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HONG KONG, Oct 4, 2012 - (ACN Newswire) - Amid global economic uncertainties, China is reexamining its energy security policy and diversification initiatives. International Energy Agency's June 2012 report specifically advices China to raise the share of natural gas in its energy mix. Indeed, the Chinese government has set an ambitious goal of increasing the share of natural gas in the energy mix from its current 4 percent to 10 percent by 2020.
Outside the traditional sphere of dominance by China's large SOEs with their more spread-out business structure, new generation of specialized industry leaders are quick to tackle the opportunities. In the past September, for instance, New Times Energy Corporation Limited (166.HK)(http://www.166hk.com/eng/global/home.html), an integrated natural resources company engaged in the acquisition, development and operation of oil & gas projects in Argentina, the USA and China, launched a strategic partnership deal with China Petroleum Pipeline Bureau ("CPP") for the supply of liquefied natural gas to vehicles and ships, the supply of gas for civilian use, the supply of gas for industrial use and the storage and logistic distribution of LNG.
In particular, New Times Energy would further negotiate with CPP on the establishment of a joint venture being engaged in the operation of LNG stations and the manufacturing of whole-set equipment. The success of the commercial gas development hinges on a smooth pipeline delivery, and a full-scale cooperation with CPP will enable the Group to establish a national gas supply network.
These new steps are in rhythm with New Times Energy's consistent strategies at home and abroad. New Times Energy earlier also announced an acquisition of 30 well bores and 2,300-acre tradable tribal land around Uinta Basin, one of the most promising oil and natural gas production basins in the United States. According to the Oil, Gas & Mining Division of Utah Department of Natural Resources, the oil production volume of the Duchense and Uinta Sections increased from 15.20 million barrels in 2008 to 19.00 million barrels in 2011.
In the past year, the two exploratory drilling areas New Times Energy acquired in the rich basin in northeastern Argentina across an area 15 times as large as Hong Kong commenced mass production. Acquisition of three other land parcels of the area is in progress. Transfer of several gas assets in Texas and Louisiana brought more than 1.5 times of profits and enabled New Times to obtain mature technology and experience in upstream operation. Thanks to new output contribution from numerous drilling wells in the resource-abundant basin of northeastern Argentina earlier on, New Times achieved remarkable 2012 interim results. The total revenue of the Group soared to approximately HK$127.17 million, an YOY increase of 801.07%. The gross profit increased by 227.83% to HK$1.508 million.
The CPP partnership will allow New Times Energy to forge ahead with its carefully-crafted and multi-layered China strategy. In the short-term, it is focused on rural gas supply projects which enjoy quick and high returns at a relatively low cost. The medium-term strategy begins with building and operating LNG fueling stations for heavy-duty trucks, inter-city and urban buses, which have relatively high profit margins. Its medium-to-long business will be gas supply projects for industrial zones, which aim at expanding sales at more competitive rates of profit. As these strategies dovetail well with China's new development thesis focused on higher living standards and quality energy supplies for an ever more demanding population, New Times Energy and its fellow specialized natural gas developers might be a good group to watch in China's New Energy Deal.
Topic: Press release summary
Source: New Times Energy Corporation Limited
Sectors: Daily Finance, Energy, Alternatives
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