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Sinopec Unveils Ambitious Shale Gas Plan
Sinopec Corp (NYSE: SNP, SHA: 600028, HKG: 0386) said it plans to produce two billion m3 of shale gas annually by 2015. The amount will account for one-third of the output forecast by the Ministry of Industry and Information Technology's five-year plan for the industry. Sinopec said it will invest ¥1 billion in the development of nonconventional oil and gas resources this year, up from last year's ¥600 million. France's Total SA (NYSE: TOT) said Sunday that it had reached a preliminary agreement with Sinopec on developing shale gas in the country. China has 134 trillion m3 of shale gas in geological reserves, 25 trillion m3 of which are recoverable, according to China's National Energy Administration.
Shell Clinches Shale Gas Deal with CNPC
Royal Dutch Shell PLC (NYSE: RDSA) signed China's first shale gas production sharing contract as the country turns to more nonconventional resources, Bloomberg reported. Shell and CNPC, the state-controlled parent of PetroChina Co (NYSE: PTR, SHA: 601857, HKG: 0857), agreed to explore, develop and produce shale gas in the Fushun-Yongchuan block in the 3,500km2 Sichuan Basin, London-based Shell said. China may have 50% more shale gas reserves than the US, which is currently the world's largest shale gas producer, according the US Energy Information Administration.
Pricier Coal Drags Down Huaneng Power Earnings
Huaneng Power International Inc (NYSE: HNP, SHA: 600011, HKG: 0902), China's largest listed electricity producer, said its net profit tumbled 65% to ¥1.2 billion in 2011 as rising coal prices pared the increase in demand for electricity. Its revenue was up 28% to ¥133.4 billion last year.
Blizzard to Extend NetEase's WoW China License
Activision Blizzard Inc (NASDAQ: ATVI) and NetEase.com Inc (NASDAQ: NTES) said they will continue their cooperation in Blizzard Entertainment's World of Warcraft in mainland China. The new license will continue for an additional three years following the expiration of the current license that NetEase obtained in 2009.
Oilfield Services Net Profit Drops 2.2%
China Oilfield Services Ltd (SHA: 601808, HKG: 2883) posted ¥18.91 billion in revenues and ¥4.04 billion in net profits for 2011, up 4.7% and down 2.2% respectively from the year before. The increase in revenue was credited to higher efficiency from upgraded equipment and a recovering market; and the decrease in earnings was a result of higher maintenance, labor and raw materials costs, the company said.
CSR Wins ¥3.5b Contracts
CSR Corp (SHA: 601766, HKG: 1766), one of China's top two railway equipment manufacturers, said it recently signed ¥3.48 billion worth of deals, which was equivalent to 5.4% of its revenue in 2010.
$1 = ¥6.31
@2011 China Economy @ The China Perspective.
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