Securing China's Energy Future

crobato

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Japan says 'cannot accept' Chinese gas development
TOKYO, Jan 5 (AFP) Jan 05, 2009
Japan said Monday it "cannot accept" China's development of a gas field near a disputed part of the East China Sea after Beijing insisted it was acting within its own waters.

Asia's two largest economies struck a deal in June last year to end a lingering spat over four Chinese undersea gas fields which, Japan said, may extend into its exclusive economic zone.

But Japan has complained about China's development of the nearby Tianwaitian gas field, which Tokyo contends should be untouched until ongoing talks settle its status.

"The area should be under negotiations. The Japanese government expresses its regret that China is unilaterally developing the field," Chief Cabinet Secretary Takeo Kawamura told reporters.

"Japan cannot accept China's unilateral development," said Kawamura, the government's spokesman.

Under last year's deal, Japan agreed to invest in one of the four fields and jointly develop an area near another.

They agreed to continue talks on the remaining ones, which China wanted to develop on its own, by freezing further development. The Tianwaitian field was not part of the deal.

"Our understanding is that the status of the ones outside of the political agreement is blank. Therefore the status quo is the way it should be," Kawamura said.

"We are gathering information at this point. We must take appropriate actions if new steps are made," he added.

China however said Sunday the development is in "China's undisputed territorial waters."

"The gas field development activities of the Chinese side are being carried out within China's inherent sovereign rights," foreign ministry spokesman Qin Gang said in a statement on his ministry's website.

Japan and China are two of the world's biggest energy importers. They have been working since 2006 to repair relations, which have long been tense due in part to the legacy of Japanese imperialism.
 

Quickie

Colonel
Significant progress achieved in "coal-to-oils" process
+ - 15:11, January 08, 2009


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At 2:30 pm on December 31, 2008, the Shenhua demonstration project for the megatonnage direct liquefaction of coal went through the full production process and generated qualified target products such as naphtha and diesel.

The successful trial made China the only country in the world to have mastered the key technologies to realise this process, said Zhang Xiwu, chairman of the board of the Shenhua Group.

The development has deep significance in strengthening China's energy self-sufficiency, raising its overall economic strength and its continuation along the path of "clean energy with Chinese characteristics", Zhang added.

Techniques, technologies and catalysts applied in the core equipment of the Shenhua project all detain self-owned intellectual property rights.

The Shenhua Group has obtained patent licenses from the State Intellectual Property Office for its techniques and technologies on direct liquefaction of coal.

The technology also applied for patent protection in 13 countries including the US, Germany and Japan, and has already obtained patent licenses in countries such as Russia and Ukraine.

By People's Daily Online

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Schumacher

Senior Member
A big oil deal with Iran.

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Iran, China sign $1.76 bln contract to develop Iranian oil field

15/01/2009 11:34 TEHRAN, January 14 (RIA Novosti) - The National Iranian Oil Company and China National Petroleum Corporation (CNPC) signed on Wednesday a $1.76 billion contract on developing Iran's North Azadegan oil field, local media reported.

The North Azadegan oil field is located in the Iranian southwestern province of Khuzestan on the border with Iraq. The oil field has estimated oil reserves of 6 billion barrels, making it possible to produce an average of 75,000 barrels a day over the next 25 years, Iranian media said.

The contract signed in Tehran covers the first stage of the oil field development. The contract's overall price for the first and second stages expected to be implemented over a period of 12 to 17 years is likely to reach about $4 billion, the Iranian media said.

This is the second large deal Iran has signed with China in the oil sector in recent years. In December 2007, Iran's Petroleum Ministry and Chinese oil company Sinopec signed a $2 billion contract to develop the Yadavaran oil deposit, which holds 18.3 billion barrels in proven reserves.
 

bladerunner

Banned Idiot
Sometimes these big contracts are good for publicity but yrs out nothing has been done to implement it. Eg Whats the progress with the Russian promise to construct a pipeline to China instead of Japan for oil supplies from their eastern oilfields, or has work actually started on the Yadavaran field yet?
 

bladerunner

Banned Idiot
Can anybody correct me on this. "Did the PM of Canada once say that the oil from the tar sands in Alberta would not be made available to the Chinese.. I wonder where they would market it then if Obama rejects the product, because of environmental concerns
 

pla101prc

Senior Member
in this book that i read, which were written by Chinese strategists. they suggested that rather than competing with Japan for resources China should cooperate with Japan. since they are top advisers for Hu Jintao i guess the Chinese government is alreay working towards this direction...which explains the East China Sea deal. so now its up to the Japanese to respond, which will be in their best interest because once CHina takes Taiwan back and regain control of the South China Sea the Japanese are screwed anyways.
 

