2025-08-26 11:51
Aug 26 (Reuters) - PetroChina (601857.SS) , opens new tab on Tuesday proposed to take over three natural gas storage facilities from its controlling shareholder, state-owned China National Petroleum Corporation, in a deal worth 40.02 billion Chinese yuan ($5.59 billion). The deal comes as PetroChina looks to ensure stable operation and high-quality development of its natural gas industrial chain. Sign up here. The transaction is estimated to add 10.97 billion cubic metres of working gas storage capacity to the company's portfolio. PetroChina is riding the country's increasing reliance on natural gas, a lower-emission fuel viewed as a key bridge in its shift to greener energy. The largest Chinese oil and gas firm posted a 5.4% decline in first-half net income earlier in the day. However, the company's gas segment reported 18.6 billion yuan in earnings, which was higher than the amount logged in the same period a year ago. PetroChina expects Chinese oil demand to continue facing competition from alternative energy. However, it projects natural gas demand to recover and grow rapidly. ($1 = 7.1529 Chinese yuan renminbi) https://www.reuters.com/business/energy/petrochina-buy-natural-gas-facilities-cnpc-559-billion-deal-2025-08-26/
2025-08-26 11:47
TOKYO, Aug 26 (Reuters) - Japan's industry and land ministries on Tuesday proposed revising guidelines to extend offshore wind project leases by 10 years, from the current 30 years, to help developers manage soaring construction costs and complete projects. The proposal was submitted to a joint expert panel of the Ministry of Economy, Trade and Industry (METI) and the Ministry of Land, Infrastructure, Transport and Tourism (MLIT). Sign up here. Under current operational guidelines for public tenders in general maritime areas, operators must remove their facilities within the 30-year permit period, after which a new tender is held. The proposed revision would allow operators to renew their permits if they meet certain conditions. Because current guidelines require construction, operation, and decommissioning to be completed within 30 years, actual operations typically last only about 20 years. Extending the period would boost electricity sales, improve cash flow for project-finance loan repayments, attract a broader range of equity investors, and allow for earlier capital recovery, some panel members have said. The new guidelines will apply from the next auction round, a land ministry official said, adding that no decision has been made on whether it will cover the past three rounds. Japan's government has been expected to sweeten terms for developers to build a large-scale offshore wind sector as it seeks to revive ambitions derailed by soaring costs and global project delays. The government aims to have 45 gigawatts of offshore wind capacity by 2040 to cut reliance on imported coal and gas, reduce carbon emissions, and bolster energy security. It had 0.3 GW at the end of 2024. But progress has stalled after three major auction rounds. Trading house Mitsubishi Corp (8058.T) , opens new tab, the winner in the first auction in 2021, warned in February that surging costs had forced it to reassess its plans. Despite the planned lease extension, a Mitsubishi-led consortium is preparing to withdraw from three offshore wind projects due to profitability concerns, several Japanese media reported late Tuesday. https://www.reuters.com/sustainability/climate-energy/japan-proposes-10-year-extension-offshore-wind-farm-leases-ease-cost-pressures-2025-08-26/
2025-08-26 11:46
Groups led by Mitsubish won projects to provide 1.76 GW Mitsubishi Corp spokesperson says nothing decided yet Japan seeking energy security, proposes extending wind project leases TOKYO, Aug 26 (Reuters) - Mitsubishi Corp (8058.T) , opens new tab-led consortia are preparing to withdraw from three offshore wind power projects in Japan's Chiba and Akita prefectures due to concerns over profitability, the Nikkei business daily reported on Tuesday. Japan, the world's second liquefied natural gas (LNG) buyer after China, has turned to wind and solar energy as well as nuclear power station restarts to bolster energy security and achieve carbon neutrality by 2050. Sign up here. In 2021, groups led by Mitsubishi were selected to operate three projects in the Akita prefecture in the north and the Chiba prefecture to the east of Tokyo, with total projected capacity of 1.76 gigawatt (GW) to be launched in 2028-2030. A Mitsubishi Corp spokesperson told Reuters nothing had been decided, adding that the company is still examining its domestic offshore power projects. Japan's industry ministry, or METI, could not be immediately reached for a comment. Japan is targeting future offshore wind farm capacity of 10 GW by 2030 and 45 GW by 2040. It has held three offshore wind auctions, the first of which, for the projects in Akita and Chiba, was won by the Mitsubishi-led consortia. Sources have said Japan was likely to sweeten terms for offshore wind developers, including foreign players such as Germany's RWE (RWEG.DE) , opens new tab, Spain's Iberdrola (IBE.MC) , opens new tab and BP (BP.L) , opens new tab, as some other players decided to quit. In a sign of commitment to the offshore wind industry despite Mitsubishi's issues, Japan's industry and land ministries on Tuesday proposed revising guidelines to extend offshore wind project leases by 10 years, from the current 30, to help developers manage soaring construction costs and complete projects. In February, Mitsubishi said it was reviewing how to proceed with its offshore wind projects in Japan given a "significantly changed" business environment, showing Japan's vulnerability to rising costs across offshore wind projects globally. Earlier this year, METI acknowledged the renewable energy rollouts could be behind the schedule, predicting that Japan's demand for LNG could be on the rise again as artificial intelligence booms, after years of decline. https://www.reuters.com/business/energy/mitsubishi-led-groups-withdraw-three-offshore-wind-projects-japan-nikkei-says-2025-08-26/
2025-08-26 11:39
BEIJING, Aug 26 (Reuters) - Losses at China's top solar manufacturers mostly widened in the first half of 2025, but analysts said restructuring to cut oversupply could help return the industry to profitability. In a rare bright spot, Longi Green Energy's net loss narrowed to 2.6 billion yuan ($364 million) in the first six months of the year from 5.2 billion yuan a year earlier. Sign up here. Huatai Securities analysts in a Monday note attributed the improvement to "strengthened internal management" leading to lower costs and reduced asset impairment losses, while a surge in domestic solar panel installations because of frontloading had also supported sales. A series of meetings involving a widening circle of government ministries has signalled that authorities are taking more seriously a campaign to crack down on deflationary price wars, where companies have sold at below cost to undercut competitors. "Progress on domestic 'anti-involution' measures has been smooth, which may support an industry chain profitability recovery," the Huatai analysts said. Other top manufacturers' losses widened. Jinko Solar's (601778.SS) , opens new tab first-half net loss was 2.6 billion yuan, compared with 87 million yuan a year earlier. Jinko cited falling solar module prices as a result of rising production capacity, supply-demand imbalances and trade barriers. Trina Solar (688599.SS) , opens new tab swung to a loss of 2.9 billion yuan from a year earlier net profit of 526 million yuan, as module sales increased but prices fell. However, its energy storage business recorded its first-ever quarterly profit in the second quarter, according to Citi analysts. Signalling further expansion, Trina is making a capital injection of 800 million yuan into the subsidiary, according to a June filing. JA Solar's (002459.SZ) , opens new tab losses widened to 2.58 billion yuan from 874.2 million, while Tongwei (600438.SS) , opens new tab reported the biggest loss of the five, at 5 billion yuan, up from 3.1 billion a year earlier. Analysts including Huatai Securities and Citi maintained a "buy" rating on Tongwei on the expectation that the upstream polysilicon segment, in which Tongwei is also a major player, would benefit most from restructuring. https://www.reuters.com/sustainability/climate-energy/chinas-solar-industry-losses-balloon-falling-prices-2025-08-26/
2025-08-26 11:35
Aug 26 (Reuters) - China's net gold imports via Hong Kong rose 126.81% in July from June, Hong Kong Census and Statistics Department data showed on Tuesday. WHY IT'S IMPORTANT As the world's leading gold consumer, China's purchasing activities can significantly influence global gold markets. Sign up here. The Hong Kong data may not provide a complete picture of Chinese purchases, as gold is also imported via Shanghai and Beijing. BY THE NUMBERS Net imports via Hong Kong to China for July stood at 43.923 metric tons, compared to 19.366 tons of net imports in June. China's total gold imports via Hong Kong reached 58.296 tons in July, down 67.91% from 34.719 tons in June. CONTEXT China's central bank added gold to its reserves in July, its ninth consecutive month of purchases, official data showed earlier this month. Global gold demand including over-the-counter (OTC) trading rose by 3% year-on-year to 1,248.8 metric tons in the second quarter of 2025 as investment jumped 78%, the World Gold Council said last month. KEY QUOTE "I guess Chinese investors still are looking at gold [to diversify their asset base], and therefore we have seen a shift in flows towards China in July," said UBS commodity analyst Giovanni Staunovo. "Also the Shanghai gold price traded above the London price most of the time in July, an indication of solid demand last month, although this month it was less so," Staunovo added. https://www.reuters.com/world/asia-pacific/chinas-net-gold-imports-via-hong-kong-more-than-doubled-july-2025-08-26/
2025-08-26 11:34
NEW DELHI, Aug 26 (Reuters) - India is exploring the idea of using gas-fired power plants only to meet the surge of electricity demand during the peak summer months of May and June due to higher costs, an adviser to the power ministry said on Tuesday. The share of gas in India's power generation has fallen to about 1.5% from 3% in 2020, as prices have hit $12 per million British thermal units and ranged between $8 and $18 over the last two years, meaning other forms of generation are much cheaper. Sign up here. More carbon-intensive coal-fired generation typically accounts for about 75% of India's electricity mix. The country is trying to increase its use of renewable power. Chairman of the Central Electricity Authority Ghanshyam Prasad, speaking at the Indo-American Chamber of Commerce energy summit in New Delhi on Tuesday, did not give details on how gas-fired generation would be supported. However, he said the government had in May drawn up a 100-day plan to ensure gas-based plants could be used if needed to meet demand, and that it provided for a contract structure, including support for startup costs and gas price fluctuations. The government also reduced the capacity of gas plants connected to the grid to 20 gigawatts from 25 gigawatts after some were found unfit to be operated following years of being idled because of high gas prices. Of this capacity, Prasad said India deployed around 13-14 GW last year during the high-demand period. This year's heavy rains and reduced demand for cooling, as well as economic slowdown, have curbed power demand, meaning India's need for gas generation was limited. Power demand at its peak was 242 GW compared to predicted 270 GW. https://www.reuters.com/sustainability/boards-policy-regulation/india-explores-using-costly-gas-fired-power-meet-peak-demand-2025-08-26/
