Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC



China Energy Investment signs MOU for $83.7 B in West Virginia projects

BEIJING (Reuters) — China Energy Investment Corp, the world's largest power company by asset value, has signed a memorandum of understanding (MOU) to invest $83.7 B in shale gas, power and chemical projects in West Virginia, the US state said on Thursday.

China Energy West Virginia Mou
 

The agreement was the biggest among a slew of deals signed during US President Donald Trump's state visit to Beijing. The total value of the deals done during Trump's trip could be as much as $250 B.

The gas and power agreement marks the first overseas investment for newly founded China Energy, which formed from a merger of China Shenhua Group, the country's largest coal producer and China Guodian Corp, one of its top five utilities.

Beijing is supporting and encouraging its power companies to expand globally, and the agreement underscores China Energy's ambition to diversify into natural gas and the refining sector.

The touted investment would extend over a 20-yr period, covering projects for power generation, chemical manufacturing and the underground storage of LNG, West Virginia's Department of Commerce said in its announcement.

The deals will likely help create jobs in West Virginia and lift its economy.

West Virginia's gross domestic product declined 0.9% in 2016, reversing growth seen in 2015, according to the Bureau of Economic Analysis at the US Department of Commerce.

"From driving growth and creating jobs to maximizing America's energy potential, the benefits for West Virginia and the country from this new investment will be significant," said US Senator Shelley Moore Capito, West Virginia, according to the statement from the state's Department of Commerce.

With an estimated 326,00 staff, China Energy has a workforce almost four times bigger than the entire US coal-fired power industry for 2016.

The Chinese energy conglomerate has an installed capacity that tops 225 gigawatts, eclipsing major international rivals EDF and Enel.

China Shenhua Energy jumped 7.4% on the announcement to close at 22.05 yuan per share on Thursday.

Reporting by Meng Meng and Josephine Mason; Editing by Joseph Radford and Tom Hogue


Copyright © 2018. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo

FEATURED COLUMNS

Editorial Comment
-Adrienne Blume
The US Energy Information Administration (EIA) reported in April that the US set records for natural gas production in 2017.
EWAnalysis
- Energy Web Atlas
Since market reforms first started in 1978, China has shifted from a centrally planned economy to a market-based economy, experiencing rapid economic and social development.
Industry Perspectives
-Eugene Gerden
Russia aims to ally with Qatar in LNG competition with Australia and other LNG-exporting majors over the coming years.


GasPro 2.0: A Webcast Symposium

Register Now

The global LNG industry is becoming increasingly interconnected as grassroots export projects get off the ground. Another technology route for processing gas into fuels—GTL—is attracting renewed attention due to improving economics. Small-scale solutions for both LNG and GTL are at the forefront of new technological developments, while major projects using more conventional technologies continue to start up around the world.

During this webcast, we will focus on LNG, GTL, gas processing technology developments and deployments, operations, small-scale solutions, transportation, trading, distribution, safety, regulatory affairs, business analysis and more.

October 25, 2018 08:30 AM CDT

Register Now

 

Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2018 Gulf Publishing Holdings LLC.