France Soon to Launch 9.2GW Offshore Wind Tender

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• Connecticut to ID Offshore Wind Supply Chain Opportunities

  The Connecticut Wind Collaborative (CWC) has launch of the Connecticut offshore wind industry study, which aims to identify and expand offshore wind supply chain opportunities for Connecticut and the Northeast region.The study will build on build the Connecticut offshore wind strategic roadmap, and will be led by Xodus and the Pew Charitable Trusts, experts in supply chain analysis and offshore wind development.The study aims to solidify Connecticut’s position as a key player and regional collaborator in offshore wind.With a focus on addressing regional supply chain gaps, fostering regional collaboration, and supporting local manufacturers, the study promises to yield sustainable benefits for the state’s manufacturing sector and contribute to long-term economic growth.The study will feature stakeholder engagement and clear, actionable recommendations, and is expected to be released in the spring of 2025.“Now is a critical time for state collaboration in order to build upon complementary strengths and answer shared challenges that will best enable the growth of a robust regional offshore wind industry.“This study will be unique in recognizing not only the powerful role Connecticut businesses play in the emergent offshore wind sector, but also the benefits of what can be further achieved when working in partnership with neighboring states to develop regional capability,” said Andy Logan, Head of Industry Development at Xodus.The Connecticut Department of Economic and Community Development has contributed $70,000 to the initiative, and the Southeastern Connecticut Enterprise Region has contributed $50,000. Other industry partners have also provided funding.

• Mammoet to Marshal XL Monopile Foundations for RWE’s Offshore Wind Farms

  Mammoet has signed a contract with Buss Ports to marshal over 100 XL monopile foundations for RWE’s offshore wind farms Nordseecluster A and Thor.The Nordseecluster, with a planned capacity of up to 1.6 GW, is one of the largest offshore wind energy projects in Germany and will be constructed in two phases (A & B).Thor, with a planned capacity of more than 1 GW to power more than one million homes, is Denmark’s largest to date.Mammoet will manage the phased load-in, temporary storage and load-out of 116 XXL monopiles for both wind farm projects at Buss Terminal Eemshaven in the Netherlands.The largest foundations will weigh around 1,700 tonnes and measure 96 meters in length.The monopiles will be offloaded onto the quay using a RoRo linkspan ramp and transported using Self-Propelled Modular Transporters (SPMTs) fitted with saddles.The SPMT trailers will then drive the monopiles onto storage dunes, ready to be called off and shipped to the wind farms located in the German and Danish waters of the North Sea.“This is a complex marshalling operation, with large components for both farms needing to be moved and managed on a single site.“Combining our specialist heavy transport equipment with our engineering experience of monopile handling, we are delighted to support the development of these significant offshore wind projects concurrently,” said Wouter Santen, Project Manager at Mammoet.“Mammoet has a proven track record for managing the movement of monopiles safely and efficiently. Having them by our side during the planning stage has been invaluable. We look forward to working with them as we move into the assembly phase,” added Marc Wegman, Managing Director of Buss Terminal Eemshaven.

• Masdar, SOCAR and ACWA Set Sights on 3.5GW Offshore Wind Projects in Azerbaijan

  UAE’s clean energy powerhouse Masdar has signed a memorandum of understanding (MoU) with SOCAR Green and ACWA Power to develop 3.5 GW of offshore wind projects in the Azerbaijan section of the Caspian Sea.The potential projects would be Azerbaijan’s first offshore wind farms. The agreement supports plans by Azerbaijan to develop renewable energy, green hydrogen and water desalination projects.“Azerbaijan is a key strategic partner for Masdar and the signing of this Memorandum of Understanding with our partners today paves the way to accelerate the scale of Azerbaijan’s clean energy vision.“We are proud to expand our partnership with ACWA Power and SOCAR to further explore renewable energy projects in the region, especially the enormous offshore wind potential in the Caspian Sea,” Mohamed Jameel Al Ramahi, CEO of Masdar, said:“This agreement represents an important step forward in our journey towards a sustainable energy future. By leveraging the combined expertise of SOCAR, Masdar, and ACWA Power, we aim to unlock the vast offshore wind potential of the Caspian Sea, supporting Azerbaijan’s energy transition targets.“These projects not only reflect our dedication to clean energy but also to economic growth and environmental stewardship for future generations,” added Rovshan Najaf, President of SOCAR.

