China In-Focus — Asian giant issues new oil import quotas for private refineries; Sinopec produces first biojet fuel

The new allowances bring China’s total non-state import quotas to 161.69 million tons so far this year, compared to 157.83 million tons during the same period of 2021.
The new allowances bring China’s total non-state import quotas to 161.69 million tons so far this year, compared to 157.83 million tons during the same period of 2021.
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Updated 28 June 2022

China In-Focus — Asian giant issues new oil import quotas for private refineries; Sinopec produces first biojet fuel

China In-Focus — Asian giant issues new oil import quotas for private refineries; Sinopec produces first biojet fuel

BEIJING: China has issued 52.66 million tons of crude oil import quotas to non-state refiners in a second batch of allotments for 2022, up 49 percent from the same slot last year, four people with knowledge of the matter said.

The new allowances bring China’s total non-state import quotas to 161.69 million tons so far this year, compared to 157.83 million tons during the same period of 2021.

Thirty-six refiners have been granted the quotas, with mega-refinery Zhengjiang Petroleum and Chemical Corp. and Hengli Petrochemical receiving the most, at 10 million tons and 6 million tons respectively.

Sinopec produces first biojet fuel at east China refinery

China’s Sinopec Corp. produced its first aviation fuel from used cooking oil at an industrial-scale facility in east China, the state refining giant said on Tuesday.

The biojet facility, built in Sinopec Zhenhai Refining and Chemical Co. and able to process 100,000 tons of used cooking oil or “gut oil” each year, paves the way for Sinopec to start commercial manufacturing of the biofuel.

Biojet fuel cuts the emission of carbon dioxide by more than half over the whole lifecycle, Sinopec added.

Sinopec began developing the fuel in 2009 and in 2014 won the country’s first airworthiness certificate for the fuel.

The International Energy Agency predicted in late 2021 that global biojet demand could range between 2 to 6 billion liters by 2026, up from around 0.1 billion liters.

PetroChina may sell Australian, Canadian assets to stem losses

PetroChina may sell out from natural gas projects in Australia and oil sands in Canada to stem losses and divert funds to more lucrative sites in the Middle East, Africa and central Asia, Reuters reported quoting two people familiar with the matter.

PetroChina’s plan follows a similar strategic shift by smaller state peer CNOOC Ltd., which was preparing to exit its operations in Britain, Canada and the US because of concerns the assets could become subject to Western sanctions.

The sales follow an internal review of PetroChina’s global portfolio that began last year, the two sources said, declining to be named as the discussions are not public.

Unlike CNOOC’s sales, PetroChina’s divestitures are driven more by the assets’ disappointing economics than any fear of US sanctions as it does not own any oil and gas assets in the US, though political strains with Australia and Canada also played a part, they said.

The state oil and gas major hopes to sell some of these assets, which have incurred billions of dollars of losses and are in areas where the company cannot easily compete, in the next two years, the sources said.

“Australian gas assets — both Arrow Energy and Browse — are considered among the top ‘negative assets’ in PetroChina’s global portfolio. It’s also an area where CNPC has little competitive edge,” said one of the sources.

 

(With input from Reuters) 


Allianz planning to sell stake in Saudi Arabia unit: Bloomberg

Allianz planning to sell stake in Saudi Arabia unit: Bloomberg
Updated 14 sec ago

Allianz planning to sell stake in Saudi Arabia unit: Bloomberg

Allianz planning to sell stake in Saudi Arabia unit: Bloomberg

RIYADH: German insurer Allianz is planning to sell its Saudi Arabia unit, as the firm eyes streamlining its portfolio and raising cash, Bloomberg reported quoting people familiar with the matter. 

According to the report, Allianz is currently working with an adviser to sell its controlling stake in Allianz Saudi Fransi Cooperative Insurance Co.

To date this year, shares of Allianz Saudi Fransi have dropped about 44 percent and the company’s market value currently stands at roughly $231 million. 

The people who wished to stay anonymous noted that some insurers have expressed preliminary interest in acquiring the business. 

They, however, made it clear that deliberations are still at their early stages, and Allianz may even decide to retain the asset. 

Allianz Saudi Fransi was established in 2007 and is a joint venture of Allianz Group and Banque Saudi Fransi. According to its annual report, Allianz holds 51 percent of the firm’s shares.

