China Energy Investment Signs MOU For $83.7B In West Virginia Projects

China Energy Investment Signs MOU For $83.7B In West Virginia Projects
The agreement was the biggest among a slew of deals signed during US President Donald Trump's state visit to Beijing.

Reuters

BEIJING, Nov 9 (Reuters) - China Energy Investment Corp, the world's largest power company by asset value, has signed a memorandum of understanding (MOU) to invest $83.7 billion in shale gas, power and chemical projects in West Virginia, the U.S state said on Thursday.

The agreement was the biggest among a slew of deals signed during U.S. President Donald Trump's state visit to Beijing. The total value of the deals done during Trump's trip could be as much as $250 billion.

The gas and power agreement marks the first overseas investment for newly founded China Energy, which formed from a merger of China Shenhua Group, the country's largest coal producer and China Guodian Corp, one of its top five utilities.

Beijing is supporting and encouraging its power companies to expand globally, and the agreement underscores China Energy's ambition to diversify into natural gas and the refining sector.

The touted investment would extend over a 20-year period, covering projects for power generation, chemical manufacturing and the underground storage of liquefied natural gas (LNG), West Virginia's Department of Commerce said in its announcement.

The deals will likely help create jobs in West Virginia and lift its economy.

West Virginia's gross domestic product declined 0.9 percent in 2016, reversing growth seen in 2015, according to the Bureau of Economic Analysis at the U.S. Department of Commerce.

"From driving growth and creating jobs to maximizing America's energy potential, the benefits for West Virginia and the country from this new investment will be significant," said U.S. Senator Shelley Moore Capito, West Virginia, according to the statement from the state's Department of Commerce.

With an estimated 326,00 staff, China Energy has a workforce almost four times bigger than the entire U.S. coal-fired power industry for 2016.

The Chinese energy conglomerate has an installed capacity that tops 225 gigawatts, eclipsing major international rivals EDF and Enel.

China Shenhua Energy jumped 7.4 percent on the announcement to close at 22.05 yuan per share on Thursday.

(Reporting by Meng Meng and Josephine Mason; Editing by Joseph Radford and Tom Hogue)



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tony moore  |  November 10, 2017
All nations are super large business units and as such need to be run as efficient corporations. Politics should take second place and sound business strategies should be used to generate opportunities to create national wealth and prosperity for all of its citizens. As an astute businessman, Donald Trump operates his presidential role in this manner. Well done Donald-keep up the good work.
Scott Weeden  |  November 09, 2017
How does one store LNG underground? Do you mean below ground LNG storage tanks? You can't store LNG in underground caverns. Why would you liquefy gas in West Virginia? You would have to regasify it to get it to market. That is weird. I don't believe the state Department of Commerce has any idea how the LNG process and business work.


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