• Global Offshore Wind Stumbles to the End of '24

  Soaring costs, project delays and limited investment put targets out of reachAfter a year of canceled projects, broken turbines, and abandoned lease sales, the global offshore wind industry no longer has much chance to hit the lofty targets set by governments in the U.S., Europe and elsewhere ... with the exception of China.Reuters spoke to 12 offshore wind companies, industry researchers, trade associations, and government officials in six countries to come up with a global picture of the state of the industry and its outlook, and found soaring costs, project delays and limited supply chain investment were hobbling installations."We're pretty far away from these targets," Soren Lassen, head of offshore wind research at energy research firm Wood Mackenzie, said in an interview. He said offshore wind farms now have a global average cost of $230 per megawatt-hour (MWh) – up 30% to 40% in the past two years and more than triple the average of $75/MWh for onshore facilities.That has companies retreating. BP last month said it was considering selling a stake in its offshore wind business, and Equinor earlier this year abandoned investments in Vietnam, Spain and Portugal. Meanwhile GE Vernova one of the industry's top turbine suppliers, is not taking new orders."We do not foresee adding to (our) backlog without substantially different industry economics than what we see in the marketplace today," GE Vernova CEO Scott Strazik said on a recent investor call.World governments had set a global target last year of tripling overall renewable energy use by 2030, something the International Renewable Energy Agency (IRENA) said would require offshore wind capacity to surge to 494 GW by the end of this decade, from 73 GW currently.IRENA Director-General Francesco La Camera told Reuters offshore wind is now projected to fall short of its target by a third. Estimates by three other prominent research firms project that the world will not reach 500 GW of offshore wind installations until after 2035.Copyright Alexander/AdobeStockTHE TRUMP EFFECTGovernments in Europe, the Americas and Asia have sought to prop up the sector with national targets aimed at attracting deep-pocketed developers including major global energy companies Equinor, Orsted, RWE and Iberdrola.The United States, for example, set a goal in 2021 of 30 gigawatts of offshore wind by the end of this decade, but had less than 200 megawatts operating as of May of this year, according to the National Renewable Energy Laboratory.The outgoing administration of U.S. President Joe Biden issued permits for 15 GW of projects, held six lease sales on multiple coasts, and extended tax credits to the industry.But U.S. offshore wind has been roiled since last year by canceled projects and contracts, suspended government auctions, and a high-profile construction accident at the country's first major commercial project.The industry is now worried that President-elect Donald Trump, will follow through on an election campaign promise to dismantle the industry's progress, possibly by withholding lease auctions. "Given the results of the U.S. elections, we see higher risks than before for the timely implementation of offshore wind projects there," Michael Mueller, finance chief of German offshore project developer RWE, told journalists on an earnings call this month.Energy research firm Rystad said it expects the United States to reach less than half of its 2030 target.Representatives of the Biden administration and Trump's transition team did not provide comment for this story.Carl Fleming, a partner at law firm McDermott Will & Emery who advises the White House on renewable energy policy, told Reuters the U.S. would struggle to miss its target regardless of who is in the White House, given market conditions.Image courtesy WindEuropeEUROPE ALSO FALLS SHORTIn Europe, Petra Manuel, offshore wind analyst at Rystad, expects countries with the highest offshore wind targets - the United Kingdom, Germany and the Netherlands - to reach about 60% to 70% of their goals. Nations with less ambitious targets, including Belgium, Denmark and Ireland, are also expected to come up short, he said.Industry trade group WindEurope, meanwhile, said it expects the European Union to have 54 GW of offshore wind capacity by 2030, about half of the 120 GW North Sea countries pledged.EU Energy Commissioner Kadri Simson told Reuters that delays in meeting targets could not be ruled out, but that none had been formally flagged by member states.Britain, the second-biggest offshore wind market after China, will also miss its goal of 60 GW by 2030, said Damien Zachlod, managing director of offshore wind developer EnBW Generation UK.The UK held its best-funded auction yet in September, adding 4.9 GW of new agreements. But future auctions will require far larger volumes to reach 60 GW on time, he said."It will be very, very challenging and we won't hit the target by 2030," he said.A spokesperson for the UK government did not immediately provide comment.Copyright somartin/AdobeStock& THEN THERE'S CHINAChina, which became the global leader in offshore wind in 2022, is bucking the global trend [though it is a closed market].Beijing has supercharged its industry with subsidies and low financing costs. Most of the sector's players are state-owned, and have access to locally-made offshore wind components.China accounted for more than half of 2023 offshore wind installations, with 6.3 GW, and the Global Wind Energy council trade group estimates the country will install 11 to 16 GW annually in the next two to three years.Sourcing cheap equipment from China would help reduce costs for developers in Europe, Japan and the United States, but governments there have sought to encourage local production to reduce reliance on Beijing.Elsewhere in Asia, nations including Vietnam, Japan, South Korea and Taiwan have sought to expand offshore wind but also face difficulties linked to soaring costs and regulatory uncertainty.Japan, for example, has set ambitions of building up to 45 GW of offshore wind capacity by 2040, up from less than 1 GW today. But the nation's auctions to date have been small, and the industry is constrained by laws preventing non-Japanese vessels from operating in offshore wind areas.Rebecca Williams, deputy CEO of the Global Wind Energy Council trade group, acknowledged there is a risk the industry could miss its targets, but said hitting them is still possible with the right policies."Of course, whenever there's a target, there's a risk that that target might not be met," Williams said on the sidelines of the COP29 conference in Baku."But the target is not the thing that's going to get the turbines in the water."(Reuters)

