2025-10-02 12:30

Chinese banks lent over $3.7 billion to Aramco’s $11 billion Jafurah gas project Beijing’s funds have passed on opportunity to participate in equity opportunity Pullback underscores US–China tensions, contrasting Aramco’s 2022 Saturn pipeline deal DUBAI, Oct 2 (Reuters) - China’s biggest state banks are lending billions to Aramco’s Jafurah gas project, though its funds have passed on the opportunity to invest in the venture, three people familiar with the matter said. Chinese banks provided more than a third of the financing for what will potentially be the biggest shale gas project outside of the U.S., with Bank of China, ICBC and China Construction Bank each lending about $1 billion and Agricultural Bank of China around $750 million, two people familiar with the matter said. Sign up here. Aramco (2222.SE) , opens new tab in August signed an $11 billion lease-and-leaseback agreement for the processing facilities with a consortium led by Global Infrastructure Partners, part of U.S. BlackRock (BLK.N) , opens new tab, the world's biggest investor. Chinese funds, some of which were given the chance to take part in the equity funding round for Jafurah, didn't participate, according to two people who cited U.S.-China trade tensions. Chinese fund absence contrasts with Aramco’s 2022 deal, when China’s Silk Road Fund and China Merchants Capital joined BlackRock and Keppel in a pipeline venture and shows how deteriorating U.S.–China trade relations are shaping deal-making in the Gulf. Aramco's Jafurah project is central to Saudi Arabia's ambitions to become a major global player in natural gas and to boost its gas production capacity by 60% by 2030 from 2021 levels. Under the terms of the deal, Jafurah Midstream Gas Company will lease processing assets to Aramco for 20 years, with Aramco retaining 51% and the GIP-led group holding 49%. BlackRock’s GIP has anchored the Jafurah equity group, joined by investors including Abu Dhabi sovereign wealth fund Mubadala and Abu Dhabi investment firm Lunate, according to four sources familiar with the deal. Aramco, BlackRock, Mubadala and Lunate declined to comment. The U.S. and Chinese governments did not respond to a request for comment. Bank of China, ICBC, China Construction Bank and Agricultural Bank of China also did not respond to a request for comment. Beijing has reportedly instructed state funds to steer clear of U.S. private-capital firms and even non-U.S. managers with American exposure, the Financial Times reported in April. Hong Kong-based CK Hutchison’s $22.8 billion plan to sell 43 ports, including two at the Panama Canal, to a BlackRock-MSC consortium earlier this year drew sharp criticism from Beijing. Now, under Chinese pressure, Hutchison is in talks to add shipping giant COSCO to the deal, even as U.S. President Donald Trump has called for curbing China’s involvement in the canal, sources and analysts told Reuters in July. China, the biggest buyer of Saudi oil, helped broker Riyadh’s 2023 rapprochement with Iran after years of hostility that had fuelled conflicts across the region. Beijing's role in the breakthrough shook up dynamics in the Middle East, where the United States was for decades the main dealmaker. https://www.reuters.com/business/finance/chinas-banks-lend-saudi-gas-project-while-its-funds-sit-out-blackrock-led-deal-2025-10-02/

2025-10-02 12:23

CAPE TOWN, Oct 2 (Reuters) - Senegal plans to start construction of a second oil refinery next year to boost domestic processing capacity, and is seeking $2 billion to $5 billion in investment for the scheme, the CEO of national refining company SAR said on Thursday. The country has received financing offers from potential investors including China, Turkey and South Korea, Mamadou Abib Diop told Reuters on the sidelines of an African energy conference in Cape Town. Sign up here. Abib Diop said feedstock for the new plant would come mainly from Senegal's offshore Sangomar oil and gas field, operated by Woodside Energy (WDS.AX) , opens new tab with national oil company Petrosen a minority shareholder. The field started producing last year with annual output of 34.5 million barrels, or some 4.6 million tons. SAR, West Africa's oldest refinery, processes 1.5 million tons of crude oil a year or around 30,000 barrels a day, but faces a domestic shortfall. "This gap we will cover with a project named SAR 2.0, which means that we will add a second refinery site in order to add 4 million tons (of processing capacity) per year," Abib Diop said. He said by a targeted 2029 production start-up date, SAR wanted to achieve self-sufficiency in domestic supply of petroleum products, as well as potentially exporting to elsewhere in the region. There is no final decision yet on where the new refinery will be located or if government would take an equity share in its development, Abib Diop told Reuters. "A lot of investors are coming and giving their interest about financing these projects," he added. https://www.reuters.com/business/energy/senegal-aims-start-construction-new-refinery-next-year-2025-10-02/

