• 4 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 7 minutes Middle East on brink: Oil tankers attacked off Oman
  • 11 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 14 minutes The Latest: Iranian FM Says US Cannot Expect To ‘Stay Safe’
  • 9 mins The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 2 hours Ireland To Ban New Petrol And Diesel Vehicles From 2030
  • 8 hours US Shale Drilling lacks regulatory body.
  • 3 hours Solar Panels at 26 cents per watt
  • 3 hours Trudeau approves Trans Mountain Pipeline
  • 37 mins Venezuela's Maduro sneaks $300 million of gold out of country to Africa.
  • 6 hours Huge UK Gas Discovery
  • 1 hour The Plastics Problem
  • 8 hours OPEC, GEO-POLITICS & OIL SUPPLY & PRICES
  • 14 hours Why Is America (Texas) Burning Millions of Dollars Per Day Of Natural Gas?
  • 14 hours The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 7 hours Malaysia Oil & Gas Updates
  • 35 mins Coal Boom in Asia is Real and a Long Trend
  • 19 mins Fareed Zakaria: Canary in the Coal Mine (U.S. Dollar Hegemony)

Breaking News:

Oil Stabilizes On Small Crude Draw

China To Invest $7B In Floating LNG Offshore Africa

FLING

In a strategic push to become the world’s lowest-cost seller of floating LNG plants, China is planning on a US$7 billion investment spree in this type of projects offshore Africa, Reuters reported on Monday, citing bankers, industry sources, and energy consultants.

Despite the fact that spot LNG prices have dropped by 70 percent since 2014, and are under pressure from new capacity from the U.S. and Australia, China is one of investors that sees the current LNG glut ending at the beginning of the next decade.

Chinese banks are banking on energy markets’ recovery next decade, and unlike Western banks—that are currently reluctant to extend hefty funds to floating LNG projects—China has extended or committed to extend nearly US$4 billion to three FLNG projects offshore Africa. In addition, the Chinese plan to both finance and build production platforms for two more FLNG plants off Africa’s shores, worth a total of US$3 billion, Reuters’ sources say.

We see a real commitment to FLNG in China both from the construction side and from the LNG consumption side where decreasing costs mean potentially lower cost LNG,” Steve Lowden, chairman of Jersey-based NewAge that has FLNG projects off Congo Republic and Cameroon, told Reuters.

According to bankers, Chinese banks have “very deep pockets” and differ in their lending strategies from the Western banks.

“The difference is that in the West banks lend at the top of the market when they have most liquidity, but in China they're smarter and put money in at the bottom,” a financier who advises Chinese lenders on LNG shipping deals told Reuters.

China is also involved in the conventional Yamal LNG project in Russia’s Arctic, in which China’s CNPC and Silk Road Fund hold a 20 percent stake and 9.9 percent stake respectively. Chinese banks have provided two 15-year credit line facilities for the total amount of US$10.4 billion (9.3 billion euro) and US$1.43 billion (9.8 billion Chinese yuan). The financing from the Chinese banks is part of the project finance package totaling the equivalent of US$18.4 billion, says Yamal LNG, whose first production is scheduled for this year.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Bill Simpson on June 27 2017 said:
    Great. The more on the market, the lower the price will be.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News