OBOR and the future of energy trade

An interesting study of Eni investigates for opportunities in the energy trade and OBOR.

” But there’s more to OBOR than trade; it also has the potential to redraw the global energy map, disrupting the oil and gas sector and opening up opportunities for collaboration. […]

Based on her analysis, some of the energy opportunities emerging from the OBOR strategy include:

Yamal LNG, Russia: SRF provided a $12 billion, 15-year loan to Novatek and acquired a 9.9 percent stake in the Russian company’s $27.5 billion, 16.5-million-tons-per-annum (mmtpa) Yamal LNG Project in December 2015. The lead shareholder is Novatek with a 50.1 percent share, followed by France’s Total and CNPC at 20 percent each. This follows two 15-year loans of $10.6 billion and $1.5 billion provided in April 2015, by the Export-Import Bank of China and the China Development Bank, respectively.

China-Central Asia Gas Pipeline, Line D, Central Asia: China signed intergovernmental agreements with Uzbekistan, Tajikistan and Kyrgyzstan in September 2013 to build the fourth line – a 1,000-km line with a transmission capacity of 30 billion cubic meters per annum (bcma) – at the estimated cost of $10 billion. Construction is reportedly on hold.

Gwadar-Nawabshal LNG Terminal and Pipeline, Pakistan: Part of the China-Pakistan Economic Corridor Scheme, the LNG terminal and pipeline project was signed in April 2015 for an estimated total value of $46 billion. The project, to build an LNG terminal in the Balochistan province and a gas pipeline between Iran and central Pakistan, was announced in October 2015.

Yanbu Refinery, Saudi Arabia: The joint-venture refinery project between Sinopec and Aramco became operational in January 2016. Although this is a commercial project between state-owned Saudi Aramco and China’s Sinopec, Saudi Arabia is one of the important countries identified by China on the OBOR routes.

Other Projects: China General Nuclear Power Corporation (CGN) acquired 13 gas-fired power projects in five countries along the OBOR (Malaysia, Egypt, Bangladesh, UAE, and Pakistan) from Edra Global Energy Bhd of Malaysia for $2.3 billion in March 2016. The acquisition raised CGN’s overseas installed capacity to 8.85 GW.