GDF SUEZ pursues its development in China
- Creation of a joint venture with SCEI DES for the development of distributed energy projects in Sichuan
- Signature of a MOU on Gas Supply with Beijing Enterprises Group
GDF SUEZ strengthens its presence in China and signs two significant contracts on the occasion of the visit of the French Prime Minister Manuel Valls.
A new tri-generation project in Sichuan
Gérard Mestrallet, Chairman and CEO of GDF SUEZ signed an agreement with Sichuan Energy Investment Distributed Energy Systems (SCEI DES) to create a joint venture for the joint development and the operation of a natural gas distributed energy project in the Guangan Huixiang Innovation Park located in Yuechi, Sichuan Province. GDF SUEZ has a 49% stake in the Joint Venture Company, SCEI DES holds the remaining 51%.
This project is the first natural gas distributed energy project in an industry park in Sichuan. The joint venture company will be the exclusive external supplier of heating and cooling for the industrial clients and the electricity will be sold directly to the grid. This combined heat and power (CHP) project will produce 37 MW electricity, 53 MW heat and 2.1 MW cold by two gas turbines and a steam turbine. The total amount of investment is around 350 million yuan RMB (around 40 million Euros), and the project duration is 20 years. The commissioning is planned at the end of 2016.
SCEI DES is a major player of the Province of Sichuan in the energy market. The company operates in energy project investment and investment asset management services, distributed energy planning and design services, contracted energy management, energy conservation technology services, project management services, professional advice services and other technical services.
Developing its presence in natural gas
Gérard Mestrallet has also signed a MOU on gas supply with Beijing Enterprises Group. This agreement aims at developing their cooperation in upstream resource projects, in particular LNG sourcing and trading, co-development and investment in gas exploration and production around the world. This agreement completes the previous MOU signed with Beijing Enterprises Group in March 2014, to develop energy projects in Beijing and other parts of China and promote the development of sustainable urban eco-districts.
GDF SUEZ and Beijing Enterprises Group enjoy 26 years’ close cooperation. Beijing Enterprises Group is specialized in urban infrastructure and utility investment, operation and management. As a major player in Beijing, it has business presence in both Chinese and international market. Its subsidiary Beijing Gas Group is a major player in the natural gas market. Beijing Enterprises Group invests and operates over a hundred projects in mainland China.
On this occasion, Gérard Mestrallet said: “These two agreements strengthen our positions in China and illustrate our ambition to develop our activities in natural gas and energy services in the country. It is fully in line with GDF SUEZ’s strategy and China’s targets to promote energy with a lower impact on environment by using natural gas instead of coal and energy efficiency with networks.”
GDF SUEZ presence in China
GDF SUEZ has been present in China for over 40 years. In 2008, GDF SUEZ opened its first representative office in China and started to develop relationship and cooperation with Chinese partners in the energy field such as: natural gas, LNG, gas infrastructure, energy services and engineering services, for projects in China as well as in overseas markets.
As a global energy player, GDF SUEZ also has high ambition in China. For this reason, the Group has recently created a dedicated Business Unit in charge of all activities in China and having a direct reporting line with CEO of the Group: GDF SUEZ China.
In power generation, GDF SUEZ supports joint carbon emissions reduction projects (Clean Development Mechanisms–CDM), while its engineering teams assist in the development of the Taishan EPR and support the development of hydroelectric projects in other countries with Chinese partners.
In natural gas, GDF SUEZ signed a worldwide partnership in 2011 with the Chinese sovereign fund CIC granting the latter a 30% share in GDF SUEZ exploration and production activities. The Group sold 2.3 million metric tons of LNG to the China National Offshore Oil Corporation (CNOOC), with deliveries beginning in 2013, and installed the first floating regasification terminal in China. In 2012, GDF SUEZ also began a cooperation agreement with PetroChina to explore the upstream gas potential in Qatar, then extended the agreement to gas storage in China in 2013 (development support for six sites). The Group currently assists Shanghai Gas Group, a unit of Shenergy Group, for the expansion of one of its LNG terminals.
In 2014, GDF SUEZ signed two major cooperation agreements to develop energy projects in the large Chinese cities: the first one with Beijing Enterprises Group in Beijing and a second one with Shenergy in Shanghai.
GDF SUEZ develops its businesses (power, natural gas, energy services) around a model based on responsible growth to take up today’s major energy and environmental challenges: meeting energy needs, ensuring the security of supply, fighting against climate change and maximizing the use of resources. The Group provides highly efficient and innovative solutions to individuals, cities and businesses by relying on diversified gas-supply sources, flexible and low-emission power generation as well as unique expertise in four key sectors: independent power production, liquefied natural gas, renewable energy and energy efficiency services. GDF SUEZ employs 147,400 people worldwide and achieved revenues of €81.3 billion in 2013. The Group is listed on the Paris and Brussels stock exchanges and is represented in the main international indices: CAC 40, BEL 20, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe and Euronext Vigeo (World 120, Eurozone 120, Europe 120 and France 20).