MOSCOW (MRC) -- Sempra Energy said on Wednesday it would buy the remaining stake in a Mexican unit in a deal valued at USD6.13 billion as it eyes new investments in renewables and energy storage amid growing global demand for cleaner fuels, said Reuters.
The company currently owns 66.43% of Infraestructura Energetica Nova SAB de CV (IEnova), according to Refinitiv Eikon data, and its all-share offer for the rest implies a 15.2% premium to the stock's closing price on the Mexican exchange.
The deal comes shortly after the Mexican government unveiled a second package of 29 infrastructure investments worth some 228 billion pesos (USD11.36 billion), aimed at lifting the nation's ailing economy.
The package included Costa Azul, a USD2 billion LNG export plant being built by a Sempra unit in the country's Baja California area. The proposed plant is one of the biggest privately funded energy projects in Mexico and is the only LNG export project to reach a final investment decision this year.
Oil and gas companies around the world have pushed back decisions on new LNG terminals this year after the coronavirus pandemic hammered energy demand and prices, ending a long run of rising LNG investments as Asian countries tried to meet their rising energy demand and diversify fuel sources.
Sempra shares will trade on the Mexican stock exchange following the deal, and the company will combine IEnova with its North American liquefied natural gas export infrastructure unit Sempra LNG, it said. The company said the new unit, Sempra Infrastructure Partners, would focus on the development and construction of North American LNG export and natural gas infrastructure alongside renewable energy generation.
We remind that PetroChina has nearly doubled the amount of Russian crude being processed at its refinery in Dalian, the company's biggest, since January 2018, as a new supply agreement had come into effect. The Dalian Petrochemical Corp, located in the northeast port city of Dalian, was expected to process 13 million tonnes, or 260,000 bpd of Russian pipeline crude in 2018, up by about 85 to 90 percent from the previous year's level. Dalian has the capacity to process about 410,000 bpd of crude. The increase follows an agreement worked out between the Russian and Chinese governments under which Russia's top oil producer Rosneft was to supply 30 million tonnes of ESPO Blend crude to PetroChina in 2018, or about 600,000 bpd. That would have represented an increase of 50 percent over 2017 volumes.
Ethylene and propylene are feedstocks for producing PE and polypropylene (PP).
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.
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