Posts tagged ‘Sinopec’

26/03/2015

Hainan Airlines to buy 30 Boeing 787-9 jets, worth $7.7 billion by list price | Reuters

Hainan Airlines Co Ltd (600221.SS), China’s fourth-largest carrier, said on Wednesday it plans to order 30 Boeing Co (BA.N) B787-9 jets as it seeks to expand international routes to tap into growing demand for overseas travel from China.

The Boeing logo is seen at their headquarters in Chicago, April 24, 2013.  REUTERS/Jim Young

The order would be the biggest this year for the jet, worth $7.7 billion (5 billion pounds) according to list prices. It would also boost the aircraft maker’s 787 programme backlog to 855 planes.

China’s airline passengers are increasingly looking beyond the mainland for travel opportunities. In 2014, Chinese travellers made more than 100 million trips overseas in a year for the first time, up sharply from 8.4 million in 1998, official data show.

Hainan Airlines added two long-haul routes to North America and Western Europe last year and plans major international expansion this year, Cai Zhiquan, a brand manager told Reuters. On Thursday. it reported net profit jumped 20 percent in 2014 to 2.59 billion yuan ($417 million).

“We’ll be flying from major hubs in China to second- or third-tier cities overseas,” said Cai. “At the same time, we’ll also open up more routes from inland Chinese cities to major hub cities elsewhere.”

via Hainan Airlines to buy 30 Boeing 787-9 jets, worth $7.7 billion by list price | Reuters.

22/10/2014

Boeing and Chinese partner to make jet fuel from ‘gutter oil’ | Reuters

Aircraft makers Boeing and Commercial Aircraft Corp of China have launched a joint pilot project to turn used cooking oil into jet fuel.


Embed from Getty Images

Their plant, based in the southeastern Chinese city of Hangzhou, will be able to convert just under 240,000 litres a year of used cooking oil into fuel, Boeing said in a statement.

The project will allow the two aircraft makers to test the viability of producing biofuel using the cheap and widely available form of cooking waste, referred to in China as “gutter oil“.

Boeing and its Chinese state-owned partner estimate that 1.8 billion litres of fuel could be produced in China a year using gutter oil.

In February, the Civil Aviation Administration of China granted a subsidiary of state-owned behemoth Sinopec Corp a licence to produce jet fuel from used cooking oil.

Gutter oil has long been a public health concern in China due to its widespread use in restaurants. Used cooking oil can contain toxic compounds and is often considered insanitary.

Chinese media reported in 2010 that crime rings were collecting used cooking oil from sewers and drains, rebottling it and selling it as new.

Over the past two years, dozens of people have been given lengthy prison sentences for the scam, which has made many Chinese in major cities sick. Last year one man was sentenced to life in prison for making and trafficking gutter oil.

via Boeing and Chinese partner to make jet fuel from ‘gutter oil’ | Reuters.

09/08/2014

China’s Shale-Gas Production Target Cut in Half by Top Official – Businessweek

Tapping China’s vast shale-gas reserves has proved more difficult than government planners in Beijing once hoped. In 2012, China’s National Energy Administration projected that, by 2020, from 60 billion to 80 billion cubic meters (bcm) of domestic shale gas would be pumped annually. Earlier this week the country’s energy chief, Wu Xinxiong, slashed the goal in half, to 30 billion bcm by 2020.

A shale well at Fuling, owned by Sinopec, China's largest oil refiner, in Chongqing, southwest China on April 21

According to the U.S. Energy Information Administration, China’s holds the world’s largest reserves of theoretically recoverable shale gas. But much of it is locked in mountainous regions in western China.

While China’s leaders—concerned about steeply rising energy demand accompanying rapid urbanization—dearly want to emulate the U.S.’s shale-gas boom, it turns out Americans have several practical advantages. For starters, the U.S. shale-gas revolution kicked off in fairly accessible regions: the flatlands of Texas, North Dakota, and Pennsylvania.

So far, explorations in China have identified only one clearly promising shale play: Fuling shale gas field, near the western megalopolis of Chongqing. Sinopec, which controls the Fuling field, projects that its annual shale gas production will reach 5 bcm by 2015 and 10 bcm by 2017. (China trivia fact: Fuling was also the site of River Town, well-known journalist Peter Hessler’s first book chronicling his years as a Peace Corps volunteer in the then-small city on the Yangtze.)

With no other comparable sites yet identified, it’s not clear where the other 20 bcm may come from. While Sinopec is currently at the forefront of China’s shale-gas development, two foreign companies, Royal Dutch Shell (RDSA:LN) and Hess (HES), have secured production-sharing contracts for other potential sites.

via China’s Shale-Gas Production Target Cut in Half by Top Official – Businessweek.

09/01/2014

China energy safety probe exposes 20,000 potential risks | Reuters

China has uncovered nearly 20,000 disaster risks in its oil and gas sector during a nationwide safety probe following a pipeline blast that killed 62 people last year, the country\’s safety watchdog said on Thursday.

