NEWS

Market set to get greater role in oil and gas sector

Source: www.chinamining.org     Citation: China Daily          Date: May 23, 2017

The market-oriented reform of the country`s oil and gas sector will give the market a decisive role in the industry, allowing broader participation in a sector dominated by State-owned companies, analysts said. 

"The blueprint for the heavily monopolized energy sector won`t have any serious impact on the dominance of State-owned trio of giants in the sector, but will definitely encourage the entry of independent companies into the industry and diversify the market players," said Wang Lu, an Asia-Pacific oil and gas analyst at Bloomberg Intelligence.

China`s oil and gas sector is dominated by three heavyweights: China National Petroleum Corp, China Petrochemical Corp and China National Offshore Oil Corp, which have long been accused of monopolizing the nation`s oil and gas resources.

"Allowing new players into the industry may raise the country`s upstream capital expenditure, which would increase the workload of oilfield service companies, especially independent ones such as Anton Oilfield Services Group and SPT Energy Group," said Wang.

The news of the reform plan fueled a stock market upsurge among oilfield service companies on Monday, with Sinopec Oilfield Service Corp climbing 9.95 percent to 4.09 yuan (60 cents) and China Oilfield Service Ltd rising 0.83 percent to 13.31 yuan.

Low oil prices have made PetroChina, Sinopec and CNOOC more prudent in capital expenditure, said Wang.

The reform plan, released on Sunday, included opening up exploration to more companies, liberalizing retail prices and separating pipeline operations from the country`s major energy firms.

Dong Xiucheng, a professor at the China University of Petroleum in Beijing, said the reform will give competitive firms easier market access, whether they are State-owned or private.

"A more diversified competitive market will be the future trend," said Dong.

"While the government should safeguard national energy security, the market should play its role in allocating resources, boosting productivity to meet demand."

However, some analysts said the plan lacks an implementation schedule, deadline or specific projects.

"The plan shows a clear attitude toward the sector`s future direction," said Li Li, energy research director at ICIS China, a consulting firm on China`s energy market. 

"However, the blueprint comes up with no specific schedule for the long-awaited reform of the sprawling State-controlled sector, or clear deadlines or certain requirements for any specific projects and companies."

Wang said the industry is heading toward market-oriented prices and the diversification of market players. Yet issues which may discourage the industry from changing include low oil prices and high upfront capital requirements.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin in September 23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

Broad approach boosts energy security

Source: www.chinamining.org     Citation: Global Times           Date: May 22, 2017

Experts on Sunday said that China`s efforts to achieve energy security have achieved preliminary success after the country received crude oil from the last of the four energy channels it has been building for years.

The first crude oil from Myanmar has reached China via the China-Myanmar crude oil pipeline, State-owned oil giant China National Petroleum Corp (CNPC) announced in a statement on its website on Friday.

The 1,420-kilometer cross-border pipeline, part of the China-Myanmar oil and gas pipeline project, starts near Kyaukpyu in Myanmar and enters China at the border city of Ruili, Southwest China`s Yunnan Province. The pipeline can carry 13 million tons of crude oil per year, according to CNPC.

Beyond the Myanmar pipeline, China has built up three other energy channels in recent years: the Sino-Russian pipeline passing through China`s Northeastern provinces, the traditional seaborne supply composed of ports and ships, and a pipeline that links Northwest China`s Xinjiang Uyghur Autonomous Region and Central Asian countries.

Also on Friday, local media in Northeast China`s Heilongjiang Province reported that China had received 100 million tons of crude from Russia via the Sino-Russian oil pipeline since 2011, citing customs data. The total value of the crude is $62.57 billion, and the shipments have generated 65.7 billion yuan ($9.54 billion) in tax revenue.

In the first three months of this year, the China-Kazakhstan pipeline pumped 1.53 million tons of crude into China, a statement on the website of the National Development and Reform Commission, the national economic planner, showed on February 27.

Dong Xiucheng, director of the China Oil & Gas Center with the China University of Petroleum, said that the latest developments show a national diversification strategy, which emphasizes establishing multiple sources of crude imports via multiple routes and directions, has achieved preliminary success.

Lin Boqiang, director of the Center for Energy Economics Research at Xiamen University, said that the functioning of all four energy channels is a milestone in China`s efforts to achieve energy security and a more diversified energy supply system.

"However, it is vital to continue to expand supply because China`s demand for oil has increased significantly from years ago when plans for the four channels were drawn up," Lin told the Global Times Sunday.

China`s crude imports in the first four months of this year stood at 139.12 million tons, up 12.5 percent year-on-year, according to customs data. In 2016, the nation imported 381 million tons of crude.

The regions these pipelines pass through will definitely benefit, as will related industries, noted Lin.

"The four channels could be expanded. For instance, a new one that starts in Iran, passing through Pakistan and entering China via Xinjiang, could be an addition to existing channels despite its high costs. Such projects won`t be based solely on economic reasons -- political factors will also weigh in," Dong told the Global Times on Sunday.