RedMercury

Junior Member
Ah geopolitics: smiles and rosy talk above the table, deft kicks under the table, all normal behavior.

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Energy War: NATO meddling in Sudan to block China

by Ali Cordoba


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, January 23, 2009
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- 2009-01-18

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The US is slowly shifting its military needs towards Africa and Sudan in particular. While the Barack Obama administration will force the UN to declare a no-fly zone over Darfur, the US forces in so called peacekeeping missions will establish their bases in Darfur or Kenya and other surrounding nations in order to keep Sudan under its umbrella.

The main objective of the mission in Darfur and the no-fly zone over the region will be to slowly strangulate Sudan's economy and render it impossible for the Chinese to exploit Sudan's oil.
The no-fly Zone will be enforced by NATO forces that will be under US command.

On January 14th, the U.S. Air Force has begun airlifting Rwandan peacekeeping equipment and supplies from Kigali to the Darfur Region of Sudan as part of the United Nations-Africa Union peacekeeping mission.

Rwanda has four battalions of peacekeepers in Darfur, totaling 2,566 personnel, with a goal of increasing the peacekeeping force to 3,200, Rutaremara said. The Rwandan peacekeepers are assigned to the hybrid United Nations-African Union mission in Darfur, known as UNAMID.


The decision to airlift the equipment was announced January 5 by President George W. Bush as part of the U.S. government's ongoing support international peacekeeping efforts in Darfur.

With the massive movement of NATO forces across the globe from Afghanistan to Sudan and Israel the world seems to be heading for a massive conflict between the Americans and its allies and the rest of the world which comprises of Russia, China and most of the Muslim state. Included in the rest of the world are the 'socialist' states in Southern America indeed. Venezuela and Bolivia are also the target of a possible 'energy' squeeze in the Southern American region in which NATO forces may altogether be involved soon.

Following the Ukraine declared war on Russian gas, which signalled the beginning of the 'energy' war against non-US friendly states, the NATO is shaping up its 'future' war strategies with clear goals. The control of all the canals and straights that are not under US/allied occupation.
The Straits of Malacca will once again become the prime target of the US administration and will be used as a bargaining tool by the Obama administration to woo into the NATO helm countries like Indonesia and Malaysia, which are opposed to US or foreign troops and naval patrol in their waters.

The US – thanks to Defense Secretary Gates visit to Indonesia in 2007 – has already set a foot along the Straits of Malacca with the installation of at least 7 military radars (given free of charge to the Indonesians apparently). The radars has the capacity to scan the entire Malaysian, Singaporean and Brunei nations not withstanding large areas of Indonesia altogether. This has been seen as a risk to the integrity of the nations mentioned by experts in the matter.
To enhance its presence in Sudan and the surrounding regions, the US and the NATO command will wage the old and overplayed card of the conflict in Darfur. The US media is already claiming that the Obama administration will have to deal with the problem in Sudan where they say an estimated 2.5 million people have been displaced and 300,000 died, citing UN figures.

Since 2004, the United States has spent more than $15 million to airlift 11,400 peacekeepers and their equipment to and from Darfur and has provided more than $100 million to train and equip those forces, according to a White House fact sheet. Much of this support is coordinated through the U.S. Department of State.

From now on, the US will also count on the AFRICOM or the African Military Command set up at the Pentagon to deliver blows to the nations that are giving leeway to the Chinese and Russian nations. China has a long term deal with Sudan for the exploitation of its oil reserves. The China Oil Corporation was partners with Malaysia's National oil corporation Petronas in some of the operations over Sudan.

Sudan represents the most viable cheap oil alternative for the Chinese regime while the Russians are now in military partnership – short of an alliance so far – with Tripoli where the Russians will be building an extended and sophisticated Naval base for its warships. Sources indicate that the military agreement between Libya and Russia will eventually lead to an 'oil' and 'gas' deal between Tripoli and Moscow, a deal that may cause ire of Washington, Italy and the UK.