2025-10-02 12:02

MILAN, Oct 2 (Reuters) - Italian power plant developer Ansaldo Energia is looking to expand into new markets such as Vietnam and Malaysia through acquisitions as its aims to double its turnover in the coming years, its chief executive said on Thursday. The group, which also makes nuclear reactors and is owned by Italian state lender Cassa Depositi e Prestiti, recovered from a slump caused by falling orders during the COVID pandemic and is now looking at increasing its footprint outside Europe. Sign up here. "We need to change scale, grow, find new partners and invest in capacity and technology," CEO Fabrizio Fabbri told reporters on the sidelines of the Energy Summit conference in Milan. "This means acquisitions... we need to produce more." Fabbri said the company aims to strengthen its position in the thermal power sector, which includes gas and steam turbines and generators. Ansaldo is already present in countries such as the United Arab Emirates and China, and is looking next to Vietnam and Malaysia. "We are analysing several opportunities. We are not in a hurry, but we know we need to grow and double our turnover in the coming years," Fabbri said. Separately, the group said on Thursday it completed the upgrade of an Italian power plant owned by Swiss group Alpiq, installing turbines that could replace up to 25% of natural gas with hydrogen. ($1 = 0.8511 euros) https://www.reuters.com/sustainability/boards-policy-regulation/ansaldo-energia-eyes-acquisitions-asia-push-boost-sales-ceo-says-2025-10-02/

2025-10-02 11:54

Oct 2 (Reuters) - Occidental Petroleum (OXY.N) , opens new tab will sell its chemicals arm OxyChem to Warren Buffett's Berkshire Hathaway (BRKa.N) , opens new tab for $9.7 billion, the company said on Thursday, marking its biggest divestment yet to slash debt after years of costly acquisitions. If the deal closes, it would also be the biggest for Berkshire since its $11.6 billion purchase of insurance firm Alleghany Corporation in 2022, and expand its chemical portfolio beyond Lubrizol. Sign up here. Berkshire is Occidental's largest shareholder and it began acquiring stake in the U.S. oil and gas producer in February 2022, around when Russia invaded Ukraine. The divestment highlights the close ties between the two. In a 2019 meeting with Buffett, Occidental CEO Vicki Hollub secured a $10 billion investment that allowed her to make an offer for oil producer Anadarko Petroleum, outbidding rival Chevron to secure some of the richest shale oilfields in Texas. But the $55 billion purchase of Anadarko left Occidental saddled with debt. The burden exacerbated after the company closed its $12 billion acquisition of privately held U.S. shale oil producer CrownRock last year. To reduce its massive debt load, which stood at $23.34 billion by the end of June, Occidental been steadily divesting assets in recent years. The company had disclosed in August $950 million of additional divestitures since the start of the second quarter, of which $370 million already closed and it repaid $3 billion of debt year-to-date. Occidental said on Thursday it would use $6.5 billion of the proceeds to reduce debt, bringing the total principal debt below the $15 billion target set after the CrownRock deal. TPH analyst Matt Portillo said the debt repayment should open the door for increased shareholder returns in the form of share repurchases. Occidental shares were up 1% in premarket trading. CEO Hollub said the sale of OxyChem, which produces chemicals used for treating swimming pools and vinyl products used for water supply piping and medical supplies, would allow Occidental to "unlock 20-plus years of low-cost resource runway" in oil and gas. The unit had generated a combined revenue of $2.42 billion in the first two quarters of this year. The deal, expected to close in the fourth quarter, also indicates that Occidental is refocusing on its oil and gas business, which formed 75% of its total earnings last year. https://www.reuters.com/legal/transactional/occidental-sell-oxychem-unit-berkshire-97-billion-2025-10-02/