• Why EU farmers are upset about Mercosur deal

  A trade contract in between the European Union and Mercosur countries, which includes a. significant area on farming, has triggered demonstrations from. EU farmers who argue farm imports from South America do not meet. European requirements. The agreement dating from 2019 and published on the. Commission website has yet to be embraced. It includes the. facility of import quotas of specific farming products. from Mercosur nations, including Argentina, Brazil, Paraguay. and Uruguay, either duty complimentary or at lowered levy. The agreement would also give EU farmers increased access to. South American markets which could enhance exports of products. such as red wine, cheese, milk powder and olive oil. Below are the primary EU import quotas included in the. contract, most of which to be phased in over 6 years, their. share of the EU market and possible effect based on a study of. the European Commission's joint research center (JRC). BEEF Under the arrangement, the EU will allow 99,000 metric tons of. beef, consisting of 55% of fresh, high quality beef, and 45% of. frozen beef, to be phased-in over 5 years, with a 7.5%. duty. This represents 1.2% of the general EU beef usage of 8. million heaps per year. The EU currently imports about 200,000 tons of beef every. year from Mercosur nations. That total consists of the so-called Hilton quota which enables. Brazil and Argentina to each export as much as 10,000 tonnes of beef,. and 29,500 tonnes of prime beef cuts to the EU each year. The. present 20% task on that quota is due to be removed. The beef trade deficit with Mercosur nations would rise to. 1.4 billion euros by 2032 from 1.0 billion in 2023, the JRC. stated. POULTRY The open market contract would permit duty-free imports of. 180,000 lots of poultry meat each year from Mercosur countries. This represents 1.4 % of total EU poultry consumption of. 12.6 million tons anticipated in 2024, EU information revealed. The four Mercosur nations together are already the EU's. leading suppliers of chicken meat. When taken individually, Brazil. - the world's biggest poultry manufacturer - is number one, followed. by Ukraine. The extra 180,000 heaps represent a 20% boost in. total quota volumes, which would bring the share of imports in. EU intake of poultry meat to 10%, French poultry producers. stated. The poultry trade deficit with Mercosur countries would rise. to about 865 million euros by 2032 from 600 million in 2023, the. JRC said. SUGAR Under the contract, Brazil will see the tariff gotten rid of on. the existing quota for 180,000 tons of sugar for refining. Paraguay would be approved a brand-new duty-free quota of 10,000. heaps. The concurred quantities cover a volume accounting for 1% of EU. sugar usage, which is expected at 17.7 million lots in. 2024, versus a production of 16.6 million tons, EU information revealed. The sugar trade deficit with Mercosur countries would rise. to about 330 million euros by 2032 from 223 million in 2023, the. JRC said. ETHANOL Mercosur countries would be granted two different. tariff-rate quotas for an overall of 650,000 heaps, or 8.2 million. hectolitres. The first one, of 450,000 heaps, would be duty-free for. biochemical uses while the second, of 200,000 tons would be at a. reduced levy and for all usages, including fuel. The total represents approximately 15% of EU production. MAIZE Quota of 1,000,000 tons of duty-free maize and sorghum. imports from Mercosur countries to be phased in over five years. Nevertheless, the quota would not change the current scenario. since maize imports are currently task free. It would just make a. difference if world costs were to collapse, triggering. automated import duties on other imports. Brazil was the second-largest maize supplier to the EU after. Ukraine, with 2.9 million tonnes imported in the EU last season. SOYBEAN PRODUCTS The agreement will also decrease or get rid of duties that. Mercosur countries currently impose on exports to the EU of. products such as soybean products to be used in animal feed. Mercosur is currently the largest soybean and soybean product. supplier of the EU.

