BP to offload 50 percent stake in China petrochem venture
Oil major BP is seeking to sell its 50 percent stake in Secco, a Chinese petrochemicals joint venture, marking its first significant exit from a Chinese business.
The company is believed to have appointed an investment bank to scout for potential buyers for its shareholding. Some sources believe that the deal will fetch roughly US $2-$3 billion.
Secco’s other owners include China Petroleum and Chemical Corporation (Sinopec Corp) and Shanghai Petrochemical Company Limited (SPC). Secco, which is located in Caojing near Shanghai, is China’s largest petrochemicals refinery and was constructed at a cost of $2.7 billion.
Sinopec has the right of first refusal on the potential sale, though banks and Chinese state enterprises are unlikely to come forward to purchase the stake, as many executives are currently preoccupied with corruption probes. Therefore, the stake has been offered to existing refinery operators in China, Japan, South Korea, Taiwan and Europe.
In July, BP revealed it was seeking buyers for four of its UK-based fuel storage terminals as well as a stake in the United Kingdom Oil Pipeline. The company posted a record annual loss of $6.5 billion for last year amid persistently low oil prices. Some observers have noted that the sale of assets is likely part of an effort by BP to cut costs and focus on core businesses. This year, it will dispose of assets worth between $3 billion and $6 billion,
In the years since the toxic Gulf of Mexico oil spill, BP has offloaded more than $50 billion in assets in order to pay cleanup costs and legal bills.
This story was originally reported by Reuters.
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.