In today’s talking points: China Building Two Wind Turbines Every Hour, International Energy Agency; Sinopec’s Zhenhai Plant Receives Large Investment Boost; Chinese steel mills expecting surge in domestic orders after G20 summit; China fund among backers of $7.3 billion sale of Australian port
China Building Two Wind Turbines Every Hour, International Energy Agency
China is home to the world’s largest programme of wind turbine installation. The International Energy Association warns, however, that much of the time China’s wind turbines sit idle. While the generation capacity of China’s wind infrastructure is high, the country lacks the means to supply grid areas when demand is highest. Lu Kang, China’s Foreign Ministry spokesman, stated recently, “China has made great efforts in areas including reducing emission, environmental protection and developing renewable sustainable energy.” The integration of renewables with existing grid infrastructure, however, remains a complex question.
Sinopec’s Zhenhai Plant Receives Large Investment Boost
Sinopec plans to spend 16.9 billion yuan upgrading its refinery at Zhenhai in Zhejiang province. The refinery subsidiary, Zhenhai Refining & Chemical Co, is Sinopec’s largest refining unit and is targeted for increased production in light of the current slump in crude oil prices. Lin Boqiang of the Center for Energy Economics Research at Xiamen University said the downward trend in oil prices is likely to prevail for a while, and that Sinopec was prudent in its strategy to invest in its refining business.
Source: China Daily
Chinese steel mills expecting surge in domestic orders after G20 summit
As a result of China’s hosting of the G20 summit this month, steel mills within a 300km radius of Hangzhou were given orders to cut emissions from the end of last month in attempts to reduce pollution and ensure clear skies. Chinese steel mills and traders are now expecting domestic orders to rise in the short term, as a result of low steel inventories from the reduction in crude steel production. Domestic Chinese steel prices have risen by 35 percent since the beginning of the year however China is still extremely competitive on costs with huge demand from Southeast Asia and South Korea.
Source: The Australian
China fund among backers of $7.3 billion sale of Australian port
A consortium of funds has agreed to purchase Port of Melbourne for a higher-than-expected- $7.3 billion, one of the country’s largest privatisation deals to date. The Victorian state government had previously hoped to sell the port for $5.8 billion however tough equity markets are increasing demand for infrastructure. China Investment Corp is one of the major investors in the sale of the Port, which is packaged as a 50-year lease. The sell-off is part of Australia’s major privatisation program with both state and federal governments selling off ‘mature’ infrastructure assets.