• Indonesia to review palm oil export levies, policy might not change

  Indonesia is wanting to evaluate the way it sets palm oil export levies to maintain competitiveness versus rival edible oils, an official stated on Monday, describing it as a regular move to evaluate its trade policy. Malaysian palm oil futures last week increased as traders prepared for a possible change in Indonesia's export levy or tax structure, though rates fell in early trade Monday, tracking weakness in rival Dalian oils and pressed by a strong ringgit. Indonesia, the world's greatest palm oil exporter, last revised its levies in September this year. We must evaluate export levies routinely to increase the welfare of farmers and keep its competitiveness at the international level, stated Dida Gardera, who handles food and agribusiness at the coordinating ministry of financial affairs. Dida was responding to a concern from press reporters about a. possible policy review during a palm oil conference. Dida said authorities will examine policy every. three-to-six months, stressing they may decide to keep policy. unchanged. Indonesia sets palm oil export tax and levy rates monthly. based on a government-determined benchmark price for the edible. oil.

• British Organization - Nov. 21

  The following are the top stories on business pages of British papers. Reuters has not validated these stories and does not vouch for their accuracy. The Times - Another 800 jobs are being cut at Ford, which represents 15% of the remaining individuals the business uses in the UK, simply 18 months after the company cut one fifth of its UK labor force. - Abu Dhabi-backed RedBird IMI is thinking about offering financial support for a sale of The Telegraph papers to New York business owner Dovid Efune as he struggles to secure support for a quote. The Guardian - Owner of the British home entertainment retailer HMV Doug Putman stated the UK budget plan was bad news in basic and most sellers would be on a time out in their growth strategies and anticipates job cuts as a result of cost increases. - Asset supervisor BlackRock deals with a problem at the Organization for Economic Co-operation and Advancement (OECD). for supposedly contributing to ecological and human rights. abuses around the world through its financial investments in agribusiness. The Telegraph. - British nuclear combination company Tokamak Energy has actually raised. nearly 100 million pounds ($ 126.55 million) and recommended it. might have a pilot plant running within a decade. - Reporters at The Guardian are to stage a strike for 4. days next month as anger grows over the organized sale of The. Observer to Tortoise, which is run by the previous BBC News manager. James Harding. Sky News. - The personal equity company Cinven remains in advanced speak with purchase a. major stake in Grant Thornton UK in an offer that would rank amongst. the most substantial ever struck in Britain's audit sector. - UK's energy provider E.ON Next has actually paid out 14.5 million. pounds after a series of billing failures, with each recipient. getting an average of 144 pounds. The Independent. - UK's Defence Secretary John Healey has actually announced emergency situation. cuts to the UK military, consisting of the Royal Navy's two. amphibious attack ships, a frigate and 31 helicopters.