Strangulating Sudan over Darfur will not be of good news to Libya which is bordering Chad. Chad and Sudan were battling each other until last years peace deal 'brokered' by the Senegal during the OIC summit that took place in Dakar in March. The French are to play a major role in the future US blockade of Darfur, which will help strangulate the Sudanese regime and cutoff China's access to the cheap and easy oil finds (for the Chinese) in Sudan.

The domino effect of this strangulation strategy will lead to Libya being under pressure with a military build up in its backyard and one of its long time adversary Chad ending up being occupied by both French and US/NATO forces. Chad and Libya had a long conflict experience over a stretch of the desert land bordering the two nations. The area is rich in oil and was coveted by the French in the 1980's and surely the Americans of the Ronald Reagan era.

The heavy NATO presence in Chad will definitely re-ignite the conflict between Chad and Sudan while light armed Somali Islamic fighters may want to hit the NATO on its vulnerable flanks in the vast African desert land in order to disrupt its operations to strangulate Sudan. There is little wonder which states would end up supporting the brave Somali fighters into enlarging the conflict in the region. The aim of such an escalation will be to achieve two goals: An arms race in the region that will allow Libya and Sudan to acquire additional weapons. This will also allow the Islamic Courts and the militias in Somalia to be re-equipped. And to destabilize Kenya and the southern Sudan region further in order to give the NATO a real military headache that will probably force it to miss its target of 'killing off' the Sudanese regime.

While it is obvious that the recent US 'surge' in peacekeeping efforts (see attempts at conquest of African states instead), the US want to consolidate its US. Africa Command that was formally activated on Oct. 1, 2008. This will remove the US European Command, which had responsibility for Africa prior to the activation of U.S. Africa Command, from duty since the EU command will have to concentrate on Ukraine and on how to push further the idea of strangulating and suffocating Russia's energy business.

A statement by a US military spokesman on the US Africa Command says the following: "The U.S. military has been working with African nations for years," said Vince Crawley, a spokesman for U.S. Africa Command. "The command wants to add value to what the U.S. military has been doing; that is helping African partners develop their security capabilities in order to promote security and stability throughout the continent."

Clearly, the NATO will be brought in to support the US in its 'conquest' mission and its global strategy of controlling the 'energy' reserves across the African continent.

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crobato

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China's crude oil output hit 190 mln tons in 2008: industry association
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2009-01-30 00:11:21 Print

BEIJING, Jan. 29 (Xinhua) -- China's crude oil output rose 2.3 percent year-on-year, the highest growth in three years, to 190 million tons last year, the China Petroleum and Chemical Association said Thursday.

China imported 179 million tons of crude oil in 2008, an increase of 9.6 percent from the previous year.

The imports accounted for 48 percent of the total crude oil demand in the world's second-largest energy user, 1.8 percentage points higher than that in the previous year.

When considering the imports of oil products, China relied on imports for nearly 51 percent of its oil demand, said Zhu Fang, deputy director of the association's information and market department.

China's consumption of oil products rose 11.9 percent to 215 million tons last year. The growth rate was 5 percentage points higher than that in 2007.

Zhu said the oil product demand will grow at a slower pace this year.

The government measures to boost domestic demand and lower oil prices will spur fuel consumption, but the growth will be limited by the economic slowdown, he added.

PetroChina has forecasted China's crude oil consumption will rise to 379 million tons this year. The demand for gasoline, diesel, and kerosene may climb to 64.4 million tons, 144 million tons and 13.1 million tons, respectively, said the oil giant.

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Two major oilfields in NW China aims output growth
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2009-01-30 12:33:03 Print

URUMQI, Jan. 30 (Xinhua) -- Developers of two key oilfields in Xinjiang Uygur Autonomous Region have pledged to further tap oil and gas reserves and boost their production capacity in the coming years.

Karamay Oilfield is expected to realize an annual crude oil output of 16 million tonnes and 10 billion cubic meters of natural gas by 2015, according to Chen Xinfa, general manager of Xinjiang Oilfield Company, a subsidiary of China National Petroleum Corporation (CNPC).

