Energy Insider: Shanghai Electric Probed for Disclosure Violations; Sinopec Builds China’s Largest Carbon-Capture Project
In today’s Caixin energy news wrap: Coal-rich Shanxi province plans to expand government coal reserves by 3 million tons this year; provinces move to curb steel production; China’s largest carbon capture project starts construction in Shandong; and a leading energy equipment maker is under investigation.
Sinopec builds China’s largest carbon-capture project
State energy giant Sinopec started building a carbon capture, utilization and storage (CCUS) project in Eastern China’s Shandong province, the largest of its kind in the country, the company said. The project, to be put into operation by the end of 2021, is expected to reduce carbon emissions by 1 million tons a year. The project consists of two parts – Sinopec Qilu's carbon dioxide capture and Shengli Oilfield's carbon dioxide displacement and storage. Sinopec Qilu captures carbon dioxide and transports it to the Shengli Oilfield for displacement and storage to seal the potent greenhouse gas underground.
Shanghai Electric probed for disclosure violations
Shanghai Electric Group (601727.SH), a leading energy equipment producer, is under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure rules, the company said Monday. Shanghai Electric vowed to actively cooperate and fulfill information disclosure obligations in accordance with regulatory requirements. In late May, Shanghai Electric disclosed that it may face write-downs of 8.3 billion yuan ($1.28 billion) due to massive overdue payments by clients of one of its subsidiaries.
Shanxi to add 3 million tons of government coal reserves
The government of coal-rich Shanxi province plans to add 3 million tons this year to its coal reserves. The additional reserves will come from several major coal mining companies in the province, including Jinneng Holding Group, Shanxi Coking Coal, Lu’an Chemical Group and Huayang New Material Technology Group. Each coal enterprise will provide 1.5 million to 2 million tons for the reserves, the government said.
Provinces step up efforts to curb crude steel output
Several provincial governments in China issued policies to contain local crude steel output in a broader effort to reduce pollution. The Gansu government asked local steelmakers June 28 to ensure that crude steel output in 2021 does not increase from last year’s level. A day later, the Anhui government held a symposium on crude steel output reduction, also requiring that crude steel output this year not exceed last year’s. In a July 2 report, Hwabao Securities said the central government worked out a crude steel output reduction policy, which is expected to be unveiled in the third quarter.
Tianqi Lithium unit gets $1.395 billion from IGO
Tianqi Lithium (002466.SZ) said its wholly owned subsidiary, TLEA, lined up publicly traded Australian company IGO Ltd. as a strategic investor through a new share sale. Under the transaction, IGO paid $1.395 billion for 49% of TLEA’s registered capital. The deal is part of Tianqi Lithium’s efforts to address a debt crisis.
GCL sells another solar power station to State Power Investment
GCL New Energy Holdings Ltd. (0451.HK) signed an agreement with Guizhou Xineng Electric Power Construction Co. Ltd., a unit of State Power Investment Corp. Ltd., to sell a domestic grid-connected photovoltaic power station with a capacity of 50 megawatts. The deal brought GCL 306 million yuan ($47.3 million) of cash, which it said it will use to repay debt.
Extended gas pipeline project connecting Shanxi and Shaanxi approved
To promote development and utilization of coalbed methane resources and enhance the gas supply capacity of Shanxi and Shaanxi provinces, an extended gas pipeline project connecting Ji County in Shanxi province and Yichuan county in Shaanxi province was approved Monday by the National Development and Reform Commission. With a total investment of 354 million yuan ($54.8 million), the 34.2-kilometer pipeline project is expected to carry 3.3 billion cubic meters of gas per year.
Contact editors Han Wei (firstname.lastname@example.org) and Bob Simison (email@example.com)
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