Latest news with #ENNGroup
Business Times
08-07-2025
- Business
- Business Times
China shuns costly LNG imports even as summer power demand rises
[BEIJING] Sweltering temperatures are pushing up appetite for electricity in China, just not yet enough to revive the country's spot purchases of costly liquefied natural gas (LNG). Traders hoping for a recovery in spot LNG deals had been watching for a surge in summer demand along China's eastern seaboard. Scorching heat has indeed created those spikes, except that cheap coal, higher-than-usual inventories of power-station fuels and a continued increase in renewable capacity have filled the gap and limited the risk of seasonal blackouts. Ample supplies of piped natural gas, where prices are linked to oil, flagging under the weight of a supply glut, and sputtering industrial demand overall are also limiting the impact of a surge, the research arm of the ENN Group, one of China's leading importers, said in a note. China has already seen LNG imports falling steadily since the end of last year, as spot purchases became uneconomic for importers, denting the more optimistic consumption forecasts. Analysts at BloombergNEF estimate Chinese LNG imports at around 5.6 million tonnes in July, higher than last month but still lower year on year. 'We expect that China's LNG imports will remain weak in the second half of the year, amid subdued demand, higher piped gas imports and an uncertain macroeconomic outlook,' said Gergely Molnar, a gas analyst at the International Energy Agency. Russian piped deliveries to China are expected to increase by around 25 per cent in 2025, he added. Imports are expected to decline less steeply than in the first half of the year, though, as the supply picture improves and storage is refilled ahead of the winter, Molnar said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The growing frequency of extreme weather is making it tougher to predict the scale and duration of heat waves everywhere, and therefore the direct impact on power demand. High temperatures are coming earlier and can still occur late into the season. While China's summer temperatures have broken records, heavier-than-usual rains around the north, and the typhoon season should provide some relief to eastern cities, according to the China Meteorological Administration's latest forecast for July. The other catch for the LNG trade is that China continues to diversify its energy purchases. That means changes in flows away from suppliers perceived to be less reliable, Chinese customs data show US purchases in the first five months of 2025 dropped more than 80 per cent on the same period a year ago. Qatar ticked 5 per cent higher. But it also means developing other options. Beijing has recently built up a new cross-regional pipeline to increase imports from Central Asia. A connection to Russia's Far East gas project for 10 billion cubic metres per year of imports is expected to be completed by the end of 2025. BLOOMBERG
Yahoo
27-03-2025
- Business
- Yahoo
ENN Group to acquire ENN Energy, valued at $11.6bn
ENN Group is looking to take over the remaining stake in ENN Energy, valued at HK$90.50bn ($11.6bn), in a move to streamline operations within its natural gas business, reported Reuters. ENN Natural Gas, holding a 34.28% stake in clean energy company ENN Energy, has proposed buying the remaining shares for HK$59.48bn, valuing each share at HK$80, a 47.6% premium over the closing price on 17 March. The acquisition proposal comes as Beijing pushes for energy security, urging domestic companies to maintain production and increase natural gas output to reduce foreign dependency, the report said. Recently, China halted US liquefied natural gas (LNG) imports for 40 days, the longest pause in nearly two years, due to trade tensions. This suspension has led traders to reroute shipments to avoid tariffs, affecting the global LNG market. The gap in US LNG imports to China is the longest since June 2023, highlighting ongoing trade tensions initiated by the Trump administration, which threaten to decouple the world's largest LNG seller and buyer. China, the largest oil and gas importer, has been reducing seaborne gas imports, with LNG imports dropping to their lowest level since early 2020. This decline is attributed to weak demand and higher European prices redirecting cargoes. According to Kpler data, China imported 4.5 million tonnes of LNG in February, trailing Japan for the second consecutive month. In response to market conditions, some Chinese gas companies have resold spot cargoes abroad, particularly to Europe, taking advantage of more attractive prices. ENN Natural Gas, listed since 1994, operates in gas sales, infrastructure management, engineering construction and installation. In December 2011, ENN Energy and China Petroleum Corporation attempted to buy out China Gas, but the deal failed due to regulatory issues. "ENN Group to acquire ENN Energy, valued at $11.6bn" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
