Sign in Subscribe
Petroleum

China and Global Energy Market Updates

Strategic Insights

— 2 min read

China's state-owned Sinopec Corp is set to price its Hong Kong share listing at the high end of its proposed range, seeking to raise $3.8 billion. The high demand for the initial public offering (IPO) shares in Hong Kong has led to a 4.3 times oversubscription, with 5% of the shares offered in the market. Meanwhile, in Japan, two major refiners, NMOC and Cosmo Oil, are cutting their surplus refining capacity to avoid overproduction, which will save them up to ¥400 billion ($4.3 billion) annually. Additionally, China's Guangdong liquefied natural gas (LNG) consortium has shortlisted four foreign groups, including BP and Shell, for its $870 million LNG receiving terminal and gas pipeline project. Other global energy updates include Phillips Petroleum's $600 million contract signing for the Timor Sea's Bayu-Undan field natural gas liquids project and India's Hindustan Petroleum receiving government permission to build a $2 billion refinery in northern India without a joint-venture partner.

Key Takeaways:

  • Sinopec Corp's IPO in Hong Kong is priced at the high end of its proposed range, seeking to raise $3.8 billion.
  • Japan's NMOC and Cosmo Oil are cutting their surplus refining capacity by 9% to avoid overproduction, saving them up to ¥400 billion ($4.3 billion) annually.
  • China's Guangdong LNG consortium has shortlisted four foreign groups, including BP and Shell, for its $870 million LNG receiving terminal and gas pipeline project.
  • Phillips Petroleum has signed a $600 million contract for the Timor Sea's Bayu-Undan field natural gas liquids project.
  • India's Hindustan Petroleum has received government permission to build a $2 billion refinery in northern India without a joint-venture partner.
  • East Timor is expected to receive up to $53.2 million in annual tax payments from Woodside's Sunrise gas project.
  • Australia and East Timor are in talks over the distribution of petroleum royalties from production in the disputed areas of the Timor Sea.

Statistics:

  • $3.8 billion: The target amount Sinopec Corp is seeking to raise from its IPO in Hong Kong.
  • $4.3 billion: The estimated annual savings for Japan's NMOC and Cosmo Oil from cutting their surplus refining capacity.
  • ¥400 billion ($4.3 billion): The estimated cost of the capacity cuts for Japan's NMOC and Cosmo Oil.
  • $870 million: The value of China's Guangdong LNG consortium's LNG receiving terminal and gas pipeline project.
  • $600 million: The value of Phillips Petroleum's contract signing for the Timor Sea's Bayu-Undan field natural gas liquids project.
  • $2 billion: The value of India's Hindustan Petroleum's refinery project in northern India.
  • $53.2 million: The estimated annual tax payments East Timor will receive from Woodside's Sunrise gas project.
  • 9.16 trillion ft^3: The estimated natural gas reserves of the Sunrise gas project.
  • 100 million b/d: The estimated peak condensate production at the Bayu-Undan field in 2005.
  • $430 million: The estimated annual savings for Japan's NMOC and Cosmo Oil from cutting their surplus refining capacity.

Sources:

  • WPA (2 October, p10)
  • WPA (9 October, p9)
  • WPA (18 September, p15)
  • WPA (19 June, p14)
  • WPA (31 July, p10)
  • WPA (28 August, p6)
  • WPA (9 October, p10)
  • WPA (10 October)

Read more