Energy Insider: CNOOC seeks $5.4 Billion Shanghai listing

  • Sep 28, 2021
  • Caixin Global

In today’s Caixin energy news wrap: Cement prices top record high in Zhejiang amid massive shutdowns; Local governments work to secure energy supply in Northeast China; Regulators launch inspections of coal and gas supply; Coal suppliers pledge to stabilize coal prices; CNOOC seeks $5.4 billion Shanghai listing; Renewable energy M&A activities in China surged 123%

Cement prices top record high in Zhejiang amid massive shutdowns

More sectors are affected by power shortages in eastern China’s Zhejiang province. Ten cement companies in cement-producing county Lanxi have announced a 15-day shutdown since Sunday. Cement prices as a result reached a record-high of 724.7 yuan ($112) per ton last Friday.

Local governments work to secure energy supply in Northeast China

Local governments of northeastern China’s Jilin province pushed to boost coal supplies on Sunday as a power shortage throughout the region has affected homes. The vice governor called for purchasing more imported coal and making full use of clean energy to avoid massive power outages. Last Thursday, coal power plants and heating factories from Northeast China signed a series of medium- and long-term supply contracts with several large domestic coal producers. According to the official Xinhua News Agency, these contracts will cover all coal demand this winter for the region.

Regulators launch inspections of coal and gas suppliers

China’s National Energy Administration (NEA) said Sunday that it launched a series of inspections of fuel producers recently, calling for higher coal and gas production. The National Development and Reform Commission (NDRC) also launched a spot probe in Qinhuangdao Port, a main port for coal transportation in North China, to investigate coal import practices. In a meeting amid the investigation, NDRC urged local governments to monitor coal prices and to ensure coal producers follow price policies strictly.

Despite the pressure caused by dramatic gap between soaring domestic coal prices and those of long-term import contracts, coal suppliers in China pledged to provide sufficient coal with stable prices for the coming heating season, in a recent meeting held by the industry association. Immediately after a spot probe by NDRC in Qinhuangdao Port, state-owned coal enterprises including China Energy and China National Coal Group announced plans to cut coal prices. Several coal transportation providers also pledged below-market prices.

China National Offshore Oil Corp. (CNOOC), one of the largest Chinese oil companies, is planning an up to 35 billion yuan ($5.4 billion) listing on the Shanghai stock exchange. The company was added to U.S. economic blacklist this year and then delisted from the New York Stock Exchange.

Tibet Summit Industry to raise $1.2 billion for lithium carbonate project in Argentina

Tibet Summit Industry Co. Ltd. plans to raise up to 8 billion yuan ($1.2 billion) through private placement. Almost half of the proceeds will be invested in a 50,000-ton lithium carbonate project in Argentina and about 1.8 billion yuan ($280 million) will be used to expand its mining and processing project in Tajikistan.

As a key material in both photovoltaic and semiconductor industries, silicon prices jumped 45.83% to 61,125 yuan ($9460) per ton in China after the Mid-Autumn Festival. Analysts attribute the soaring prices to highly uncertain silicon production amid China’s tight energy control policies. Processing silicon is a huge energy consumer.

A 250,000-tonne channel in Port of Tangshan was approved recently. Expanded from a 200,000-tonne channel, the new one started construction four years ago and cost 1.7 billion yuan ($280 million) in total. With the new channel, Port of Tangshan is now the world’s second largest port in terms of container volume.

Renewable energy M&A activity in China surged 123%

PwC reports a surging number of M&A deals for the Chinese energy and power industry in the first half. According to the report, M&A deals in the sector rebounded to 380 with a total value of 225.8 billion yuan ($35.0 billion), up 92% year-on-year. More than 60% of those M&A deals were in the renewable energy sector with a total volume of 147.8 billion yuan.

China now has 6.78 million new energy vehicles (NEVs), 1.87 million of which were registered this year alone, accounting for 9.2% of this year’s total new registered vehicles, according to Liu Zhao, vice minister of China’s Ministry of Public Security in World Intelligent Connected Vehicles Conference. Liu also said the ministry will join other departments to promote NEV road test.

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