Energy Insider: CNPC Sets New Investment Arm for Low-Carbon Initiatives; China’s Largest Oil Refining Complex Makes Progress
In today’s Caixin energy news wrap: China increases refined oil price for the ninth time this year; the giant Baihetan hydropower plant starts generation; and state oil giant CNPC forms new investment arm targeting new-energy projects
CNPC creates new venture in low-carbon drive
Chinese state-owned oil and gas producer CNPC set up a new company to focus on investments in new-energy related businesses. The venture, CNPC Kunlun Capital, is jointly held by CNPC, its listed arm PetroChina and investment unit CNPC Capital Co. With registered capital of 10 billion yuan ($1.55 billion), the new venture will take in equity positions in businesses including new energy, new materials, energy saving, advanced manufacturing and carbon capture, utilization and storage.
China’s largest oil refining complex completes first phase of construction
State-owned oil refining giant Sinopec said the first phase of construction was completed on a massive refining and petrochemical production complex in Zhenhai, Zhejiang province. With designed capacity to refine 27 million tons of petroleum every year and produce 2.2 million tons of ethylene, the facility is the largest refining complex in China. Production is set to start by the end of the year.
China raises oil product prices for ninth time this year
The National Development and Reform Commission (NDRC) put through the ninth price hike this year for refined oil products in response to changes in international petroleum prices. Starting at midnight Monday, China’s gasoline prices were increased by 225 yuan ($34.80) per ton and diesel prices by 215 yuan ($33.30) per ton, according to the agency. After the price rises, filling up a 50-liter tank with gasoline will cost about 9 yuan more.
Giant Baihetan hydropower plant starts generation
The Baihetan Hydropower Station — the world’s second-largest hydropower installation after China’s Three Gorges — put its first two generator sets into operation Monday. Located on the upstream branch of the Yangtze River, the Baihetan Hydropower Station was built with a total investment of 220 billion yuan ($34 billion). The project has a total installed capacity of 16 million kilowatts, or about 71% of the capacity of Three Gorges. The project is expected to generate about 62.4 billion kilowatt-hours of power every year. All 16 generator sets are to be put into service by July 2022.
CRRC inks $6.7 billion of contracts in second quarter
China’s rolling stock supplier CRRC (601766.SH) said it inked a total of 43.55 billion yuan ($6.7 billion) of contracts for railroad equipment between March and June, equivalent to 19% of its 2020 revenue. Of the total, 30.2 billion yuan came from contracts signed with China State Railway Group. CRRC also signed two contracts with foreign customers, including a 530 million yuan passenger car sales contract for CREC’s Padma Bridge Rail Link Project in Bangladesh, and a 3.05 billion yuan contract for sales and maintenance with Etihad Rail Co. PJSC EMU in the United Arab Emirates, the company said.
Asia’s largest onshore shale oil platform is completed
The largest onshore shale oil horizontal well platform in Asia was completed ahead of schedule last week in China’s Changqing oilfield. With 10 times the oil production capacity of conventional wells, the platform occupies 60% less land and has controlled reserves of 10 million tons.
Contact editors Han Wei (email@example.com) and Bob Simison (firstname.lastname@example.org)
Download our app to receive breaking news alerts and read the news on the go.
Follow the Chinese markets in real time with Caixin Global’s new stock database.
- MOST POPULAR