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Posts tagged to gas

China Three Gorges takeover of EDP: Deal would leave Portugal dangerously exposed to China

MarketLine

The $10.9bn bid from China Three Gorges, the largest clean energy company in China, was rejected by EDP but the takeover remains very much the most likely outcome – only at present the shareholders would prefer to extract a larger sum of money for a prized asset. Current trading conditions are ideal for China Three Gorges. A relatively poor government (although now at least managing a growing economy and rising employment) in need of foreign investment makes EDP ripe for a takeover bid. Yet to secure this the government will… Read more

Saudi Arabia and Russia oil alliance: Desert kingdom requires Russian co-operation to solve economic problems

MarketLine

Petrostates have historically been wasteful in regard to spending the wealth generated by large-scale fossil fuel extraction. The desert kingdom of Saudi Arabia is no different, spending vast sums on subsidizing fuel and extensive social programs; most of the workforce is employed by the state, funded by oil. Now the country is undergoing significant reform to correct economic imbalances and diversify the economy. The Aramco IPO is driving Saudi Arabian policy, which in turn is likely to be directing the nature of OPEC policy. Oil futures for March 2019 are… Read more

Shinzo Abe reelected as tensions in Asia rise

MarketLine

Japan has in the past decade been hit by two major financial crises. The first one was the global financial crisis of 2008 and the second one came about following the Fukushima nuclear power plant disaster. The latter resulted in a nuclear meltdown and forced the Japanese government to immediately cease operations at all other nuclear power plants in the country, which together generated almost a third of all electricity consumed in Japan. As Japan increasingly relied on fossil fuel powered electricity in the aftermath of Fukushima, increased imports of… Read more

Siemens gas turbines taken to Crimea

MarketLine

Under pressure from the German government to extirpate the company from any harmful events, Siemens has reacted swiftly to eradicate the possibility of further problems emerging. All operations in Russia are now under review and links with the offending company which is accused of illegally moving the gas turbines to Crimea have been irrevocably damaged. For an influential and large company such as Siemens to take such stern action will likely mark a major change in relations international business has with Russia. Suddenly trust has been eroded and further sanctions… Read more

Shell to Acquire BG

MarketLine

Royal Dutch Shell is to buy BG Group in one of the largest energy company acquisitions seen in a decade. The deal is worth £47 billion ($77 billion), representing a 50% premium on BG’s share price as of 7 April 2015, and the combined entity will be the largest company in the FTSE 100. Shell is a vertically-integrated company, whose operations range from exploration and production of oil and natural gas, refining, petrochemical production, and marketing of fuels and other products. BG Group is more focused on upstream activities. In… Read more