June 4, 2015 [South China Morning Post] - Sinopec Kantons Holdings, an energy storage and logistics unit of oil and gas giant China Petroleum & Chemical (Sinopec), is seeking acquisition and cooperation opportunities in Africa, South America and the Mediterranean after having clinched several projects in Asia and the Middle East in the past few years.
“Asia is poised to become a global oil refining centre after refining capacity soared in the past decade,” Sinopec Kantons chairman Chen Bo told reporters on Thursday after the Hong Kong-listed firm’s annual shareholders meeting.
“More oil producing nations are looking at Asia’s oil consuming nations to sell their output, and are seeking storage and logistics cooperation opportunities.”
As the United States becomes more energy independent, oil and gas producers in Africa, the Middle East and Russia are increasingly looking to sell to the Asia Pacific, the only major growing market in the world, he said.
Paris-based International Energy Agency, which represents 29 oil consuming nations, has projected that Asia would account for almost two-thirds of global crude demand in the six years to 2020, and Asia’s incremental demand would equal that of the world in the 26 years to 2040.
Since 2012, Sinopec Kantons has acquired stakes in an oil storage project in Fujairah, United Arabic Emirates, oil terminals in Europe and has a joint venture in Indonesia to build a major oil storage and terminal facility.
Chen said they are in strategic locations in line with China’s “one belt, one road” overseas economic development strategy.
In the domestic market, Sinopec Kantons has China’s largest crude handling capacity in six terminals, with total throughput of 152 million tonnes last year.
Meanwhile, Chen said its 2.58 billion yuan acquisition of Sinopec’s natural gas pipeline linking Shaanxi and Shandong province is pending approval by the Ministry of Commerce.
Sinopec Kanton will also seek to acquire Sinopec’s imported liquefied natural gas (LNG) receiving terminal in Qingdao, Shandong, whose first phase capacity has come on stream last year, he added. Sinopec is also building LNG terminals in Beihai, Guangxi Zhuang autonomous region and in Tianjin.
Of 10 LNG-carrying vessels with combined capacity of 9.6 million cubic tonnes ordered by Sinopec Kanton, one has been completed and deployed, four are slated to be completed this year and three next year.