 


Qatar Airways to resume operations to Qassim, adds 4 flights to Riyadh

Qatar Airways to resume operations to Qassim, adds 4 flights to Riyadh
Updated 8 min 4 sec ago

Qatar Airways to resume operations to Qassim, adds 4 flights to Riyadh

Qatar Airways to resume operations to Qassim, adds 4 flights to Riyadh

RIYADH: Qatar Airways will resume its operations to Qassim, its fifth destination in Saudi Arabia, according to a statement. 

The flights will operate three days weekly starting Aug. 22 and will increase to four from Sept. 2.

The airline will also introduce four additional weekly flights to Riyadh starting Aug. 18, bringing the total flight to 20 per week to meet the growing demand.

Currently, Qatar Airways operates 93 weekly flights to four cities in Saudi Arabia, following the latest additions, the total number of weekly flights to the Kingdom will reach 101. 


Saudi-listed East Pipes seeks capital hike as it posts 190% profit jump

Saudi-listed East Pipes seeks capital hike as it posts 190% profit jump
Updated 42 min 29 sec ago

Saudi-listed East Pipes seeks capital hike as it posts 190% profit jump

Saudi-listed East Pipes seeks capital hike as it posts 190% profit jump

RIYADH: Saudi-listed East Pipes Integrated Co. for Industry’s board has proposed a capital raise of 50 percent, after reporting a higher second-quarter profit.

The pipe manufacturer is looking to increase its current capital of SR210 million ($56 million) to SR315 million through granting bonus shares, according to a bourse filing.

Shareholders will receive 0.5 shares for every one share held through the capitalization of SR105 million from retained earnings.

“The objective of the proposed bonus shares is to provide sustainable returns to shareholders, whilst supporting the company’s strategic investment plans,” the filing stated.

East Pipes had earlier reported a 190 percent year-on-year surge in profits to SR6.2 million for the second quarter of 2022, buoyed by a higher sales volume.


NRG Matters — Egypt eyes $10bn renewables plan; ADNOC Drilling awarded offshore rigs contracts

NRG Matters — Egypt eyes $10bn renewables plan; ADNOC Drilling awarded offshore rigs contracts
Updated 50 min 37 sec ago

NRG Matters — Egypt eyes $10bn renewables plan; ADNOC Drilling awarded offshore rigs contracts

NRG Matters — Egypt eyes $10bn renewables plan; ADNOC Drilling awarded offshore rigs contracts

RIYADH: Egypt is eying $10 billion of renewables to replace inefficient thermal fossil fuel power plants. 

In an effort to drive the country’s carbon emissions reduction goal, the precuts are expected to be delivered by the private sector, according to MEED.

US motors

A group representing General Motors, Toyota Motor, Volkswagen and other major automakers said a $430 billion bill approved by the US Senate will put achieving electric-vehicle adoption targets for 2030 in jeopardy.

The Alliance for Automotive Innovation had warned that most EV models would be ineligible for a $7,500 tax credit for US buyers under the bill, Reuters reported. 

Offshore rigs

ADNOC Drilling has been awarded two contracts totaling over 12.6 billion dirhams ($3.4 billion) to hire eight jack-up offshore rigs, Trade Arabia reported. 

Awarded by ADNOC Offshore, the contracts will support the expansion of the firm’s crude oil production capacity to 5 million barrels per day by 2030 and enable gas self-sufficiency for the UAE.


TASI ends higher on strong earnings reports: Closing bell

TASI ends higher on strong earnings reports: Closing bell
Updated 51 min 36 sec ago

TASI ends higher on strong earnings reports: Closing bell

TASI ends higher on strong earnings reports: Closing bell

RIYADH: Saudi Arabia’s benchmark index ended Monday higher after a wave of earnings reports boosted investor sentiment.

The Tadawul All Share Index added 0.66 percent reaching 12,297, while the parallel market, Nomu, climbed 1.36 percent at 22,072.

The Saudi British Bank climbed 1.44 percent, while the Kingdom’s oil giant Saudi Aramco added 0.13 percent.

The Saudi National Bank, the Kingdom’s biggest lender, ended the day 1.82 percent higher, while Alinma Bank rose 1.07 percent.

The Middle East Paper Co. gained 2.83 percent, following a 216 percent increase in first half profits.

The Wafrah for Industry and Development Co. rose 2.79 percent, following the signing of a $4 million contract with German GEA Food for meat production.

Bank Albilad rose 2.62 percent, following the announcement of the establishment of Enjaz Payment Services Co., a closed joint-stock company located in Riyadh.

Almarai Co. increased 0.56 percent, following the announcement of the re-appointment of Prince Naif bin Sultan bin Mohammed bin Saud Alkabeer as chairman and Suliman Al-Muhaideb as vice chairman.