LNG

ENN Natural Gas, the leading Hong Kong-listed and independent Chinese LNG and city-gas company, has signed a supply accord for volumes from an LNG export project being developed at Al Ruwais Industrial City in the United Arab Emirates.

China LNG Group Ltd., a Hong Kong-based company with assets along the value chain in mainland China, has formally changed its name to China HK Power Smart Energy Group Ltd to reflect better the company’s business plans and demonstrate its commitment to future development.

China National Offshore Oil Corp. (CNOOC), a leading LNG market participant among Chinese oil and gas majors, reported a more than 8 percent fall in third-quarter profit on lower realised oil and natural gas prices even as production increased.

China National Offshore Oil Company (CNOOC), a leading LNG market participant among Chinese oil and gas majors, has outlined its 2023 strategy with higher spending plans, including the targeting of more natural gas, both offshore and in unconventional onshore developments.

CNOOC said the offshore focus in China was on the South China Sea, including development of the Shenhai-1 gas field to promote efficient exploration and development of adjacent gas discoveries.

“We will also focus on five key projects including multi-stratal exploration around the Baodao 21-1 gas field and the rolling exploration around the Yinggehai gas field,” explained CNOOC.

Around the existing offshore Bohai gas fields, Chinese largest in the northeast, it would concentrate on the Bozhong 19-6 area and the Bozhong Depression.

CNOOC added that it was also pursuing an onshore unconventional natural gas programme to target 100 billion cubic metres of resources.

“We will actively promote the integration of exploration and development to increase resources in the Shenfu area,” explained CNOOC, referring to the onshore oil and gas located in the Shaanxi province of northwest China.

Spending

CNOOC’s net production target is between 650 million and 660M barrels of oil equivalent of which production from China will account for 70 percent and overseas resources would provide 30 percent.

Net production is also forecast to reach 690M to 700M Boe in 2024 and 730M to 740M BOE in 2025.

The company’s total capital expenditure for 2023 is budgeted at between 100 billion Chinese yuan ($14.75Bln) and 110Bln yuan ($16.23Bln), of which, capital expenditures for exploration, development, production will account for 18 percent, 59 percent and 21 percent respectively and 2 percent will go on administration.

Analysts said the robust programme suggested continued expansion of the economy in China through 2023 after the Covid-19 restrictions were lifted.

Nine new projects are planned to be brought on stream in 2023, including the Bozhong 19-6 gas field Phase I development in China and two oil fields at Lufeng 12-3 and Enping 18-6.

Overseas projects coming on stream include three developments in South America, the Payara Project in Guyana and the Buzios 5 and Mero 2 projects in Brazil.

The company said it continued to promote greener, lower-carbon developments and is expanding renewables, including its offshore wind project in Hainan, providing an additional 500 million kilowatt hours per annum to the power grid.

For shareholders, CNOOC said it expected to continue its annual dividend pay-out to investors through 2024 of “no less than” Hong Kong dollars $0.70 (US$0.09).

“In the coming year, CNOOC will continue to seek progress while delivering a stable performance,” said Chief Executive Zhou Xinhuai.

“The company will vigorously implement the three major programs of reserves and production augmentation, technological innovation and the green energy transition,” added Zhou.

A leading Chinese utility showed the depth of the nation’s continued economic slowdown with power sales dropping in the coastal provinces for coal-fired power and gas-fired electricity generating plants using regasified LNG and pipeline gas.

China Petroleum and Chemical Corp. (Sinopec), one of the world’s top six oil and gas companies and a significant liquefied natural gas importer to back up its refining activities, more than doubled annual net profits as prices soared and it continued to seal LNG supply deals.

China Coal Energy, the largest Chinese coal mining and coal-fired generating company, posted rising revenues, profits and sales with the earnings giving an illustration of the Asian nation’s continued use of the most polluting energy source and its future potential for more LNG and gas use.

China National Offshore Oil Corp., one of China’s main LNG importers, has issued an advisory statement expressing regret at a decision by New York Stock Exchange to delist its shares under measures first enacted by the Trump Administration.

China Petroleum and Chemical Corp., or Sinopec, the largest Chinese owner of oil refineries and with growing LNG volumes to match its contracted Australian supplies, reported a tumble in net profits of almost 46 percent in the year to date because of the double challenges in the energy market.

China National Offshore Oil Corp., the state-backed oil and gas producer and the nation’s largest LNG import terminal owner, said annual net profits rose almost 16 percent as it achieved record production in 2019.