• Base metals largely greater on soft dollar, Trump tariff hazard caps gain

  Base metals prices were largely higher on Thursday in the middle of a softer dollar, however gains were minimal as market individuals awaited more hints on prospective U.S. tariff policies. Three-month copper on the London Metal Exchange (LME). increased 0.4% to $9,121.50 per metric load by 0224 GMT, while. the most-traded December copper agreement on the Shanghai Futures. Exchange (SHFE) advanced 0.1% to 74,470 yuan. ($ 10,284.78) a lot. A softer dollar index on Thursday made greenback-priced. metals cheaper to holders of other currencies, but the cost. gains were silenced amidst worries that physical metals need would. be harmed by U.S. President-elect Donald Trump's tariff policies. A Reuters survey of financial experts revealed the United States could. enforce almost 40% tariffs on imports from China early next year,. possibly slicing development worldwide's second-biggest economy. by approximately 1 percentage point. As markets await news from the Trump administration. regarding potential tariffs on China next year, liquidity will. likely stay subdued into the year-end, stated Sucden Financial. analyst Daria Efanova in a note. LME nickel increased 0.7% to $16,010 a load, zinc. edged up 0.2% at $2,992, tin was up 0.6% at. $ 29,185 while aluminium reduced 0.3% to $2,637.50 and lead. declined 0.1% to $2,019. SHFE nickel climbed up 1% to 127,300 yuan a heap, zinc. increased 1% to 25,190 yuan, lead edged up 0.1% at. 16,875 yuan, tin increased 0.2% to 242,990 yuan while. aluminium alleviated 0.3% to 20,635 yuan. The international lead market deficit increased to 32,400 metric tons in. September from 16,200 heaps in August, and the zinc market. deficit edged down to 79,500 metric heaps in September from. 85,000 tons in August, International Lead and Zinc Study Hall. data showed. For the leading stories in metals and other news, click. or

• Iron ore at over one-week high as traders weigh resilient demand against high portside stocks

  Iron ore futures costs reached a morethanoneweek high up on Thursday as financiers and traders weighed firm nearterm demand versus high portside stocks while awaiting brand-new instructions on outlook from leading customer China. The most-traded January iron ore agreement on China's Dalian Product Exchange (DCE) traded 0.45% greater at 778 yuan ($ 107.45) a metric load, as of 0243 GMT. It hit 782 yuan previously, its highest because Nov. 8. The benchmark December iron ore on the Singapore Exchange was 0.86% higher at $101.9 a ton, since 0233 GMT. It touched the highest level considering that Nov. 11 at $102 earlier. Ore costs discovered some support from durable demand, with hot metal output hovering reasonably high. However the upside space was restricted by increasing portside stocks because of more arrivals of seaborne cargoes, stated Zhuo Guiqiu, an expert at Jinrui Futures. We anticipated costs to be rangebound in the short term. The output of hot metal, which is a blast furnace item, is typically utilized to gauge iron ore need. China will set the tone for the country's financial development at a conference in December and, so, in the short-term, the marketplace will offer more weight to the macro financial elements, experts at Huatai Futures said in a note, referring to the expectation of more stimulus next month. Other steelmaking components on the DCE advanced, with coking coal and coke up 0.51% and 0.13%,. respectively. Steel benchmarks on the Shanghai Futures Exchange gained. ground. Rebar rose 0.39%, hot-rolled coil. added 0.2%, and stainless-steel ticked up 0.3%.

