China Direct

BP signs MoU to help China go green

CBI member, BP, has announced that it has signed an MoU with one of China’s leading solar project developers, JinkoPower Technology (JinkoPower), to provide integrated decarbonised energy solutions and services to customers in China.

The partnership aims to see BP and JinkoPower develop an innovative, integrated energy solution business, delivering renewable power and “Energy-as-a-Service” digital tools for commercial and Industrial customers in China. 

China is the largest and fastest growing renewable energy market in the world, and the country aims to reach 50% of power generation from non-fossil fuels by 2030. JinkoPower is one of the largest private solar project developers in China, and Jinko Solar has been the leading global solar module supplier for four consecutive years.

According to BP’s press statement, this MoU will bring together the skills and experience of both partners in solar development, distributed energy resources (DER) and digital technology, to deliver energy solutions to help decarbonise and optimise customers’ operations.

The MoU was signed in Shanghai last month by Simon Yang, BP China president and BP senior vice president, regions, cities & solutions for China and Xiande Li, chairman of JinkoPower and Jinko Solar. It was witnessed by Dev Sanyal, BP executive vice president, gas & low carbon energy, and other attending leaders of both sides.

Dev Sanyal said: “BP is committed to reimagining energy for people and the planet, and to supporting the energy transition to a low carbon future. Our partnership with JinkoPower aims to leverage BP’s leading experience in energy management and digital platforms, with JinkoPower’s world-class solar capabilities, to provide customers with integrated, low carbon Energy-as-a-Service offers.”

Simon Yang, BP China president and BP senior vice president, regions, cities & solutions for China, commented: “China is the world’s largest and most advanced solar market and one of the most important markets for bp to achieve its low carbon ambitions. We look forward to working with JinkoPower on renewable energy solutions to further contribute to the country’s energy transition, environmental protection and ecological progress.”

The partnership supports BP’s ambition to become a net zero carbon company by 2050 or sooner and to help the world get to net zero.

To read the press release in full, please follow the link.

BP sets net zero 2050 ambition

Please find CBI Member BP's 2050 Net Zero ambitions (bilingual) attached for your reference.

Our sincere thanks to BP's China team for sharing with CHINA DIRECT.

Download Bp-sets-ambition-for-net-zero-by-2050-fundamentally-changing-organisation-to-deliver

Download 新闻稿_BP壮志满怀，提出到2050年实现净零的全新远景

 

Shell partners with CNOOC to build Huizhou processing plant

 

CBI member, Shell has announced that it has signed a Memorandum of Understanding with China National Offshore Oil Corporation to build its first commercial-scale polycarbonate production plant in the southern Chinese city of Huizhou.

Polycarbonate is a transparent and impact-resistant polymer, widely used to make vehicle headlights and LED spotlights.

The production capacity of the polycarbonate plant is planned to be 260,000 tonnes per annum, Shell announced in a statement made Friday.

The MoU follows an agreement reached by the two energy giants in October 2018, that aims to build more production equipment at their jointly owned petrochemical complex in Huizhou.

Thomas Casparie, Executive Vice-President of Shell’s global chemicals business said, “[Shell] We have an advantaged route to production and are looking at investment in a number of commercial-scale units to serve the growing number of polycarbonate customers.”

At present, Shell and CNOOC has an ethylene production capacity of 2.2 million tonnes.

ExxonMobil signs China Chemicals Agreement

CBI member, ExxonMobil has announced that it has signed a framework agreement with the Guangdong Provincial People’s Government for a multibillion-dollar chemical complex in Guangdong Province.

The investment is part of the company’s plans to grow ExxonMobil’s manufacturing capacity in Asia and help meet expected demand growth for chemical products in China. The proposed construction would take place in Huizhou Dayawan Petrochemical Industrial Park.

The multi-billion-dollar project, which remains subject to a final investment decision on ExxonMobil’s side, would include a 1.2 million-tonnes-per-year Ethylene flexible feed steam cracker, two performance Polyethylene lines and two differentiated performance Polypropylene lines. Start up for the project is expected for 2023.

John Verity, president of ExxonMobil Chemical Company said: “Our agreement with the Guangdong Provincial Government demonstrates ExxonMobil’s interests in advancing the project from concept to completion. […] We value the government’s support and its experience in moving such a large-scale project forward.”

The new complex would rely on advanced proprietary technologies in direct steam cracking and performance polymers manufacturing. ExxonMobil has stated it hopes the introduction of its proprietary technology to the China market will help support progress toward China’s national petrochemical development priorities, which include self-sufficiency, diversified feedstock resources, rebalancing fuels versus chemicals and advancing new competitive technologies.

The framework agreement also confirms Guangdong Province’s support in progressing the Huizhou LNG receiving terminal, in which ExxonMobil intends to participate, including supply of LNG.

Shell signs major China deal as part of 40th anniversary celebrations

 

 

CBI member, Shell has announced that it has entered into an agreement with China National Offshore Oil Corp. to develop oils fields in the Pearl River basin.

The deal was arranged to coincide with China’s celebration of 40 years since the launch of President Deng Xiaoping’s policy of ‘reform and opening up’ and was inked following President Xi Jinping’s address to the nation.

