Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Hong Kong
  4. Hong Kong Stock Exchange
  5. PetroChina Company Limited
  6. News
  7. Summary
    857   CNE1000003W8

PETROCHINA COMPANY LIMITED

(857)
  Report
End-of-day quote. End-of-day quote Hong Kong Stock Exchange - 01/27
3.93 HKD   -0.25%
01/26China’s State-Owned Firms Post 30% Jump in 2021 Profit
MT
01/20Asian ADRs Move Higher in Thursday Trading
MT
01/20PETROCHINA : CLARIFICATION ANNOUNCEMENT - Form 6-K
PU
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

After bold bet on U.S. LNG, Sinochem seeks imports tie-up with PipeChina-sources

11/23/2021 | 04:59am EST
FILE PHOTO: A logo of Sinochem is seen outside an office building of Sinochem in Beijing

SINGAPORE (Reuters) - China's Sinochem Group is in advanced talks with state-owned PipeChina for using the energy infrastructure firm's liquefied natural gas (LNG) terminals after it struck a U.S. deal to buy the superchilled fuel, people with knowledge of the matter said.

The move comes after state-owned Sinochem, traditionally an oil and chemicals trader, announced its first-ever deal earlier this month to buy LNG from Cheniere Energy.

A deal for terminals with China Oil and Gas Pipeline Network, or PipeChina, is an important step in Sinochem's growth ambitions for LNG. For PipeChina, Sinochem will constitute a stable LNG customer and help offset weak demand from smaller importers due to volatile prices of the fuel.

China, which overtook Japan as the world's No.1 buyer of LNG this year, sees natural gas as a key bridge fuel along its path to reach carbon neutrality by 2060.

Sinochem and PipeChina did not immediately respond to requests for comment.

Sinochem aims to sign long-term deals to use PipeChina's terminals, including the new 6 million tonne per year (tpy) facility in Zhangzhou, Fujian province, that's due to start next year, said the sources, who requested anonymity because they're not authorised to speak to media.

"The company may start with trading, while also anchoring on a few domestic outlets within its own system," said Chen Zhu, managing director at consultancy SIA Energy.

One such outlet would be Sinochem's wholly owned refinery complex in Quanzhou, near Zhangzhou, that will utilise gas to make hydrogen used for refinery and petrochemicals processing, the sources said.

As PipeChina opens up terminals to firms outside state majors like PetroChina, poor contractual performance by smaller importers in a volatile spot market is adding to the appeal of Sinochem.

"PipeChina needs big players like Sinochem to commit to using the terminals to ensure reliable gas supplies," said one of the officials.

GAS TRADING

Sinochem started a Beijing-based gas trading team in early 2021, the sources said, joining national oil majors and local distributors such as privately controlled ENN Natural Gas Co in vying for a slice of the world's top LNG import market.

"Sinochem entered the market at an opportune time, as the evolving market needs traders who can be a bridge between smaller Chinese buyers and large global portfolio suppliers," said a Beijing-based LNG trader.

The company's trading teams in Singapore, Japan and London, and state-backed credit lines, make Sinochem an attractive buyer for gas suppliers, said the second official.

Cargoes to be supplied under the Cheniere deal are on a free-on-board basis, which means the company can sell them inside and outside China.

Sinochem first eyed entering gas trading in 2017, but only became established in early 2021 when Zhong Ren, a 30-year Sinochem oil trading veteran, was appointed president of its energy business and mapped out the gas plan, sources told Reuters.

"Sinochem sees LNG as a new area of growth beyond its oil and chemicals business... Mr. Zhong plays a pivotal role in that push," said a company source.

Still, Sinochem faces hurdles like lack of a domestic gas client base, a new trading team, and shipping and logistical challenges.

"(The U.S. deal) marks quite an aggressive move for (Sinochem), a new player with little end-user base in China," said a fourth official, with a state-run gas importer.

(Reporting by Chen Aizhu; Additional reporting by Jessica Janagathan; Editing by Florence Tan and Muralikumar Anantharaman)

By Chen Aizhu


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
ENN NATURAL GAS CO., LTD. -1.15% 17.22 End-of-day quote.-6.21%
PETROCHINA COMPANY LIMITED -0.25% 3.93 End-of-day quote.13.26%
All news about PETROCHINA COMPANY LIMITED
01/26China’s State-Owned Firms Post 30% Jump in 2021 Profit
MT
01/20Asian ADRs Move Higher in Thursday Trading
MT
01/20PETROCHINA : CLARIFICATION ANNOUNCEMENT - Form 6-K
PU
01/20Hong Kong Hang Seng Surges 3.4% on China Central Bank Rate Cuts
MT
01/20Honghua Arm Wins Nearly $79 Million Bid for Shale Gas Drilling Engineering Service Proj..
MT
01/20PetroChina Says Production Unaffected by Alleged Trading Violations of Unit
MT
01/20Beijing Sanctions PetroChina Over Illegal Crude Oil Reselling
MT
01/19China nets independent oil refiners, PetroChina unit in oil probe
RE
01/19PETROCHINA : Clarification announcement
PU
01/19China’s Central SOEs Post 29.8% Profit Jump in 2021
MT
More news
Analyst Recommendations on PETROCHINA COMPANY LIMITED
More recommendations
Financials
Sales 2021 2 422 B 381 B 381 B
Net income 2021 89 719 M 14 097 M 14 097 M
Net Debt 2021 314 B 49 375 M 49 375 M
P/E ratio 2021 7,72x
Yield 2021 6,34%
Capitalization 1 121 B 144 B 176 B
EV / Sales 2021 0,59x
EV / Sales 2022 0,54x
Nbr of Employees 432 003
Free-Float -
Chart PETROCHINA COMPANY LIMITED
Duration : Period :
PetroChina Company Limited Technical Analysis Chart | 857 | CNE1000003W8 | MarketScreener
Technical analysis trends PETROCHINA COMPANY LIMITED
Short TermMid-TermLong Term
TrendsBullishNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 19
Last Close Price 3,93 CNY
Average target price 3,65 CNY
Spread / Average Target -7,01%
EPS Revisions
Managers and Directors
Yong Zhang Huang President & Executive Director
Shou Ping Chai Chief Financial Officer & Secretary
Hou Liang Dai Chairman
Bo LŘ Chairman-Supervisory Board
Jigang Yang Chief Engineer
Sector and Competitors
1st jan.Capi. (M$)
PETROCHINA COMPANY LIMITED13.26%145 931
SAUDI ARABIAN OIL COMPANY3.07%1 966 113
SHELL PLC18.59%196 774
TOTALENERGIES SE14.43%150 210
EQUINOR ASA9.50%93 735
PUBLIC JOINT STOCK COMPANY GAZPROM-11.90%89 374