A man wears a mask while walking past a debris-covered basketball court of a school a day after an explosion at a Sinopec Corp oil pipeline in Huangdao, Qingdao, Shandong Province November 23, 2013. REUTERS/Aly Song

Checks on some 3,000 petrochemical firms and oil storage sites found nearly 20,000 potential hazards, Wang Haoshui, an inspector with the safety agency, told reporters.

\”Oil and gas pipelines are buried underground… It is hard to inspect (them) and find the hidden dangers,\” said Wang, adding that the agency had already urged the parties involved to fix the problems.

China has 655 trunk oil and gas pipelines with a total length of 102,000 km. Some of them have been operating for as long as 40 years, making them vulnerable to corrosion, Huang Yi, a spokesman for the State Administration of Work Safety, told a news briefing.

\”What worried us is that some oil pipelines overlap with urban infrastructure pipes, causing many hidden dangers.\”

The government launched the probe in December.

The November explosion at the Dongying-Huangdao II pipeline owned by top Asian refiner China Petroleum & Chemical Corp (Sinopec) was attributed to pipeline corrosion, irregular work practices and a tangled network of underground pipes, Huang said.

The blast in the eastern city of Qingdao that killed 62 people resulted from pipeline corrosion that led to a leak, which was ignited in turn by sparks from a hydraulic hammer used on the day of the accident, he said.

The probe team has submitted its findings to China\’s cabinet, the State Council, and the results will be released to the public after they have been approved, he added.

Industry officials expected stiff punishment for Sinopec over the blast, which also injured 136 and caused direct economic loss of 750 million yuan ($123.9 million).

via China energy safety probe exposes 20,000 potential risks | Reuters.

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07/09/2013

China’s Sinopec to produce cleaner gasoline from October

Reuters: “China‘s Sinopec Corp will produce lower sulfur gasoline from October, three months ahead of an official mandate, as part of a national effort to clear up the smoggy air of Chinese cities.

Except for two subsidiary plants that are undergoing maintenance, the top Asian refiner will cut sulfur in all its gasoline production from 150 parts per million (ppm) to 50 ppm from October 1, a company official said.

The new standard, national IV, is similar to Euro IV.

China, the world’s second-largest oil consumer that burns roughly two million barrels per day of gasoline, rolled out in 2011 the national IV standard for gasoline and set a January 2014 deadline to make it applicable nationally.

Despite slowing economic growth, Chinese demand for gasoline has expanded much faster than diesel this year, thanks to strong growth in car sales.

Subsidiary plants in Fujian and Hainan will move to the new grade in November after overhauls, the company official said.”

via China’s Sinopec to produce cleaner gasoline from October | Reuters.

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29/08/2013

China environment min suspends some approvals for Sinopec, CNPC

Reuters: “China’s environment ministry will stop approving some new refining projects and upgrades of existing facilities by the country’s top state-owned oil firms after the two failed to meet key pollution targets in 2012, it said on Thursday.

Workers walk inside China National Petroleum Corporation (CNPC) Lanzhou Chemical Company in Lanzhou, capital of northwest China's Gansu province April 27, 2007. REUTERS/Jason Lee

The Ministry of Environmental Protection (MEP) said China National Petroleum Corporation (CNPC) failed to meet targets to cut chemical oxygen demand in 2012, while Sinopec Group failed to meet a target to cut nitrogen oxide emissions.

Officials from the companies were not immediately available for comment, although the Communist Party mouthpiece People’s Daily said the MEP’s move would have no impact on 790,000 barrels per day of refining capacity now under construction.

The ministry said in a notice posted on its website (www.mep.gov.cn) that it would suspend approvals of environment impact assessments for all new refining projects from the two oil giants, apart from any upgrades that target fuel pollution specifications or other environmental renovations.

“Such tough punishment on the two oil majors is unprecedented – it is a warning to others,” said Wang Tao, resident scholar at the Energy & Climate Program of the Carnegie-Tsinghua Center for Global Policy in Beijing.

“But the MEP has only suspended approval for their new refineries, and what we really need is for them to take strong measures to curb pollution from existing refineries,” said Wang.

CNPC is the parent of PetroChina, China’s dominant oil and gas producer. Sinopec Group is the parent of top Asian refiner Sinopec Corp.

The MEP and its local branches have struggled to impose their will on state-owned industrial enterprises, which are big sources of economic growth as well as pollution. But Beijing has promised to get tough on firms accused of ignoring environmental rules or approval procedures.

People’s Daily said on Thursday the decision “demonstrated China’s determination when it comes to pollution emissions.””

via China environment min suspends some approvals for Sinopec, CNPC | Reuters.

See also: https://chindia-alert.org/economic-factors/greening-of-china/

28/10/2012

* Protests Against Expansion of China Chemical Plant Turn Violent

The Chinese public are increasingly taking to the streets when environmental and other disturbing issues seem to be intractable. Initial police response is almost invariably violent. But, as has happened so often before, with social media and the internet and camera phones, it is becoming harder and harder for the authorities to assert their physical power as they used to. Not only do these incidents gain national coverage but, as this article shows, often they get international press as well. Something the central authorities do not welcome at all.

