Impasse deepens over B.C. LNG tax as Shell warns 7% levy not globally competitive

Financial Post | Business

Royal Dutch Shell Plc is leading an industry pushback against the scope of British Columbia’s proposed tax on liquefied natural gas exports, extending a standoff over fiscal terms for the upstart sector.

The B.C government this week announced a two-tier tax structure for the industry as part of the provincial budget. Under the scheme, profits from LNG plants will be taxed at an initial rate of 1.2%, with rates climbing as high as 7% once companies recover capital costs associated with building the multibillion-dollar export terminals.

The B.C. government said the rates are competitive with rival export jurisdictions in Australia and five U.S. states, including Alaska, Texas and Louisiana.

We’ve been clear that the rate needs to be globally competitive if B.C. is to build an LNG industry

But Shell on Wednesday questioned that assessment, deepening an impasse that has delayed final investment decisions and threatened to snuff out a…

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China’s Sinopec cuts domestic polyethylene prices amid high inventories

Sinopec has cut its polyethylene offers this week in a move that could lead market trends.

Major Chinese petrochemical producer Sinopec Corp cut its polyethylene offers by Yuan 100-500/mt ($16-83/mt) this week, amid pressure from mounting stocks, a company source said Wednesday.

In eastern China, Sinopec trimmed its high density polyethylene offers by Yuan 100/mt to Yuan 12,100/mt ex-works basis, slashed its linear low density PE offers by Yuan 350/mt to Yuan 10,850/mt and cut its low density PE offers by Yuan 500/mt to Yuan 11,800/mt, ex-works basis.

Downstream demand had improved marginally after the Lunar New Year holidays but combined stocks held by local producers including Sinopec and PetroChina were hovering at exceptionally high levels of 1.1 million-1.2 million mt, compared with 800,000 mt in the same period last year.

The local producer was considering a cut in run rates at its production sites across China, but had not yet reached a decision on the matter, the source added.

–Michelle Ho, Michelle.ho@platts.com
–Edited by E Shailaja Nair, shailaja.nair@platts.com

The full article is visible via the link below – Pankaj Oswal

http://www.platts.com/latest-news/petrochemicals/singapore/chinas-sinopec-cuts-domestic-polyethylene-prices-27950018

China’s January crude oil imports hit record high. Russia expects 2014 oil output to renew post-Soviet record

theoilandgasworld

China’s crude oil imports rose 11.9 percent in January from a year earlier to a record 6.63 million barrels per day (b/d), as companies restocked ahead of the Lunar New Year holiday despite lukewarm demand growth. The surprisingly high figure could also be due to data distortions ahead of the week-long break that fell across the first week of February, as companies tend to advance book cargos that are due to arrive in early February.

China, the world’s top energy consumer, took in 28.16 million tonnes, or 6.63 million bpd, of oil last month, up 5.1 percent from the previous record of 6.31 million in December of last year, according to the General Administration of Customs.

Demand for crude appeared less robust than the imports indicate as the top two state refiners Sinopec and PetroChina were due to process 1.9 percent less oil in January than in December, according to…

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Shell’s Arrow Energy to cut hundreds of CSG jobs in QLD

CELOTTI WORKFORCE

January 20, 2014. The Australian, Kim Christian.

 

 

 

 

 

 

 

 

 

ARROW Energy is planning to cut jobs and reduce costs at its coal seam gas (CSG) project in central Queensland after key shareholder Royal Dutch Shell downgraded its profit forecasts.

Hundreds of jobs are believed to be at risk at Arrow which employs 1200 people.

A spokesman confirmed the company has conducted a review of staffing levels as it cuts costs.

But he was unable to give details of the number of jobs at risk.

“While the company acknowledges this will be a difficult time for employees, it is committed to supporting them through this transition,” the spokesman said.

“The company remains focused on finding additional value and reducing overall costs.”

The spokesman added that Arrow would continue to assess development options, including joint venture opportunities, as it looks to develop its gas reserves.

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