Russia, China Sign Second Blockbuster Gas Deal
China and Russia deepened their energy ties with a second billion-dollar deal that lessens Russia’s reliance on Europe and would secure almost a fifth of the gas supplies China needs by 2020. Russian President Vladimir Putin and his Chinese counterpart Xi Jinping signed the preliminary gas-supply accord in Beijing amid the Asia-Pacific Economic Cooperation Summit. The deal is slightly smaller than the $400 billion agreement reached earlier this year, shortly after Russia annexed Crimea. Once deliveries begin, China will unseat Germany as Russia’s biggest gas market.
Biofuel Firm Kior Files for Bankruptcy
Kior Inc., a maker of fuel derived from cornhusks, woodchips and switchgrass, has filed for bankruptcy protection with a plan to sell its assets to affiliates of backer Vinod Khosla if no better offer materializes. Geggenheim Securities LLC has solicited more than 165 potential buyers and the firm will continue to market its assets for sale. If no higher bidder is found, senior leaders have agreed to convert $16 million of senior secured debt into new equity. Production at its commercial-scale biofuel plant in Mississippi has been idled and decommissioned since January to minimize cost.
Pakistan PM Seeks Energy Deals During China Visit
Pakistan Prime Minister Nawaz Sharif is looking to secure delayed energy deals with China to help boost his country’s economy. More than two dozen deals will be signed with China during the two-day trip. They will mostly be related to power development in the southwestern city of Gwadar, where China is helping in the construction of a port. Chinese president Xi Jinping postponed a trip to Pakistan in September amid political demonstrations in Islamabad against Sharif for allegedly manipulating last year’s election. Xi had been expected to sign $34 billion of investment deals during that trip.
Former Petrohawk President Takes Shale Expertise Down Under
Dick Stoneburner , former Petrohawk Energy Corp. president, is now bringing his experience in U.S. shale to Australia as a board member of Tamboran Resources Ltd. Based in Sydney, Tamboran plans to go public in the U.S. in the first quarter of next year, says CEO Joel Riddle. The aim is to feed gas from shale fields to a liquefied natural gas plant in Australia for export to Asian markets. Australia has the globe’s seventh-largest shale gas resources. Stoneburner’s understanding of rocks as well as his experience in drilling is expected to tap Australia’s underground resources with relative success.
