Latest news with #Nantong
Reuters
5 days ago
- Business
- Reuters
China's petrochemical sector set to expand even as losses deepen
NANTONG/BEIJING, Aug 14 (Reuters) - A key segment of China's petrochemical sector is set to expand by almost half between now and 2028 even as growing competition in the broader refining sector slashes profits. Capacity to make ethylene, a key ingredient in plastics, will rise by 40 million metric tons between 2025 and 2028, taking total capacity to 100 million tons, Li Suoshan, an executive at a chemical logistics company owned by Sinopec, said on Thursday at a conference in China's Jiangsu province. Demand growth for traditional petrochemicals is set to slow over the next five years with margins weak in 2025 and profits likely to reduce further, he added. Many refiners are piling into petrochemical products as China's overbuilt refining sector faces a squeeze on profits from a weak economy and the rapid electrification of vehicles saps fuel demand, but they are also driving down petrochemical prices. Losses across refining and petrochemicals increased by 8.3% in the first half compared to a year earlier, said Fu Xiangsheng, vice chairman of the China Petroleum and Chemical Industry Federation, at the same conference. The sectors are both facing "involution," a popular reference in China to brutal competition that destroys profits, he added. China has stepped up its rhetoric against what it calls "disorderly low-price competition" and, in the case of polysilicon, a building block for solar panels, the sector has already proposed plans to cut capacity. But how and what capacity to cut is a thorny question in China where local governments are often stakeholders in major projects. Fu said it was not appropriate to use blanket rules related to size, utilisation or profitability to decide which refineries to shut and instead said decisions should be a combination of state policy and market forces. Petrochemical prices should ultimately rise as China tackles "involution," he said, although he did not provide a timeframe. "Petrochemical industry associations are at the stage of conducting surveys and seeking feedback," said Yang Lin, principal petrochemical analyst at Guosen Securities. "Areas such as refining and ethylene may see some moves," he added in reference to policies to address overcapacity.
Yahoo
04-08-2025
- Business
- Yahoo
Navigator Holdings (NVGS) Announced a New Partnership with Amon Maritime
Navigator Holdings Ltd. (NYSE:NVGS) is one of the . On July 17, Navigator Holdings Ltd. (NYSE:NVGS) announced its new partnership with Amon Maritime. The joint venture between the two companies is called Navigator Amon Shipping AS. Navigator Holdings Ltd. (NYSE:NVGS) owns 80% of this new joint venture, whereas Amon Maritime owns 20%. The partnership plans to build two new ships in Norway, which will use ammonia as fuel and can also carry liquefied petroleum gas. Each ship will have a capacity of 51,530 cubic meters and will be constructed by Nantong CIMC Sinopacific Offshore & Engineering Co., Ltd, costing around $84 million each. The ships are expected to be delivered in June and October of 2028. A modern seaborne tanker off the coast of a major metropolitan city, transporting liquefied petroleum gas. Both the new ships have received significant support from the Norwegian government's agency, Enova, as it has granted NOK 90 million for each ship; however, the management noted that the rest of the funding will come from bank loans. The companies plan to lease these ships to a major industry player on a 5-year contract. Navigator Holdings Ltd. (NYSE:NVGS) already owns and operates a large fleet of specialized ships that carry liquefied gases like petrochemical gases, LPG, and ammonia. While we acknowledge the potential of NVGS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-07-2025
- Business
- Yahoo
Navigator Gas, Amon Maritime form JV for ammonia-fuelled gas carriers
Navigator Gas, an operator of liquefied gas carriers, has announced a joint venture (JV) with Amon Maritime named Navigator Amon Shipping to construct two new ammonia-fuelled gas carriers. Navigator will acquire an 80% stake in the JV, with Amon Maritime holding the remaining 20%, subject to investment terms and conditions. The JV aims to build two 51,530m3 capacity vessels, also capable of carrying liquefied petroleum gas. Contracts are already in place with Nantong CIMC Sinopacific Offshore & Engineering for construction at an average cost of $84m per vessel. Navigator CEO Mads Peter Zacho said: 'Expanding our fleet with two modern ammonia carriers capable of using clean ammonia as a fuel, operating in a long-term time charter, is a strategic enabler in meeting the growing demand for a sustainable fuel source in a net-zero economy. 'These modern vessels will be equipped with newly developed technologies that comply with present and future environmental regulations and will thereby deliver great value to both our customers and our shareholders.' Delivery of the vessels is scheduled for June and October 2028. Each vessel project has secured a Nkr90m (approximately $9m) investment grant from Enova, a Norwegian government agency. Most of the purchase price for the vessels is expected to be financed through commercial bank finance, complemented by capital contributions from both Navigator and Amon Maritime. Navigator plans to finance its share of the capital contributions from available cash resources, expecting these investments to be accretive to the company's earnings. Upon delivery, and subject to customary conditions, each vessel will be operated by the JV under long-term time charters with a blue-chip industry leader for five years from delivery. Amon Maritime CEO André Risholm said: 'Amon Maritime was founded with a vision to lead the green shift in shipping by pioneering the use of ammonia fuel. 'We are proud to realise this vision alongside our forward-looking and competent partners in Navigator Gas, serving ammonia-powered transportation services to market leaders. We are very satisfied to expand and strengthen our relationship with Navigator Gas further by constructing and operating these vessels.' "Navigator Gas, Amon Maritime form JV for ammonia-fuelled gas carriers" was originally created and published by Ship 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. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
