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PNOC, CPP sign MoU on energy projects
PROJECTS & COMPANIES
STATE-RUN Philippine National Oil Co. (PNOC) and China Petroleum Pipeline Engi- neering (CPP) have teamed up to develop energy infrastructure projects in the Southeast Asian country.
e two companies signed a memorandum of understanding (MoU) over lique ed natural gas (LNG), re nery and oil depot projects. No further details were given over the agreement.
Pipeline construction specialist CPP, a unit of state-owned China National Petroleum Corp. (CNPC), claims to have built more than 100,000 km of oil and gas pipelines as well as a myriad of other transportation and storage projects.
In March, PNOC signed an MoU with Phoe- nix Petroleum Philippines and CNOOC Gas and Power – a unit of state-owned China National O shore Oil Corp. (CNOOC) – on the $2bn Tanglawan LNG project.
e agreement allows the three companies to discuss opportunities and equity investment in the LNG hub project. Work on the receiving terminal, which will have a capacity of 2.2mn tonnes per year (tpy), is anticipated to start this year, with commercial operations slated to begin by 2023. Phoenix also intends to build a 2,000- MW power plant to support the project.
Manila’s energy dealings with Beijing’s state majors come amid wider tensions between the two governments over disputed South China Sea waters. China lays claim to around 95% of the
South China Sea, bringing it into con ict with the Philippines, Vietnam, China, Brunei, Taiwan and Malaysia.
Philippine Defence Secretary Del n Loren- zana criticised China’s aggressive actions in the sea on July 30, saying: “ ey say we do not bully people around, they follow international law, but I said you are not, what you are telling is not what you are doing on the ground.”
e defence chief was responding to Chinese Ambassador Zhao Jianhua’s comments on July 29 that his country was not seeking hegemony in the disputed region and would not “take the rst shot.”
China and Vietnam, meanwhile, have been locked in a stand-o at Vanguard Bank in the South China Sea since July 4, when Chinese survey ship Haiyang Dizhi 8 entered Vietnam’s 200-nautical mile (370-km) exclusive economic zone (EEZ). e ship – reportedly escorted by 35 Chinese coastguard vessels – is understood to have conducted marine seismic surveys.™
Report: China’s oil product exports set to rise
EAST ASIA
PERFORMANCE
CHINA’S continued oil product oversupply is expected to lead to a ramp-up of gasoline exports in the coming months, Reuters has reported cit- ing anonymous trading sources.
July and August exports of the fuel are pre- dicted to reach near record levels, with Latin America and West Africa understood to be the target markets for the volumes.
“Gasoline was overflowing [in China] as Hengli Petrochemical shocked the market ... companies took the advantage of stronger demand in Latin America and West Africa,” the newswire quoted one trader as saying.
Privately owned Hengli’s 400,000 barrel per
day (bpd) integrated re nery and petrochemical plant near the northeastern port city of Dalian reached full capacity in May. The plant adds about 4mn tonnes per year (tpy) of gasoline production capacity in an increasingly crowded market.
Fellow downstream independent Zhejiang Petrochemical has also commissioned its own 400,000 bpd integrated plant, which is located in Zhoushan. Trial operations began in May and, when it reaches full capacity, it too will add 4mn tpy of gasoline production capacity.
China raised its oil product export quotas for 2019 last week, allocating 6mn tonnes in a third
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w w w . N E W S B A S E . c o m Week 30 31•July•2019