However, the completion of these infrastructure projects and the resulting gradual increase in oil imports won`t affect China`s energy restructuring strategy, which aims to curb coal consumption, stabilize crude use and increase the share of natural gas in the energy portfolio, Dong said. He said that overall oil consumption will still rise.

Lin said that "it is also important to make more effort to increase the turnover of the three overland channels and increase their proportion of the nation`s oil supply and reduce the over-reliance on seaborne oil supply."

"From a long-term perspective, it can be expected that having multiple oil supplies will help China obtaining more leverage in negotiating oil import prices," Lin said.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin in September 23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

Breakthrough fuels hopes that fire ice is viable energy source

Source: www.chinamining.org     Citation: China Daily              Date: May 22, 2017

Photo shows a piece of rock sample from the seabed of South China Sea on April 2, 2017. (Photo/Xinhua)

On Thursday, the Ministry of Land and Resources announced that China had become the first country to viably extract gas from methane hydrates. Xinhua News Agency commented on Friday:

This month`s successful trial operations in test drilling and production in the South China Sea extracted an average of 16,000 cubic meters of gas per day in the Shenhu area of the South China Sea. This marks a major step toward the commercial use of so-called flammable ice or fire ice, which presents as ice crystals with natural methane gas locked inside.

Achievements like this largely rest with major breakthroughs in key technologies such as deep-sea exploration. As other big powers put more efforts into maritime research and the exploitation of marine resources China has no reason to stand aside and it has now claimed a leading position in the exploitation of fire ice.

Formed in permafrost or under the sea, there are large reserves of methane hydrates, which have a high energy density and reportedly release less than half the amount of carbon dioxide as oil and coal when burned. Acquiring a steady output is well worth the painstaking drilling attempts, because it may quench the thirst of the country and the world for a sustainable energy supply.

Fire ice is likely the world`s last remaining carbon-based fuel source to be exploited, and countries have been seeking ways to make the extraction profitable. China`s breakthrough is seen as a major step toward making gas extraction from methane hydrates viable.

More important, the introduction of a series of new technologies and environmental protection emergency plans in the latest test drilling and production operations also represent the notable progress China has made in promoting innovation and environmental awareness.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin in September 23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

Baogang Group, MCC cooperate on mineral resources

Source: www.chinamining.org     Citation: www.chinadaily.com.cn      Date: May 19, 2017

Baogang Group signed a long-term cooperation agreement with Mongolian Mining Co (MCC), the largest privately owned coal mining company in Mongolia, on mineral resources on May 12, reports Baotou Daily. 

According to the agreement, the two companies will cooperate in areas like coal mining, ore washing and selecting.

The move marks remarkable progress in international cooperation for Baogang Group, an iron and steel State-owned business based in Baotou, Inner Mongolia autonomous region.

Bordering Inner Mongolia autonomous region, Mongolia is one of the Belt and Road Initiative countries. It boasts rich mineral resources including iron and coal.

Baotou has formed partnerships with Mongolia in various areas over the past few years as part of the implementation of national strategies for China’s Belt and Road Initiative and the China-Russia-Mongolia Economic Corridor.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin in September 23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

China, Canada eye clean technology cooperation

Source: www.chinamining.org     Citation: Xinhua           Date: May 18, 2017

TORONTO - More than 150 delegates from Chinese and Canadian governments, companies and research institutes gathered here Tuesday at a forum to discuss cooperation between the two countries on clean technology. 

The Pujiang Innovation Forum 2017 - Canada Forum, under the theme of "Forging an Eco-chain for Clean Technology Transfer," was jointly held by the Chinese Science and Technology Ministry, the Shanghai Municipal Government and the Ontario Ministry of Research, Innovation and Science.

A series of events, including the releasing ceremony of China Cleantech White Paper, the information exchange meeting between Chinese and Canadian innovation companies and a seminar on energy storage technologies, were held at the forum.

The Canadian branch center of Chinese National Eastern Tech-Transfer Center, designed to create more opportunities for cooperation on innovation and technology transfer between Canada and China, was also inaugurated at the forum.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin in September 23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

B&R Forum fuels energy deals

Source: www.chinamining.org     Citation: China Daily       Date: May 17, 2017

Workers at the Mtwara natural gas project in Tanzania. The pipeline, constructed by China National Petroleum Corp, is one of the projects in the Belt and Road countries and regions. ZHANG PING / XINHUA

CNPC reaches agreements worth $20b at landmark Beijing meeting 

China has agreed a batch of energy deals worth $20 billion with economies participating in the Belt and Road Forum for International Cooperation, which ended in Beijing on Monday, according to the head of China National Petroleum Corp, the country`s biggest oil and gas company. 

Deals signed during the forum included Saudi Arabian Oil Co taking a stake in CNPC`s Yunnan refinery, a $4 billion agreement for a natural gas processing plant in Azerbaijan with State Oil Co of Azerbaijan, gas storage and gas-fired power projects with Russia`s Gazprom PJSC, and a geothermal project in Kenya, it said. 

