Page 9 - AsiaElec Week 35

AsiaElec GAS-FIRED GENERATION AsiaElec

GCL restructures LNG, gas business

CHINA HONG Kong-based Golden Concord Holdings capital and integrating the entire gas value chain,
Ltd (GCL) has launched a strategic restructuring GCL hopes to supply high-quality gas to its sev-
of its LNG and gas businesses, the company has eral power plants and other industrial users
said. The group has established a new company, across China.
GCL Natural Gas, and appointed H. Sterling At the same time, GCL has wrapped up
Group chairman Eric Wang as the new entity’s exploration of its overseas oil and gas assets and
chair. is now shifting its focus to production.
“GCL Natural Gas will integrate GCL’s As for its downstream activities, the National
existing overseas natural gas exploration and Development and Reform Commission
development, its three LNG terminals in Yan- (NDRC) approved the Yantai LNG terminal in
tai, Rudong and Maoming [in] China, and H. January, and the project is set to be one of Chi-
Sterling Group’s natural gas investments and na’s largest LNG terminals, the company told
international gas-to-power projects to develop NewsBase.
LNG value chain to synthesise the exploration “The Rudong and Maoming LNG terminals
and production, liquefaction, transport, storage, are awaiting NDRC approval before the end of
trade and marketing of natural gas, working to this year. H. Sterling, as a partner and co-investor
make GCL Natural Gas a key player in the Chi- of some GCL projects, has established close ties
nese gas market,” the company said in a state- with a number of large international gas compa-
ment emailed to NewsBase. nies and made significant headway in securing
GCL has interests around the world and, downstream customers in the project region,”
amongst other things, is a leader in solar pho- the company said.
tovoltaic (PV) power, gas-fired power genera- This is not first project where GCL has
tion and smart-grid technology in China. The co-operated with H. Sterling. The partners are
National Energy Administration (NEA) ranked also developing and investing in gas-fired power
the company near the top of the list of “Global projects in a number of countries across Asia and
Top 500 New Energy Enterprises” for 2019. Africa, with a combined capacity approaching
The company says that by streamlining insti- 2,000 MW. ™
tutions, increasing efficiency, consolidating

ONGC reveals $6.1bn debt plan

INDIA INDIA’S state-run Oil and Natural Gas Corp. been able to reduce debt by more than a third in
(ONGC) has said it is considering raising up 2019-2020 to INR139.49bn ($1.87bn), corona-
to INR450bn ($6.1bn) worth of debt, following virus (COVID-19)’s downward pressure on oil
recent reports that the developer would struggle prices meant it was going to struggle this year.
to finance its capital expenditure objectives. “We live in an era of sub-optimal oil prices
ONGC said on August 24 that its board and government-mandated natural gas prices
would meet on September 1 to consider raising that are way below the cost [of production],” one
debt via bank loans as well as foreign and domes- official was quoted as saying.
tic debt instruments. Beyond the financial pressures of the pan-
The company said in its stock exchange fil- demic, however, ONGC is also struggling to
ing that it would consider establishing and/ mitigate COVID-19’s impact on its day-to-day
or extending a European Medium Term operations.
Note (EMTN) programme up to INR350bn ONGC has had to evacuate 16 crew mem-
($4.71bn). The board will also decide on an addi- bers from one of its rigs in the western offshore
tional loan of up to INR100bn ($1.35bn) lever- owing to an outbreak of infections at the facility,
aged against its bank term deposits. Times of India reported on August 21, citing
ONGC has reportedly been considering unnamed sources. ONGC is understood to have
expanding its debt pile following the collapse in halted operations of Greatship Chitra after the
international oil prices and the government’s cap crew members tested positive for the virus more
on pricing of domestic natural gas production. than a week ago. The facility is one of four hired
PTI reported on August 10 that the company from a unit of Great Eastern Shipping, India’s
seeking to raise debt to fund its planned capital largest privately owned shipping company. The
expenditure budget for financial year 2020-2021. state major has also reportedly suspended rig
The newswire cited unnamed company payments.™
sources as saying that while the company had

Week 35 02•September•2020 www. NEWSBASE .com P9