NY Times: “A week of protests against the planned expansion of a petrochemical plant in the port city of Ningbo turned violent on Friday and Saturday when demonstrators attacked police cars and tossed bricks and water bottles at officers, according to accounts from participants posted on the Internet.

The protesters, who witnesses said numbered in the thousands, were opposing the expansion of a state-run Sinopec plant, which is already one of the nation’s largest refineries. Local residents, citing environmental concerns, have been demanding that the government move the plant from Ningbo, a prosperous city of 3.4 million in Zhejiang Province, not far from Shanghai.

The clashes come at a delicate time for the government, as it prepares for a once-a-decade change in leadership that is scheduled to begin on Nov. 8 during a weeklong series of meetings in Beijing. Public concerns about industrial pollution have become a problem for the governing Communist Party, which often backs economic growth over public concerns about environmental degradation.

In recent years, educated urbanites have harnessed social media to stage street protests against the construction or expansion of factories, mines and refineries. Although such demonstrations are illegal and organizers face arrest, they sometimes have the desired effect.

In July, officials in Shifang, a city in China’s southwest Sichuan Province, canceled plans for a huge copper smelter after tens of thousands of residents joined protests that turned violent. In September 2011, a solar energy company in Jiaxing, near Shanghai, was closed after demonstrators cited noxious chemicals used in the manufacturing process. And in August of that year, officials in Dalian, in northeastern China, said a petrochemical plant would be closed and relocated after at least 12,000 people took to the streets.

In a statement, the Zhenhai district government condemned those it blamed for organizing sit-ins and blocking roads in Ningbo but insisted that public sentiment would be taken into consideration before the start of construction. “Detailed information will be published when environmental reviews are implemented, and public opinions on the project will be heeded,” the statement said.

Residents have expressed concern about the refinery’s production of ethylene and paraxylene, known as PX, a toxic petrochemical used in plastics, paints and cleaning solvents. The demonstrations, which began on Monday when 200 farmers blocked a road near the district government’s office, according to the state media, grew larger on Friday, reportedly after student organizers issued calls through social media outlets.

Photographs of the weekend demonstrations, many taken by cellphone, appeared to show riot police officers swinging batons as they chased protesters or beat those who had fallen to the ground. Censors worked quickly to delete images and witnesses’ accounts posted on Sina Weibo, China’s popular microblogging service. The Information Center for Human Rights and Democracy, an organization based in Hong Kong, said 10 people were injured after the police fired tear gas and moved to break up the protests, which took place in Tianyi Square in downtown Ningbo.

In a series of online posts on Saturday, Chen Yaojun, a local lawyer, described how the police had quickly tackled and dragged away protesters who dared to chant slogans. He said he, too, was arrested after he tried to protect a young student who was being beaten by the police. After he was dragged into a police van, Mr. Chen said, he talked to a young policeman who expressed regret for the rough handling of the protesters. “We have no choice,” the officer told him.”

via Protests Against Expansion of China Chemical Plant Turn Violent – NYTimes.com.

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07/08/2012

* In China’s Power Nexus, a Tale of Redemption

WSJ: “Liu Minghui’s battle to clear his name and save his business, a fight that pitted him against some of the most powerful forces in China, began the day of his company’s Christmas party in 2010.China Gas

Mr. Liu was set to leave his 18th-floor office in Shenzhen to cross the nearby border to Hong Kong for the party when plainclothes Public Security Bureau officers arrested him on suspicion of stealing money from the company he ran and co-founded, China Gas Holdings Ltd.

The former managing director spent nearly the next year in a Chinese jail, during which time he was forced to leave his executive and board roles at the company while remaining a substantial shareholder. He emerged from detention in time to see one of the country’s biggest companies launch a hostile offer for China Gas, the first by a state-owned business against a privately controlled company.

Now Mr. Liu’s comeback is nearly complete. He has been exonerated in the embezzlement case and is poised to win his fight with state-owned energy giant China Petroleum & Chemical Corp., or Sinopec, and its partner, ENN Energy Holdings Ltd. The bidding consortium on Monday extended the deadline for the US$2.15 billion offer until early September, saying the bid is still waiting regulatory approval. But with the stock trading at a 22% premium to the offer price of 3.50 Hong Kong dollars a share, the group seems unlikely to attract the shareholder support needed to take control.

The case highlights the harsh nature of business in China, where the legal system is opaque and the fate of companies can be decided in Beijing. It remains unclear why Mr. Liu was arrested and then cleared, why Sinopec bid for his company and why a surprising group of white knights came to Mr. Liu’s rescue.”

via In China’s Power Nexus, a Tale of Redemption; Sinpec, China Gas, Liu Menghui – WSJ.com.

In the same issue of WSJ.com, this article shows the positive (though still opaque) side of Chinese criminal justice and another the opposite: https://chindia-alert.org/2012/08/07/chinese-criminal-procedure-at-its-worst/

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