Energy & Resources Talking Points 17-05-2016

EnergyTPB

Growing number of Chinese firms seeking clean energy investment abroad

Energy finance directors at Societe Generale have indicated that there are a growing number of Chinese companies involved in renewable energy investment overseas, with a clear acceleration in the trend observed over the last two years. The French multinational financial services group headquartered in Paris identified Chinese State-owned enterprises as leading the push including China General Nuclear Power Corporation, China Huadian Corporation and China Three Gorges Corporation. Societe Generale are estimating that there will be a specific rise in Chinese investment in the offshore wind industry, which allows for larger facilities and greater production than onshore wind farms. Click here to read the full article.

China to further enforce coal mine safety

During a meeting held in Anhui on the 6th of May, Chinese authorities have announced their intentions to further strengthen coal mine safety supervision and prohibition for coal mines planning production by themselves. It was also announced on the same occasion that China is set to publish, in the third quarter of this year, a blacklist of people in charge of coal mines where major accidents have occurred. The blacklisted candidates will be automatically disqualified. Click here for the full article.

Yingli Solar’s subsidiary on the edge of payment default

Baoding Tianwei Yingli New Energy Resources Co., a non-listed State Own Enterprise (SOE), is said to have a high risk of non-payment on a US$215.2 million five-year note maturing on the 12th of May. Solar power equipment have seen their prices on a free fall in recent years due to overproduction. Bonds defaults have increased since 2014, mostly in industries with overcapacity (steel, cement, etc.), as a consequence of the economic slowdown. Chinese firms delayed or cancelled over US$15 billion of new bond issuances in last month. Click here for the full article.

Crude oil tankers jams ports in eastern China

Crude oil tanker must wait in a line for days after arriving at Qingdao before being unloaded. In the past week, the queue has grown more than 10 deep off the port in east China, according to an Oil Terminal official based in Qingdao. Oil pipeline connecting Qingdao and Weifang is working at its maximum capacity of 45,000 tons/day, more than twice the amount in 2015. The logistic jam is said to be caused by importers rushing to stockpile oil as the prices were on the rise last February, from US$26 to US$45. This massive arrival of cheaper orders from earlier this year is a big challenge for the port’s logistic capacity. Click here for the full article.