The agreement covers 64,000 square kilometres in the Pearl River basin, to a depth of 3,000 metres.

Shell will be awarded parcels within the Pearl River basin, which it will then be able to explore in collaboration with CNOOC, Total SA and Chevron Corporation - as well as 6 smaller extraction companies. CNOOC issued a statement shortly after the signing ceremony stating that: “This is one of the real actions China is taking to show the world it’s willing to open business to the whole world […] the agreements will facilitate the establishment of a long term and stable cooperation and share the development opportunities to a certain extent in the Strategic Cooperation Areas.”

The Pearl River basin exploration contract builds on Shell’s existing partnership with CNOOC, and demonstrates that Shell is successfully managing to present itself as a trustworthy and reputable foreign partner to China’s oil & gas SOEs. The latest agreement sees the two companies diversify their engagement and adds oil & gas to their existing portfolio, which centres around petrochemicals production.

The announcement to extend their partnership finishes off a successful year for the joint venture; the CNOOC-Shell Nanhai Petrochemicals Plant opened in May. The site is the largest ethylene complex in China and utilises Shell’s industry-leading proprietary OMEGA, SMPO and polyols technologies. Ethylene is sold to the agricultural sector where it is used as a natural plant hormone to stimulate the ripening of fruit.

Shell and CNOOC hope to start producing 1.2 million tonnes per year of ethylene and deliver an oil output of 2 million barrels per day by 2025.

Please read more here.

 

BP announces new Tianjin Lubricant Plant Investment

 

CBI Member BP has announced that it has started the construction of a new lubricant blending plant in Tianjin.

The new plant is BP’s largest investment on a single lubricant blending plant to date and will see BP spend $214 million.

BP aims to bring the plant into operation by the end of 2021, it will specialise in producing grease and diverse kinds of lubricants for automobile, manufacturing, navigation and aviation with an estimated annual output of 200,000 tonnes.

BP has identified premium lubricants as a key area for potential growth due to rising demand from the China market. The Tianjin plant will be the third processing centre BP has opened in the Mainland.

It will be strategically located within the Tianjin Economic-Technological Development Area, in Binhai New Area, Tianjin, leveraging Tianjin’s location as a key transport hub and enabling BP to ensure a stable supply of raw materials and distribution of products.

Please read more here.

CBI makes the case for British Business in China

 

CBI MAKES THE CASE FOR BRITISH BUSINESS IN CHINA

The CBI’s Director-General is visiting China this week on a trade visit with the Prime Minister, the Rt. Hon. Theresa May.

Carolyn Fairbairn, CBI Director-General, said:

“The Sino-British relationship is a tremendous success story. From services to schools, and iPhones to tea, our countries have a special and integral place in each other’s lives.

“British businesses are keen to play their part in further deepening and engraining the economic ties between China and the United Kingdom. With the consumer market alone worth over £3.3 trillion, this relationship creates thousands of jobs in the UK and China, raising living standards and boosting productivity.

“As the UK forges a new global trading future, it is well ahead of the curve in making the most of its relationship with the world’s fastest growing economy. By making inroads into China’s lesser economically known regions, the UK stands to profit from China’s move from manufacturing and infrastructure into technology and services, writing a new chapter in the golden era of relations.”

30 January 2018

Notes to Editors:

Read the CBI’s latest report on British trade and investment with China, Sterling Assets China.

Across the UK, the CBI speaks on behalf of 190,000 businesses of all sizes and sectors. The CBI’s corporate members together employ nearly 7 million people, about one third of private sector-employees. With offices in the UK as well as representation in Brussels, Washington, Beijing and Delhi, the CBI communicates the British business voice around the world.

Media Contact:

CBI Press Office is available 24 hours a day on 0207 395 8239, or email: [email protected]. Follow the CBI (@CBItweets), Carolyn Fairbairn (CBICarolyn) and CBI China (CBIBEIJING) on Twitter.

BP expands China lubricant business

 

BP plans largest new lubricants plant to meet fast-growing demand in China

BP announced plans to build a new lubricants blending plant in China to help meet the country’s rapidly growing demand for high quality lubricants.

The new plant will be BP’s third lubricants blending plant in China and, with expected investment of around RMB1.5 billion (US$230 million), will also represent BP’s single largest blending plant investment worldwide.

“Premium lubricants are a growth business for BP and ensuring that we can meet demand in a country growing as quickly as China is essential to our success,” said BP Downstream chief executive officer Tufan Erginbilgic. “This third lubricants blending plant demonstrates our commitment to strengthening our competitiveness and building a sustainable lubricants supply chain in China.”

The new plant will serve as a strategic production hub for BP and Castrol’s lubricants business in China and complement the two lubricants blending plants already operating in China.

Please read more here.

CBI Sterling Assets Report on China Roadshow

 

  

The inaugural Sterling Assets Report has been on a pan-China Roadshow since its launch on Thursday 02 November in Beijing.

The objective of the Roadshow was to circulate the Report's key findings to the diverse and dynamic UK business network in China and encourage policymakers and local officials to use the Report to promote greater UK-China business investment. 

