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Sinopec Joins Zhejiang Energy Group to Build LNG Terminal
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In an effort to capitalize on the Beijing government’s drive to replace coal with cleaner gas, China Petroleum and Chemical Corporation , also known as Sinopec, has proposed to build a 3-million ton per year liquefied natural gas (LNG) terminal in east China.
The company has collaborated with a provincial government-backed entity, Zhejiang Energy Group Co Ltd. The first phase of the project is expected to be commissioned by 2021 end.
The project, to be constructed in Wenzhou of Zhejiang province, comprises four tanks with a storage capacity of 200,000 cubic meters of LNG each, a berth to dock tankers of 30,000-266,000 cubic meters and a 26-kilometer (16-mile) pipeline.
A new entity named Zhejiang Zheneng Wenzhou LNG Co Ltd was launched on Aug 22, 2018, for this project. The partners in the company are Zhejiang group, Sinopec and a local investment firm, holding 51%, 41% and 8%, respectively.
The project represents Sinopec’s fourth LNG receiving terminal, subsequent to similar-sized facilities built in Qingdao, Beihai and Tianjin. Sinopec is swiftly growing its LNG receiving capacity.
The company has made major progress in identifying attractive and economically viable oil and natural gas reserves. Huge scale of prospective gas reserves were discovered in a number of fields like Shunbei area in Xinjiang Tarim Basin and the Sichuan Basin. Fresh natural gas reserves were identified in the Hangjinqi of Nei Mongol, Dongpo of west Sichuan and Weirong block in southwestern Sichuan province. These discoveries are expected to support large-scale oil and gas production.
About Zhejiang Energy Group
Established in 2001, Zhejiang Energy Group is involved in the production of thermal power and pipeline gas distribution. The group provides 61 million tons of coal on an annual basis, which is equivalent to about 50% of Zhejiang’s consumption. It also distributes 8.7 billion cubic meters of natural gas annually, which corresponds to 83% of the province’s gas consumption.
Price Performance
Sinopec has outperformed the industry in the past year. The company’s shares have returned 29.6% compared with the industry's 27.8% rally.
Petrobras is the largest integrated energy firm in Brazil and one of the major players in Latin America. It pulled off an average positive earnings surprise of 10.4% in the last four quarters.
Helix Energy offers specialty services to the offshore energy industry. The company delivered an average positive earnings surprise of 66.7% in the trailing four quarters.
TC Pipelines purchases, owns and actively participates in the management of U.S.-based natural gas pipelines and related assets. The company delivered an average positive earnings surprise of 3.7% in the last four quarters.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Sinopec Joins Zhejiang Energy Group to Build LNG Terminal
In an effort to capitalize on the Beijing government’s drive to replace coal with cleaner gas, China Petroleum and Chemical Corporation , also known as Sinopec, has proposed to build a 3-million ton per year liquefied natural gas (LNG) terminal in east China.
The company has collaborated with a provincial government-backed entity, Zhejiang Energy Group Co Ltd. The first phase of the project is expected to be commissioned by 2021 end.
The project, to be constructed in Wenzhou of Zhejiang province, comprises four tanks with a storage capacity of 200,000 cubic meters of LNG each, a berth to dock tankers of 30,000-266,000 cubic meters and a 26-kilometer (16-mile) pipeline.
A new entity named Zhejiang Zheneng Wenzhou LNG Co Ltd was launched on Aug 22, 2018, for this project. The partners in the company are Zhejiang group, Sinopec and a local investment firm, holding 51%, 41% and 8%, respectively.
The project represents Sinopec’s fourth LNG receiving terminal, subsequent to similar-sized facilities built in Qingdao, Beihai and Tianjin. Sinopec is swiftly growing its LNG receiving capacity.
The company has made major progress in identifying attractive and economically viable oil and natural gas reserves. Huge scale of prospective gas reserves were discovered in a number of fields like Shunbei area in Xinjiang Tarim Basin and the Sichuan Basin. Fresh natural gas reserves were identified in the Hangjinqi of Nei Mongol, Dongpo of west Sichuan and Weirong block in southwestern Sichuan province. These discoveries are expected to support large-scale oil and gas production.
About Zhejiang Energy Group
Established in 2001, Zhejiang Energy Group is involved in the production of thermal power and pipeline gas distribution. The group provides 61 million tons of coal on an annual basis, which is equivalent to about 50% of Zhejiang’s consumption. It also distributes 8.7 billion cubic meters of natural gas annually, which corresponds to 83% of the province’s gas consumption.
Price Performance
Sinopec has outperformed the industry in the past year. The company’s shares have returned 29.6% compared with the industry's 27.8% rally.
Zacks Rank & Stocks to Consider
Sinopec currently carries a Zacks Rank #3 (Hold).
A few better-ranked players in the same sector are Petroleo Brasileiro S.A. (PBR - Free Report) , or Petrobras SA, Helix Energy Solutions Group, Inc (HLX - Free Report) and TC Pipelines, LP . All these stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Petrobras is the largest integrated energy firm in Brazil and one of the major players in Latin America. It pulled off an average positive earnings surprise of 10.4% in the last four quarters.
Helix Energy offers specialty services to the offshore energy industry. The company delivered an average positive earnings surprise of 66.7% in the trailing four quarters.
TC Pipelines purchases, owns and actively participates in the management of U.S.-based natural gas pipelines and related assets. The company delivered an average positive earnings surprise of 3.7% in the last four quarters.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>