• Asian stocks reduce as Nvidia's forecast moistens danger hunger

  Asian equities fell on Thursday after AI darling Nvidia dissatisfied financiers with a subdued revenue projection, while the dollar firmed and bitcoin struck a record high in anticipation of U.S. Presidentelect Donald Trump's proposed policies. Prevailing geopolitical issues following the intensifying conflict in Ukraine earlier this week led safe-haven properties greater, including gold and federal government bonds. The spotlight though was on revenues from the world's most important company Nvidia, which projected its slowest revenue growth in seven quarters, sending its shares lower. Nasdaq futures slipped 0.47%, while S&P 500 futures alleviated 0.3%. MSCI's broadest index of Asia-Pacific shares outside Japan reduced 0.23%, with tech heavy Taiwan stocks down 0.5%. Japan's Nikkei fell 0.7%. George Boubouras, head of research study at Melbourne-based K2 Asset Management, said the marketplace reaction to Nvidia's revenues was partially an outcome of extremely high expectations for each quarterly result. While they provided impressive profits growth and momentum, the market plainly desires more. Charu Chanana, primary investment strategist at Saxo, stated Nvidia earnings were a clear indication that the momentum in AI was only extending, with supplies being the larger headwind instead of demand. The structural AI tailwind could continue to be a secret chauffeur for equities into the next year. Elsewhere in Asia, stocks in China opened a shade lower, while Hong Kong's Hang Seng fell 0.22% at the open as the marketplace stays rangebound even as some international funds follow domestic cash into market segments protected from tariffs. Financier focus will also be on Indian conglomerate Adani Group after U.S. prosecutors stated on Wednesday that Gautam Adani, billionaire chair of the group, has actually been arraigned in New York over his role in an alleged multibillion-dollar bribery and scams scheme. Dollar bond prices for Adani companies fell dramatically in early Asia trade on Thursday. SKYROCKETING DOLLAR The dollar has been on the rise since the U.S. election in early November on anticipation that proposed tariffs of the inbound Trump administration will likely be inflationary and keep rates higher for longer. The dollar index, which determines the U.S. currency versus 6 competitors, was at 106.56, not far from the 1 year high of 107.07 it touched last week. The index has risen more than 2% given that the Nov. 5 election. The possibility of the Federal Reserve having to temper its rate cut cycle has actually also improved the dollar. Markets were pricing in the Fed decreasing borrowing expenses by 25 basis points next month at 56%, down from 82.5% just a week back, according to CME's FedWatch Tool. Two Federal Reserve guvs on Wednesday laid out competing visions of where U.S. monetary policy might be heading, with one mentioning continuous concerns about inflation and another expressing self-confidence that cost pressures will continue to ease. The increase in the dollar has led the Japanese yen back into intervention territory, causing spoken warnings from officials. On Thursday, the Asian currency enhanced a bit and was last at 155.04 per dollar. Bitcoin has actually been on a tear given that the election as the Trump administration are anticipated to relax guidelines and be crypto friendly. The world's largest cryptocurrency, bitcoin, soared to touch a record of $95,040 in early trading and was last at $94,787. In products, supply concerns triggered by escalating geopolitical tensions amidst the continuous war between Russia and Ukraine led oil costs higher. Brent unrefined futures for January rose 0.5% to $73.17,. while U.S. West Texas Intermediate crude futures for January. acquired 0.5%, at $69.11. Gold costs were on the increase for fourth straight session on. safe property needs. Area gold rose 0.15% at $2.654 per. ounce.

