPA, 27 November, p15
  • WPA, 3 January, p6