The oilfield, reporting 28 consecutive years of increase in crude oil output, produced 12.2 million tonnes of oil in 2008. Natural gas output hit 3.42 billion cubic meters last year, 520 million cubic meters more than that of 2007.

Chen said its company will further explore oil and gas reserves in the area and adjust and improve production methods to realize the goal.

Another key oilfield of Tahe, being developed by Sinopec, is expected to produce more than 10 million tonnes of crude oil annually by next year, a huge jump from last year's output of 6 million tonnes.

Sinopec plans to invest 9.8 billion yuan (1.43 billion U.S. dollars) in the oilfield this year to produce 6.59 million tonnes of crude oil and 1.21 billion cubic meters of natural gas.

According to a medium and long-term development plan, Sinopec will strive to increase the oilfield's combined oil and gas output capacity to 15 million tonnes annually by 2015. By 2020, the figure is expected to increase to between 20 million and 25 million tonnes.

Both oilfields are located in Xinjiang's Junggar Basin, which stores oil and gas reserves totaling 10.7 billion tonnes, only 21percent of which has been ascertained by now.
 

Schumacher

Senior Member
Hope this one goes thru. Another example of seizing opportunities in the low resource prices & credit market turmoil environment to pick up some nice strategic assets.

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Feb 2, 2009
Rio Tinto confirms stake talks
SYDNEY - GLOBAL miner Rio Tinto confirmed on Monday that it has held talks with Chinese aluminium giant Chinalco over the sale of stakes in some of its operations.

The confirmation of discussions with the state-owned Chinalco, which is already a shareholder, follows media speculation of a deal as Rio Tinto seeks to reduce its huge debts.

'Rio Tinto confirms that it has held discussions with Chinalco regarding Chinalco acquiring minority interests in various operating businesses of the Rio Tinto group and also investing in convertible instruments,' Rio said in a statement.

'There can be no certainty that a transaction will ultimately take place and any possible transaction would be conditional upon approval by the shareholders of Rio Tinto and all necessary government and regulatory authorities.'

Rio is thought to be close to selling Chinalco an US$8.0 billion (S$12.1 billion) stake in key assets that could give the company a foothold in Australia's iron ore, coal and aluminium reserves, The Australian newspaper said Monday.

Rio is reportedly looking at a US$15 billion combination of asset sales, convertible notes and share issues that would increase Chinalco's stake in the world's third largest miner, the newspaper said.

Chinalco, acting with US-based Alcoa Inc, bought 12 per cent of Rio Tinto's London-listed shares for US$14 billion last year. The transaction gave Chinalco and Alcoa an overall nine per cent stake in the group, which is also listed in Australia.

Rio Tinto plans to pay down US$10 billion of its US$38.9 billion debt and has said it is considering a range of options, including a possible equity issue. -- AFP
 

crobato

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China eyes massive hike in atomic energy target: state media
BEIJING, Feb 4 (AFP) Feb 04, 2009
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China plans to nearly double its target for nuclear energy by 2020, state media said Wednesday, a move likely to reaffirm the nation's position as a prime market for the global atomic industry.

The new objective is for nuclear power plants to reach a capacity of 70 gigawatts in 11 years, the China Daily reported, enough to power 70 cities the size of San Francisco.

The objective, if approved by the State Council or Cabinet, will be up from a previously announced target of 40 gigawatts for 2020.

China currently has a combined capacity of nine gigawatts at 11 nuclear reactors.

The China Daily quoted the state-controlled newspaper 21st Century Business Herald, which in turn had its information from the National Energy Administration.

"We have the ability to raise our nuclear power capacity to at least 60 gigawatts," said Fu Manchang, secretary general of the Chinese Nuclear Society, a group of mainly scientists. "Seventy gigawatts is not unthinkable."

However, it will be necessary if China is to meet its objective of raising the share of nuclear power in the overall energy mix to five percent from slightly more than one percent presently, the paper said.

China is banking on nuclear power as a cleaner alternative to coal, which currently covers about two thirds of its energy demand.

It has also emerged as an attractive alternative to oil, especially after global crude prices reached record highs last year.

China's plans have given new hope to the global nuclear industry, represented by firms such as Areva of France and US-based Westinghouse, while offering a market for uranium suppliers such as Anglo-Australian BHP Billiton.
 
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