China-bets-big-on-gas-technology

4 posts / 0 new
Last post
Ken C's picture
Ken C
Status: Platinum Member (Offline)
Joined: Feb 13 2009
Posts: 753
China-bets-big-on-gas-technology

From the Wall Street Journal

China Bets Big on Gas Technology
by Alison Tudor
Monday, February 14
, 2011

http://finance.yahoo.com/banking-budgeting/article/112117/china-bets-big-on-gas-technology?mod=bb-budgeting&sec=topStories&pos=8&asset=&ccode=

HONG KONG—Chinese companies are paying a heavy price to participate in North America's natural-gas boom in a bet on gaining vital new technology and access to a bountiful new source of energy.

 

It looks to me like the Chinese are just trying to get something tangible for their dollars while there are still people willing to take them. What better way to get rid of dollars than to buy an energy company.

 

Ken

 

SteveW's picture
SteveW
Status: Gold Member (Offline)
Joined: Jan 21 2010
Posts: 490
Re: China-bets-big-on-gas-technology
Ken C wrote:

 What better way to get rid of dollars than to buy an energy company.

Not exactly buying an energy company. Petro-China has acquired a 50% interest in Encana's Cutbank Ridge field for $5.4 bilion.

http://www.encana.com/operations/canada/cutbankridge/

Encana (ECA on NYSE) has a market cap near $23 billion. This partnership will allow a more rapid development of the Cutbank field during the current low NG prices in N. America.

The location in NE BC and Alberta makes the proposed LNG terminal in Kittimat a logical port for shipment to Asia. The NG pipeline to Kittimat is fully approved and entering construction. This is only one of several Canadian purchases the Chinese have made in recent years but they have always been careful to enter into joint operations and have not to my knowledge made any outright takeovers.

Ken C's picture
Ken C
Status: Platinum Member (Offline)
Joined: Feb 13 2009
Posts: 753
Re: China-bets-big-on-gas-technology

Steve,

 

The point was that they were exchanging dollars for an interest in a real asset.

SteveW's picture
SteveW
Status: Gold Member (Offline)
Joined: Jan 21 2010
Posts: 490
Re: China-bets-big-on-gas-technology
Ken C wrote:

Steve,

The point was that they were exchanging dollars for an interest in a real asset.

I know. Sorry if it wasn't obvious from my comment.

SteveW wrote:

This is only one of several Canadian purchases the Chinese have made in recent years but they have always been careful to enter into joint operations and have not to my knowledge made any outright takeovers.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments