Chinese companies agree to develop LNG in Alaska as Trump visits

CNBC

  • Three major Chinese companies agreed to develop Alaska’s liquefied natural gas sector
  • The deal comes during President Donald Trump’s state visit to Beijing

China’s top state oil major Sinopec, one of the country’s top banks and its sovereign wealth fund have agreed to help develop Alaska’sliquefied natural gas sector as part of President Donald Trump’s visit, the U.S. government said on Thursday.

Alaska Gasline Development, the State of Alaska, Sinopec, China Investment Corp and the Bank of China have signed an agreement to advance LNG in Alaska, the U.S. government said in an email.

A full moon helps illuminate an Alaskan pipeline under the faint glow of the Aurora Borealis on November 19, 2002 near Milne Point, Alaska.

Greg A. Syverson/Getty Images
A full moon helps illuminate an Alaskan pipeline under the faint glow of the Aurora Borealis on November 19, 2002 near Milne Point, Alaska.

The agreement will involve investment of up to $43 billion, create up to 12,000 U.S. jobs during construction, reduce the trade deficit between the United States and Asia by $10 billion a year, and give China clean energy, it said.

There were no other details. AGDC is building a gas treatment plant, an 800-mile (1,287 km) pipeline to south central Alaska for in-state use, and a liquefaction plant in Nikiski to produce up to 20 million tons of LNG per year for export.

China, the world’s third-largest gas buyer, is importing more LNG as the government tries to wean the country off dirty coal as part of its push to clear the skies, while the United States wants to sell more of its excess gas abroad.

New Offers in October

BUYSELLCRUDEOIL: NEW OFFERS IN OCTOBER

 AVIATION JET FUEL A1

PRICE: Gross US $42/ Net US $40

QUANTITY: 1 MILLION BARRELS

ORIGIN: Russia

LOADING PORT: FOB ROTTERDAM/HOUSTON/QINGDAO/PRIMORSK
PAYMENT TERMS: T/T/DLC

 ULTRA LOW SULPHUR DIESEL (EN 590)

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QUANTITY: 30,000MT

ORIGIN: RUSSIA

LOADING PORT: FOB ST. PETERSBURG/PRIMORSK/NOVORROSYSKIY

PAYMENT TERMS: T/T/DLC

LIQUIFIED NATURAL GAS (LNG)

MINIMUM QUANTITY: (50.000 MTs)

MAXIMUM QUANTITY: (500.000 MTs)

PRICE: Gross $280 / Net $270

COMMISSION: 50% Buyer Side /50% Seller Side

LOADING PORT: NOVO/PRIMORSK /VLADIVOSTOK

DELIVERING PORTS

CST-180,380,280 FUEL OIL

MINIMUM QUANTITY 😦 30,000MTs)

MAXIMUM QUANTITY 😦 200,000 MTs)

PRICE: Gross $270 / Net $260

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LOADING PORT: NOVO/PRIMORSK /VLADIVOSTOK

DELIVERING PORTS: Buyer Choice.

GASOLINE, 87, 89, 93

MINIMUM QUANTITY

MAXIMUM QUANTITY

PRICE: Gross $270 / Net $260

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LOADING PORT: NOVO/PRIMORSK /VLADIVOSTOK

DELIVERING PORTS: Buyer Choice.

 PETROLEUM COKE (PET COKE)
MINIMUM QUANTITY: 30,000 MT
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Author: ANDREAS HADJOUDES

adfplan@gmail.com