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Japan power firms' Nov gas consumption rises y/y
Tue Dec 13, 2011 2:09am GMT
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TOKYO Dec 13 (Reuters) - Japan's 10 power firms burned more natural gas in November than a year earlier to generate electricity to make up for a fall in nuclear plant utilisation amid safety concerns in the wake of the Fukushima nuclear crisis, industry data showed on Tuesday.
The regionally dominant utilities burned 4.11 million tonnes of liquefied natural gas (LNG) last month compared with 3.08 million tonnes a year earlier, data from the Federation of Electric Power Companies of Japan showed.
They generated 72.05 billion kilowatt-hours of electricity in October, down 5.4 percent from a year earlier.
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More thirst from JObama. The other interesting thing is the post on the ENN and Sinopec joint bid to purchase China Gas Holdings. Now I thought bonk said ENN was this trashy BBB- company that is a huge risk. Then why would Sinopec decide to joing venture with them?
"http://www.bloomberg.com/news/2011-12-12...
By Guo Aibing - Dec 12, 2011 9:24 PM ET
ENN Energy Holdings Ltd. (2688) and China Petroleum & Chemical Corp. (600028) offered HK$15.3 billion ($2 billion) cash for China Gas Holdings Ltd. (384) to gain control of a fuel distribution network covering 20 provinces.
...
ENN and China Petroleum, known as Sinopec, bid HK$3.50 a share for the Hong Kong-based company that supplies piped-gas to the mainland, the companies said today in a statement. The offer is priced at 25 percent more than China Gas’s last close.
Buying China Gas will give the companies access to its 6.6 million residential customers and 41,981 industrial and commercial users in the world’s second-biggest economy. China Gas last month reported a fourfold gain in first-half profit and said it had been approached by an investor after the arrest of two senior executives caused the stock to slump this year.
“China Gas’s stock has been undervalued for a long while, so both investors are really getting on board at the right time,” said Shi Yan, a Shanghai-based analyst at UOB-Kay Hian Ltd. “ENN has always wanted to expand its utility network and Sinopec has been looking to diversify its business from over- reliance on refining.”
China Gas gained 22 percent to HK$3.41 at 9:57 a.m. in Hong Kong. ENN rose 0.4 percent to HK$27.20 and Sinopec dropped 1.6 percent. The benchmark Hang Seng Index (HSI) declined 1.1 percent.
ENN, the fourth-largest Hong Kong-listed gas supplier, will finance 55 percent of the deal as it plans to expand its distribution network. Sinopec will cover the rest of the financing, the statement said.
Deal Valuation
The offer is priced at 11.29 times earnings before interest, tax, depreciation and amortization, compared with 10.95 times in 10 comparable deals, according to data compiled by Bloomberg.
Today’s bid follows China Petrochemical Corp. agreeing to invest an estimated $1 billion to increase its stake in an Australian liquefied natural gas project led by ConocoPhillips and Origin Energy Ltd. It takes the number of energy deals by Chinese and Hong Kong-based companies to 279 this year worth $43 billion, compared with last year’s record 367 deals worth $59.6 billion, according to data compiled by Bloomberg.
China Gas said Nov. 14 an independent investor was keen to buy a “substantial stake.” The distributor also runs 112 compressed natural gas filling stations and 44 liquefied petroleum gas distribution projects.
Citigroup Inc. was named adviser to the bidders, according to the statement."
