Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Stock Exchange of Hong Kong  >  China Gas Holdings Ltd    0384   BMG2109G1033

SummaryChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

Delfin taps China for US floating LNG plant, but final investment decision 'challenging' -CEO

share with twitter share with LinkedIn share with facebook
share via e-mail
0
11/09/2017 | 11:04am CET

Delfin Midstream, developing the first floating facility to export U.S. natural gas, has sealed a preliminary 15-year sales deal with city gas distributor China Gas Holdings, Delfin founder and Chief Executive Officer Frederick Jones said.

But industry veteran Jones told Reuters in an interview that Delfin is also tapping unnamed Chinese banks to fund its ambitious $8 billion as the current global supply overhang in liquefied natural gas (LNG), with bumper exports also expected from Australia and Qatar, makes Delfin's target of a final investment decision (FID) in 2018 challenging.

"We'd like to make an FID next year, but we have to be realistic," said Jones, a pioneer of spot crude oil trade in the 1970s.

"The numbers don't add up," said Jones, in Beijing as part of a trade delegation accompanying U.S. President Donald Trump on his visit to China. "If we could see crude (oil) stay in the $55-60 range for a sustainable period of time, and start creeping to the higher 60s, then LNG will find its level adequate for the whole industry."

A rapidly growing spot market worldwide for LNG, allied with global oversupply of the super-chilled fuel for at least the next few years, is transforming an energy business that traditionally counts on 20-30 year purchase agreements to bankroll projects.

Jones' comments came as Delfin announced the signing of a memorandum of understanding to supply 3 million tonnes a year of LNG from 2021 to China Gas Holdings Co Ltd (>> China Gas Holdings Ltd), one of China's most active city gas distributors, now operating 140,000 kilometers of pipelines, according to the company's president.

"It's a very significant challenge to secure long-term buyers given the rise of spot market and oversupply," said Jones, a founder-shareholder of legendary trading business Marc Rich & Co.

"We're open to either or both types of investment...banks for debt and some strategic investors who want LNG partially under their control," said Jones. "We've seen a lot of interest from Chinese banks to finance shipping."

Delfin said in June it would jointly develop the Louisiana project with Golar (>> Golar LNG Limited (USA)), a provider of floating FLN technology. Jones said Delfin will draw on Golar's experience in tapping Chinese banks for loans, without identifying institutions by name.

Delfin aims to start sending gas in 2021 using its first vessel located 50 miles off the coast of Cameron Parish, Louisiana, with eventual supplies reaching 13 million tonnes a year from four liquefaction vessels. Jones said Delfin will look for an Asian shipyard, possibly in Singapore, South Korea or China, to build four vessels each costing about $2 billion.

"Building an LNG vessel in a controlled environment, an Asian shipyard, is going to result in very good economics," said Jones.

That shipyard could become a stakeholder in the vessels, Jones said.

Canada's Enbridge (>> Enbridge Inc) holds about a 5 percent stake in the basic company, excluding vessels, after Delfin bought an existing gas facility, including onshore and subsea pipelines, from it for a fraction of what a new pipeline would cost, said Jones.

Meanwhile Delfin also signed on Wednesday a memorandum of understanding with Chongqing Oil and Gas Exchange to help develop a trading platform to the connect domestic Chinese market with international markets, emulating the established benchmark Henry Hub in the states.

Chongqing, in western China next to the country's largest natural gas province of Sichuan, operates an extensive gas grid.

(Reporting by Chen Aizhu; Editing by Kenneth Maxwell)

By Chen Aizhu

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on CHINA GAS HOLDINGS LTD
11/09 China-U.S. commercial deals signed during Trump's China visit
11/09 Delfin taps China for US floating LNG plant, but final investment decision 'c..
09/20 CHINA GAS : Voluntary announcement acceleration of natural gas investment deploy..
08/30 CHINA GAS : Financial information of zhongran investment limited for the six mon..
08/21 CHINA GAS : VOLUNTARY ANNOUNCEMENT (i) ENTERING INTO STRATEGIC COOPERATION FRAME..
08/14 CHINA GAS : Poll results of annual general meeting held on 10 august 2017
08/14 CHINA GAS HOLDINGS LTD : ex-dividend day for final dividend
07/27 CHINA GAS : Voluntary announcement - proposed issuance of 2017 first medium-term..
07/25 CHINA GAS : Voluntary announcement - entering into strategic cooperation agreeme..
07/25 CHINA GAS : honored in “2017 All-Asia (ex-Japan) Executive Team Ranking&rd..
More news
Financials ( HKD)
Sales 2018 41 168 M
EBIT 2018 7 708 M
Net income 2018 5 853 M
Debt 2018 17 354 M
Yield 2018 1,55%
P/E ratio 2018 18,90
P/E ratio 2019 15,86
EV / Sales 2018 3,09x
EV / Sales 2019 2,57x
Capitalization 110 B
Chart CHINA GAS HOLDINGS LTD
Duration : Period :
China Gas Holdings Ltd Technical Analysis Chart | 0384 | BMG2109G1033 | 4-Traders
Technical analysis trends CHINA GAS HOLDINGS LTD
Short TermMid-TermLong Term
TrendsBearishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 23
Average target price 23,6  HKD
Spread / Average Target 6,5%
EPS Revisions
Managers
NameTitle
Ming Hui Liu Executive Chairman, President & Managing Director
Yong Huang Executive President & Executive Director
Si Zhou Chairman
Chang Gui Duan Chief Scientist
Wei Wei Zhu Executive Director & Vice President
Sector and Competitors
1st jan.Capitalization (M$)
CHINA GAS HOLDINGS LTD109.36%14 093
GAS NATURAL FENOSA0.28%21 185
GAIL (INDIA) LIMITED37.46%11 570
TOKYO GAS CO LTD394.80%10 700
ATMOS ENERGY CORPORATION20.47%9 479
INFRAESTRUCTURA ENERGETICA NOVA SA DE CV12.95%8 379