"CNPC will deepen cooperation with economies participating in the Belt and Road Initiative in the oil and gas sector, consistently promoting energy and infrastructure cooperation," said Wang Yilin, CNPC chairman, during the Belt and Road Roundtable for oil and gas cooperation in Beijing on Tuesday. 

Oil majors from Russia, Kazakhstan, Azerbaijan, Iraq, Uzbekistan, Sudan, Myanmar and China participated in the roundtable. 

Zhao Huirong, a researcher at the Chinese Academy of Social Sciences, said energy cooperation is the highlight of the Belt and Road Initiative, and the energy sector offers promising returns in overseas cooperation. 

CNPC currently has more than 50 joint projects underway in 19 countries and regions participating in the Belt and Road Initiative, including Russia, Kazakhstan, Turkmenistan, Iraq, Iran, Indonesia and Singapore. 

It said that its equity oil and gas production exceeded 59 million metric tons in 2016. 

It is also looking forward to oil and gas cooperation with the United States, as it is seeking to import more crude oil and natural gas from the country and is considering participating in US LNG exports. 

As China, the world`s biggest energy consumer, looks to further diversify its crude supply, the US is likely to be one of these sources due to its rich oil and gas resources. 

The CNPC chairman said the company should speed up cooperation with resource countries to develop assets in order to meet China`s growing need for oil and gas. 

China overtook the US as the world`s biggest oil importer in October, and it surpassed Canada as the top buyer of US crude in February. 

Li Li, energy research director at ICIS China, a consulting company that provides analysis of China`s energy market, said US natural gas is reasonably priced, and it is mutually beneficial to carry out oil and gas cooperation.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin in September 23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

China to expand oil, gas cooperation with B&R countries

Source: www.chinamining.org     Citation: Xinhua          Date: May 17, 2017

China is looking to step up oil and gas cooperation with countries and regions along the Belt and Road, according to the country`s oil giant. 

At a round-table conference Tuesday, Wang Yilin, chairman of the China National Petroleum Corporation (CNPC), proposed that a mechanism be set up to facilitate regular exchanges of ideas among Belt and Road countries on oil and gas cooperation.

"An oil and gas community with shared benefits will not only be important to countries and regions along the routes, but it will also benefit the whole world in terms of economic prosperity and energy safety," Wang said at the conference.

Regional natural gas connectivity should be strengthened, the construction of the Asian oil and gas trading center should be pushed forward, and a social public welfare fund should be set up to facilitate such cooperation, Wang proposed.

So far, CNPC has participated and managed 50 oil and gas investment projects in 19 countries and regions along the Belt and Road. By the end of 2016, CNPC had invested more than 51 billion U.S. dollars in areas along the routes, and created more than 80,000 long-term jobs for local residents.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin in September 23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

Chinese companies called to help upgrade refining capacity along Belt and Road

Source: www.chinamining.org     Citation: chinadaily.com.cn          Date: May 15, 2017

Thomas Luedi, global partner of A. T. Kearney made a speech on the chemical industry in Beijing on May 10, 2017.[Photo provided to chinadaily.com.cn]

Global Consultancy A. T. Kearney advised Chinese chemical companies to address Belt & Road countries` aspiration to develop their own oil refining industry.

A. T. Kearney made the suggestion in a report, Global Opportunities for the Chinese Chemical Industry, which it jointly released on Wednesday with China Petroleum and Chemical Industry Federation (CPCIF). The report also said that these countries have been deterred by the lack of funds, technology and equipment to do so. 

China`s annual refining capacity reached 720 million tons by the end of 2016 and the country has 24 large-scale refineries in operation. It owns critical intellectual property and world-class technologies and has significant experience planning and constructing large-scale refineries, the report said. 

The report also stated that nine countries, including India, Iraq, Russia, the United Arab Emirates, Malaysia, Saudi Arabia, Vietnam, Turkey and Egypt, plan to expand oil refining capacity by more than 160 million tons. 

It further pointed out that refining facilities in many countries need urgent upgrades. For example, refineries in Russia, Kazakhstan, Uzbekistan, Kyrgyzstan, Azerbaijan and Ukraine were mainly built during the era of the former Soviet Union and many refineries in the Middle East, such as those in Iraq, Oman, Kuwait and Egypt, were built in the 1950s and 1960s. It added that most refineries in Southeast Asian countries, like in Myanmar, Thailand and the Philippines, were built in the 1970s and 1980s. 

The report concludes that Chinese refiners are strongly positioned to collaborate with partners along the Belt and Road, with a primary focus on ASEAN, the Middle East, Central Asia and Russia, and to participate in greenfield, upgrading and expansion projects. 

However, although opportunities are aplenty for Chinese companies, Zeng Jian, CPCIF Party chief, warned that Chinese companies need to pay attention to different cultures and policies among different countries along the Belt and Road to lower risks.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin in September 23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.