Additionally the Report was received by business stakeholders the CBBC, British Chambers, Department of International Trade (DIT) and a visiting delegation of the All Party Parliamentary China Group in Guangzhou.

China Direct would like to sincerely thank HM Consuls Cecile Elbeleidi in Chongqing, HM Consul Karen Maddocks in Guangzhou, HM Consul John Edwards in Shanghai and HM Consul Nick Whittingham in Wuhan for their support.

 

    

Please note that China Direct will have the Chinese language version of the Report available for review and download by mid-November.

Kindly find the original Report and Executive Summary attached below for your reference.

Download CBI China Sterling Assets Report

Download Sterling Assets China Executive Summary

Thank you. 

  

UK Ahead Of The Curve In China Investment Strategy - CBI

 

EMBARGOED: 00:01 Hours, Thursday 02 November, 2017UK AHEAD OF THE CURVE IN CHINA INVESTMENT STRATEGY – CBI

UK is China’s second largest European trading partner  

The UK is shifting its investment into inner regions of China and into new sectors, ahead of the curve of other nations, according to the CBI’s first ever Sterling Assets China report.

Download CBI China Sterling Assets Report

In 2016, the UK was China’s second largest trading partner in the European Union (behind only Germany) and the eighth worldwide, doing £55 billion worth of trade in goods with China. Indeed, after the USA and Germany it is the only country in the list of China’s top nine trading partners not in the Asia Pacific region.

The UK also ranks eighth in terms of foreign direct investment (FDI) into China over the last decade, at £4 billion. However, unlike other nations, Great Britain is shifting its focus from coastal to inland provinces, which have historically received a smaller share of FDI, so as to mirror the Chinese government’s Belt and Road development plans. Over half (57%) of British investment in 2015 (over £880 million) went to inland regions, led by Heilongjiang (£313 million) in the north east and Henan (£276 million) in the centre.

Of the £18.1 billion worth of UK exports to China in 2015, Shanghai tops the list (£4.2 billion), followed by Beijing (£2.4 billion) and Guangdong (£1.3 billion). 21% of British exports to China were in transport technology (automotive, rail, air and maritime), 12% in machinery & electrical, 8% in chemical products and 5% in metals. The UK’s top service export was travel (£1.5 billion), with 270,000 Chinese visiting the UK and 91,000 Chinese students enrolling in British universities – far more than from any other country.

Guy Dru Drury MBE, CBI Head of China, said:

“The Sino-British relationship is a great success story. As we delve deeper into the Golden Era of ties between China and the United Kingdom, we have so much to offer each other, and British business is keen to play its part.

“From cars to chemicals, and services to schools, British organisations – especially many smaller companies – are tapping into a growing market in China, one that plays to the UK’s best competitive strengths. With the consumer market worth over £3.3 trillion, instantly recognisable British products are a particularly strong match for a growing generation of affluent Chinese. Moreover, this relationship creates thousands of jobs in the UK and China, raising living standards and boosting productivity.

“As the UK forges a new global trading future, it is well ahead of the curve in making the most of its relationship with the world’s fastest growing economy. By making inroads into China’s lesser economically known regions, the UK stands to profit from China’s move from manufacturing and infrastructure into technology and services.”

Dame Barbara Woodward DCMG OBE, Her Majesty’s Ambassador to the People’s Republic of China, said:

“Supporting UK-based companies to invest and operate overseas and become global businesses is part of our strategy to expand mutually beneficial trading relationships around the world. This is especially so in China, the world’s second largest and fastest growing economy.

“This report showcases a wide range of British investment and highlights the strengths and growing confidence of British companies. Investment in China by British companies can generate wealth for the UK, support British jobs, help build UK-based supply chains, and support China’s own economic development.

“As we continue to address the challenges for businesses investing across the globe and help them to make the most of opportunities, positive and proactive engagement of UK and Chinese businesses remains vitally important.”

Between 2015 and 2016, greenfield project investment into China exceeded £2.25 billion. The financial services sector saw the highest value investments (£488 million), followed by logistics (£292 million), consumer products (£268 million) and business services (£209 million).

02 November 2017

Notes to Editors:

Across the UK, the CBI speaks on behalf of 190,000 businesses of all sizes and sectors. The CBI’s corporate members together employ nearly 7 million people, about one third of private sector-employees. With offices in the UK as well as representation in Brussels, Washington, Beijing and Delhi, the CBI communicates the British business voice around the world.

The CBI 2017 Annual Conference will take place on Monday 6th November at the NEW LOCATION of the InterContinental London – The 02 hotel. Media can now register here (clicking on the “Media” box, entering the code 7286). Please note that journalists will be asked to upload a photo as part of the registration process. The closing date for applications is Thursday 02 November.

Follow the CBI (@CBItweets) on Twitter and on the day of annual conference using the hashtag #CBI2017.

Media Contact:

CBI Press Office is available 24 hours a day on 0207 395 8239, or email: [email protected]. Follow the CBI (@CBItweets) and CBI China (@CBIBEIJING) on Twitter.