• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 15 hours Shale Oil will it self destruct?
  • 10 hours Berkeley becomes first U.S. city to ban natural gas in new homes
  • 4 mins Iran Loses $130,000,000 Oil Revenue Every Day They Continue Their Childish Games . . . .Opportunity Lost . . . Will Never Get It Back. . . . . LOL .
  • 6 hours Iran Captures British Tanker sailing through Straits of Hormuz
  • 19 hours Drone For Drone = War: What is next in the U.S. - Iran the Gulf Episode
  • 7 hours Renewables provided only about 4% of total global energy needs in 2018
  • 24 hours Today in Energy
  • 2 days Populist, But Good: Elizabeth Warren Takes Aim at Private-Equity Funds
  • 1 hour Oil Rises After Iran Says It Seized Foreign Tanker In Gulf
  • 2 days Mnuchin Says No Change To U.S. Dollar Policy ‘As of Now’
  • 1 day LA Solar Power/Storage Contract
  • 2 days Why Natural Gas is Natural
  • 10 hours U.S. Administration Moves To End Asylum Protections For Central Americans
Renewables On Track To Pass Nuclear Energy

Renewables On Track To Pass Nuclear Energy

Though coal is still the…

Oil Plunges As Iran Conflict Cools

Oil Plunges As Iran Conflict Cools

Oil prices plunged by 4…

Investment Firm Sets Sights On LNG Tankers In $3.8B Deal

LNG storage facility

Investment firm CBI Energy and Chemical plans to order up to 20 LNG carriers, probably at South Korean shipyards, in deals worth around US$3.8 billion, Reuters reported on Wednesday, quoting two people in the know.

CBI Energy and Chemical, held by Australian and Canadian investors, also wants to buy floating LNG production and import terminals in its attempt to grow in Asia and Africa. The firm will be seeking to take advantage of the low energy prices to procure supply at favorable prices, according to an email to Reuters sent by Tony Leung, director at CBI Investment Management Limited.

CBI Energy and Chemical’s business plans for Africa and Asia entail extraction of natural gas, sea transportation, power generation, chemical plants, LNG plants and an LNG distribution network, including retail gas.

“South Korea's LNG carriers are the best in terms of design, shipbuilding and delivery speed,” Reuters quoted an executive at CBI as saying.

If the deal were to materialize, it could help at least partially prop up South Korea’s ailing shipbuilding industry, which has been plagued by a decline in the shipping industry amid low commodity prices, low freight rates, global trade slowdown, and a vessel glut. In a sign that the industry is in a downturn, South Korea’s fourth-largest shipyard STX filed for receivership in May, and shipping company Hanjin filed for bankruptcy protection a few months later.

CBI Energy and Chemical’s move on the Asian gas market makes business sense, because according to the U.S. Energy Information Administration (EIA), Asia’s LNG imports rose in the first half this year, led by India and China. Japan, South Korea, China, India, and Taiwan combined accounted for 68 percent of global LNG imports last year. These five countries saw their combined imports rise by 1 percent in the first half this year, as higher Chinese and Indian imports more than offset declines in the mature LNG markets of Japan and South Korea, the EIA said.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play