• Financial Times - Nov 21

  The following are the leading stories in the Financial Times. Reuters has actually not confirmed these stories and does not vouch for their accuracy. Headlines - UK ministers resist cars and truck market pressure to reduce fines on EV sales targets - UK cuts fines for boilermakers in climbdown on heat pump sales - Grant Thornton UK picks personal equity over US merger - Unilever shelves prepared sale of its ice cream service to private equity Summary - The UK government looks set to reject pleas from electrical carmakers to spare them from paying fines till 2026 if they fail to meet targets and deadlines to offer EV's to the British market. - The UK federal government is set to cut the level of prepared fines for boilermakers who fail to sell adequate heatpump, in a. climbdown that follows heavy pushback from industry, with the. prepared charges, due to be presented in April next year, will. be cut from 3,000 pounds ($ 3,795.90) to 500 pounds for every single heat. pump sale short of official targets. - Grant Thornton UK, the country's sixth largest accounting. firm by profits, has actually consented to sell a stake to the buyout group. Cinven, beating rival deals from other personal equity groups. including Sweden's EQT, and from Grant Thornton's. sibling firm in the U.S., which had proposed a transatlantic. merger. - Unilever has shelved plans to run a sales procedure. intended to discover a private equity purchaser for its 15 billion euro.

• RPT-Sinochem might keep insolvent refineries as auctions draw little interest, sources say

  Sinochem Group might keep 3 insolvent oil refineries situated in eastern China after auctions to offer them drew little interest from other business, sources acquainted with the matter said. The lack of interest in the plants shows the woeful state of the refining sector in China, the world's greatest oil importer and second-largest consumer. Beset by flagging fuel need amid slower financial growth that has actually worn down margins, the country's plants are processing less crude than the year before. The Sinochem plants, which are smaller, older and less advanced refineries known as teapots, are also contending with greater regulatory analysis that threatens the survival of other companies in Shandong province, where most of the teapot plants lie. Failure to offer the refineries throughout their person auctions might suggest state-owned Sinochem will retain them by jotting down financial obligations to lenders and renegotiating taxes owed, according to 2 sources knowledgeable about Sinochem's thinking. Sinochem declined to comment. The exact quantity of the debt could not immediately be ascertained, but tax administration records for the cities in Shandong where the refineries lie program that by mid-2024 the plants had actually accumulated combined overdue intake taxes of about 13.2 billion yuan ($ 1.82 billion). The plants, Changyi Petrochemical, Huaxing Petrochemical Group and Zhenghe Group Co, have actually integrated unrefined processing capability of 380,000 barrels each day, or 3% of nationwide output, and were set up for auction in October through the government-backed Shandong Home Right Exchange Centre. Huaxing was provided at 8.7 billion yuan, Changyi at 6.4 billion yuan and Zhenghe for 6.3 billion yuan, data on the Centre's website revealed. Sinochem, which independently runs a refinery and petrochemical complex in the southeastern province of Fujian, inherited the distressed Shandong refineries in a Beijing-orchestrated merger in 2021 with their previous operator, state-owned ChemChina. The auctions followed local court orders in September stating all 3 business insolvent after reorganization treatments were cancelled. Files on the Centre's site show that the plants do not have petroleum import quotas which a brand-new owner would need to re-apply for all operating licenses. That would be a deterrent to prospective buyers, stated a number of sources at other independent refiners operating in Shandong. Without unrefined import quotas, the plants should rely on processing imported fuel oil, a more expensive feedstock because of tariffs and the intake tax, the sources stated. Unlike rival independent refiners in Shandong, Sinochem's plants have shunned discounted crude from Russia, Iran and Venezuela due to the fact that of Western sanctions, putting them at a competitive drawback. Taking apart the plants is an unlikely alternative that might imply the loss of countless jobs, something social stability-obsessed local authorities would watch out for, stated the two sources knowledgeable about Sinochem's thinking. Sinochem stopped operations at Zhenghe and Changyi in mid-2024 as high petroleum expenses and weak fuel demand minimized margins. The 3rd plant, Huaxing Petrochemical, was closed in recent weeks, according to regional consultancy Sublime China Information. In late 2021, the Shandong government purchased the 3 plants to self-rectify any irregular fuel tax practices, part of a nationwide clampdown on independent refiners associated with quota use and tax payments.