2025-10-02 11:45

Deal with Engie can cover 5% of Hungary's demand Follows deal with Shell over LNG supplies Hungary says no plans to drop Russian imports BUDAPEST, Oct 2 (Reuters) - Hungary on Thursday signed its biggest ever deal to buy liquefied natural gas from French firm Engie (ENGIE.PA) , opens new tab, a second agreement in as many months that will diversify its supply away from top energy provider Russia. U.S. President Donald Trump said last month he would urge Hungary to stop buying Russian oil, part of a push to pressure NATO allies to cut energy ties with Moscow over its war with Ukraine. Hungarian Prime Minister Viktor Orban said dropping Russian energy would be a disaster for Hungary’s economy. Sign up here. On Thursday Hungarian natural gas wholesaler MVM CEEnergy agreed to buy 400 million cubic metres of gas a year from Engie between 2028 and 2038. Given Hungary consumes around 8 billion cubic metres of gas a year, that would cover 5% of its demand. The deal follows another Hungary signed last month with Shell to buy 200 mcm of natural gas a year from January 2026, equal to around 2.5% of its demand. Hungary's Foreign Minister Peter Szijjarto said at the signing ceremony for the Engie deal that it was the longest-term LNG contract in Hungary's history, and will serve as a pillar to the country's energy security. "Diversification for us does not mean that we replace an existing, well-functioning supply relationship with another," he added. Slovakia and Hungary have rejected European Commission plans to phase out Russian gas and other energy imports, deepening a rift with Brussels over relations with Moscow. "We do not accept any pressure or coercion in this issue and we will not pay a war premium," Szijjarto said. Engie did not specify the origin of the gas it will supply to Hungary. European LNG buyers and traders often source their gas from multiple producers including the U.S., the Middle East, Africa, Australia and sometimes Russia. Hungary signed a 15-year deal in 2021 with Russia to buy 4.5 billion cubic metres of gas annually, and increased purchases from Gazprom last year, importing some 7.5 billion cubic metres of Russian gas via the Turkstream pipeline. Szijjarto said last month that Hungary had imported 5 billion cubic metres of gas via Turkstream by the end of August, which meant this year's gas imports via Turkstream could hit a record high. Hungary, which ships gas to Slovakia via an interconnector, also buys gas from Romania, and smaller volumes via the HAG pipeline which runs from Austria into Hungary. https://www.reuters.com/business/energy/hungary-buys-gas-frances-engie-diversifying-supply-russia-2025-10-02/

2025-10-02 11:35

Kretinsky, Thyssenkrupp give up steel joint venture Move clears way for talks with India's Jindal Steel Thyssenkrupp shares hovering around six-year high FRANKFURT/DUESSELDORF, Oct 2 (Reuters) - Czech billionaire Daniel Kretinsky has agreed to sell his 20% stake in Thyssenkrupp's (TKAG.DE) , opens new tab steel unit and scrap plans for a joint venture for the business, both parties said in a joint statement, paving the way for a possible deal with Jindal Steel. The sale ends protracted talks over what could have become a German-Czech steel and energy giant, discussions that have not made any measurable progress since Kretinsky bought a fifth of Thyssenkrupp Steel Europe (TKSE) last year. Sign up here. Kretinsky has already given up his seat on TKSE's supervisory board, along with another senior executive of his EP Group, a company spokesperson said. Shares in Thyssenkrupp rose as much as 3% to hit their highest level in nearly six years before trading 0.7% lower at 1208 GMT. CLEAR PATH FOR TALKS WITH JINDAL STEEL It now creates momentum for Thyssenkrupp to intensify talks with India's Jindal Steel International, which last month submitted an indicative bid for all of TKSE, a volatile business its parent has sought to divest. The statement said that Kretinsky's EP Group "respects Thyssenkrupp AG's preference to concentrate on discussions with Jindal Steel International" and that it would be reimbursed for the purchase price it paid to Thyssenkrupp for the TKSE stake. While both parties have never disclosed the purchase price, people familiar with the matter have put it at around 140 million euros ($164 million). The news comes amid growing uncertainty over the future of steelmaking in Europe, as the sector contends with cheap Chinese imports, high energy costs and delays to hydrogen-based decarbonisation in one of the most polluting industries. Kretinsky's EP Group and Thyssenkrupp had the aim of eventually forming a 50/50 joint venture for TKSE, but talks have been fraught with difficulties as powerful unions have accused the Czech businessman of refusing to engage. "The management board can and must concentrate fully on the talks with Jindal," said Juergen Kerner, Thyssenkrupp's deputy supervisory board chairman and a senior member at IG Metall, Germany's biggest trade union. "In particular, details on financing must now be clarified quickly, but above all thoroughly. The employee side expects to be involved at an early stage." ($1 = 0.8511 euros) https://www.reuters.com/markets/commodities/thyssenkrupp-daniel-kretinskys-ep-group-have-mutually-agreed-end-talks-about-50-2025-10-02/