China’s first 10-megawatt offshore wind turbine was connected to the grid at the Three Gorges Corporation’s Xinghua Bay Phase II offshore wind farm in Fujian on Sunday. It is the largest offshore wind power unit in the Asia-Pacific region and the second largest in the world. https://www.offshorewind.biz/2020/07/13/largest-wind-turbine-in-china-now-grid-connected/
Gazprom and Moscow have been pushing for the ‘Power of Siberia-2 pipeline’ from Western Siberia to China’s Xinjiang region. The proposal has been met with a lukewarm response from Beijing because the region is already well-supplied with Central Asian gas. However, due to the Coronavirus pandemic and Gazprom’s adjusted plan, the Power of Siberia-2 project is gaining momentum.
https://oilprice.com/Energy/Energy-General/China-Inks-Military-Deal-With-Iran-Under-Secretive-25-Year-Plan.html?fbclid=IwAR0mHzlcDcEdzpugzKZp7x0N4sO0J6efEoCC7xIDZeS8LqLv8lVoW-0LCrM One of the secret elements of the deal signed last year is that China will invest US$280 billion in developing Iran’s oil, gas, and petrochemicals sectors. This amount will be front-loaded into the first five-year period of the new 25-year deal, and the understanding is that further amounts will be available in each subsequent five year period, provided that both parties agree. There will be another US$120 billion of investment, which again can be front-loaded into the first five-year period, for upgrading Iran’s transport and manufacturing infrastructure, and again subject to increase in each subsequent period should both parties agree. In exchange for this, to begin with, Chinese companies will be given the first option to bid on any new – or stalled or uncompleted – oil, gas, and petrochemicals projects in Iran. China will also be able to buy any and all oil, gas, and petchems products at a minimum guaranteed discount of 12 per cent to the six-month rolling mean average price of comparable benchmark products, plus another 6 to 8 per cent of that metric for risk-adjusted compensation. Additionally, China will be granted the right to delay payment for up to two years and, significantly, it will be able to pay in soft currencies that it has accrued from doing business in Africa and the Former Soviet Union states. “Given the exchange rates involved in converting these soft currencies into hard currencies that Iran can obtain from its friendly Western banks, China is looking at another 8 to 12 per cent discount, which means a total discount of around 32 per cent for China on all oil gas, and petchems purchases,” one of the Iran sources underlined.
China imported 5.16 million tons of crude oil from Saudi Arabia in April, touching a record low from 2019 May. This is puzzling, with the low price, one would think China would import a lot of crude. What is happening? Perhaps this is one of the reasons? 100 million tons of oil reserves were detected in CNOOC-owned Kenli 6-1 oilfield. It is the first 100 million-ton oilfield in Bohai Bay area, guaranteeing China’s energy security and boosting the economy of regions around the sea.
The ethylene plant project invested in by US oil and gas giant Exxon Mobil in Huizhou in China’s southern Guangdong province, which is one of China’s national major foreign investment projects valued at USD10 billion, started construction in Huizhou Dayawan Petrochemical Industrial Park yesterday, various media reported.
Construction of the ethylene plant will unfold in two phases, with the first stage erecting an annual 1.6 million-ton capacity ethylene cracker, which is projected to finish and start operation in 2023. The project will ease China’s short supply of polyolefin used to make plastic film, and free it from over-reliance on imports of the high-performance polymer, per the reports.
Exxon Mobile chose Dayawan as the site as it is one of China’s seven main bases for the petrochemical industry and is well equipped with infrastructure and public support facilities. It also boasts a good business environment with highly efficient government and correspondingly huge support for the growth of overseas investment, said Fernando Vallina Bobes, chairman of Shanghai-based ExxonMobil China Investment.
The Chinese state-owned offshore oil and gas company CNOOC has made a large-sized discovery in Bohai Bay.
The company believes the Kenli 6-1 discovery to be the first large-sized oil field in the Laibei lower uplift. This is in the southern area of the Bohai basin.
The well was drilled and completed in water depth of 1,596m. It encountered oil pay zones with a total thickness of around 20m.
CNNOC said the exploration of Kenli 6-1 structure further proves the company’s exploration potential of the Neogene lithologic reservoir in the Laizhou Bay.
Bohai is the company’s main reserve, and crude produced in the region is mostly heavy oil.
This discovery stands with the six Bohai discoveries made in 2018. These are Luda 10-6, Luda 4-3, Luda 6-2 South, Bozhong 13-2, Longkou 19-1 North, and Kenli 5-1.
