Energy Finance

Energy Finance News Review

On August 8, National Development and Reform Commission (“NDRC”) announced news which says that the CPI in the first half of this year rose 2.3% compared with that of the same time period of last year and that the price level was maintained basically stable. NDRC further expressed that, by using the opportunity provided by the low level operations of price in general, strides has been made and active results have been achieved in streamlining administration and delegating power; reducing the items priced by government; narrowing the range for governmental pricing; improving the mechanism where price is decided by market; opening up and adjusting the price for a batch of products and services of governmental administration; and promoting environmental protection and solving production capacity surplus by using price lever.

NDRC further stressed that, in the second half of this year, it would continue to meet the demands of the Central Party Committee and State Council conscientiously and further open up pricing, adjust pacing and continue to open up the price for a batch of items to further streamline the price relationship of resource products, be initiative in using price level to promote energy-saving and emission reduction, and standardize pricing and fee-collection order to create good pricing environment for stable economical growth and structural transformation and upgrading.

The spokesman of Ministry of Foreign Affairs, Qingang announced on the 14th that, invited by the Nga Nebegue Doyle, President of Mongolia, Chinese President Xi Jinping would conduct state visit in Mongolia for two days from August 21 to August 22. According to foreign medias` report a bit early, Mongolia may, during Chinese leader`s visit, sign gas project and supply agreement with SinoPec, and the signing would help China to expand energy supply and revitalize foreign investments in Mongolia. Voice of Mongolia reported a bit early that with the visit to be made by Xi Jinping in Mongolia, China and Mongolia are expected to cooperate and exchange in fields of building industrial park and railway, etc.

Ministry of Finance announced a news on August 12th that, to meet the demands from the executive meeting of the State Council about increasing national venture capital funds to promote development of emerging industries, the financial agency from central government has released 2 billion Yuan special capital for developing strategic emerging industries to joint venture with local governments in order to attract social investors to contribute to establishing 49 venture capital funds. In 2009, China started to exercise venture plan for emerging industries and, as of to date, the financial agency from central government has cumulatively arranged 9.1 billion Yuan capital which has attracted 42.7 billion Yuan capital from local governments and society, and as a result, 190 venture capital funds have been established.

Energy Finance Data Analysis
China5e • Energy Index is a vane of China energy industry development condition, it includes Energy Composite Index, Oil & Gas Index, Power Index, Coal Index and New Energy Index.

  Energy Index of A Week
 

  Shanghai and Shenzhen Composite Index of A Week

Oil & Gas

Oil & Gas News Review
The Ministry of State Land and Resources agrees to set up North Guizhou Shale Gas Integrated Exploration Pilot Zone in its recent approval. Data shows that the geological reserves for shale gas in North Guizhou Shale Gas Integrated Exploration Pilot Zone is 3.88 trillion cubic meters with an area of 360 thousand square kilometers, and the construction lead-time shall be from 2014 to 2020.

As disclosed by the Urumqi Customs, the natural gas imported via Xinjiang in the first half of 2014 was 9.966 million tons with total value of 506 million US Dollars, rose for 4.9% compared with that of the same time period of last year.  In the natural gas imported in the first half the year, the gas from Turkmenistan was 9.223 million tons, taking up 92.5% in the total.

NDRC announced in the 12th deciding to raise the gate price by 0.4 Yuan/cubic meter for non-residential inventory natural gas, and the import price for LNG and the ex-plant price for shale gas, coal-bed methane and coal gas was further opened this time. As calculated by the personnel inside the circle, the price adjustment concerns 112 billion cubic meters of ntural gas, which means the whole natural gas industry would make 44.8 billion Yuan extra.

According to foreign medias, the law affiliated to the bill of energy reformation was passed by voting on August 6th local time in Mexico, and with the passage of the law, the 76 years of national monopoly in the oil industry in the country would be ended. And SinoPec had signed cooperative agreement with Mexico Oil Company before the passage, and both sides would have more chance to set up joint-venture.

In this week, Ukraine Parliament passed the sanctions aginst Russia, including energy embargo. Experts believe that if embargo is imposed for Russian energy, then Russian energy export will be reduced by 80%, the output from OPEC countries will be used for supplementing supply, and if western countries further expand sanctions against Russia and completely cut off the trading with Russia, the oil price shall rise up to 200 USD per barrel.

Oil & Gas Data Analysis

  World Crude Oil Price Table

   Major energy commodity price(8.11-8.15) (Unit: Yuan)

New Energy
New Energy News Review
It is learned from the chamber of commerce of the China Machinery Product Import and Export , the global photovoltaic battery exports from January to June, 2014 was 7.42 billion US Dollars, and in which Asia ranks the top with 3.82 billion US Dollars, North America ranks the second with 1.5 billion US Dollars, and Europe has to come off third best with 145.5 million US Dollars.

And, according to the latest forecasts from Blumberg on new energies' finance and economy, by 2030, the newly-added power installed capacity would exceed 1,477 GW. From 2013 to 2030, China shall increase its onshore wind power generating and solar photovoltaic power generating by 17 GW and 24 GW by average annually.  And by the end of 2030, half of the cumulative power generating installed capacity in China shall come from renewable energy power generating source. 

In the meantime, local governments are also speeding photovoltaic power construction. (Supplementary Notice from the Office of Hefei City People's Government) has been formally printed and issued, which stipulates that after July 1, for the rooftop photovoltaic power station project which is built and interconnected with installed capacity above 0.1 MW, 100,000 Yuan/MW bonus shall be given to the rooftop owner in one lump-sum as per the installed capacity, and bonus shall not exceed 1 million Yuan for one same rooftop owner.

Status about wind power industry: National Energy Administration recently issued the first batch of energy industry standards formulating (revising) plan (with total 627 items), in which 38 items would be finished in next year and the year after the next.

The (China Wind Power Industry Map 2013) announced by the Wind Energy Specialty Committee of China Renewable Energy Society shows that, in 2013, the newly-added wind power installed capacity in high elevation areas was 1415 MW, accounted for 8.8% of the total newly-added installed capacity nationwide, fell by nearly 3% compared with that of the same time period of previous year. And in 2013, the newly-added installed capacity in Guizhou and Qinhai rose, with installed capacity reached 683 /2 and 204.5 MW respectively.

In the first half of this year, both of the output and sales of new energies automobiles exceeded twenty thousands. The statistics from the China Automobiles Industry Association show that, in the first half this year, the output of new energies automobiles was 20,692, and the sales was 20,477, rose by 2.3 times and 2.2 times respectively, and both of the output and sales exceeded the total of last year.

New Energy Data Analysis

  International Solar Price (Unit: USD)