HARNESSING THE WIND China is doubling its efforts in wind power development in northwest Xinjiang Uygur Autonomous Region. The first phase of the Xinjiang Alataw Shankou Wind Power Plant is scheduled to complete its construction and begin operation by October this year (XINHUA)

Securing LNG

China National Offshore Oil Corp. (CNOOC), the country's largest offshore oil and gas producer, announced on May 13 an agreement with BG Group PLC, an energy giant based in the United Kingdom.

According to the deal, CNOOC will purchase 3.6 million tons of liquefied natural gas (LNG) annually for 20 years from the Queensland Curtis LNG Project in Australia, which is currently under construction by BG Group. With an annual capacity of 7.4 million tons, the project is set to begin operation by 2014.

Auto Venture

China's First Automobile Works Group Corp. (FAW) and Europe's auto giant Volkswagen Group recently announced plans to build a 5-billion-yuan ($735.3 million) auto plant in Chengdu, capital city of Sichuan Province. FAW is a major automaker based in Changchun, capital of Jilin Province, according to a report by the Xinhua News Agency.

The venture is expected to produce 150,000 Volkswagen Jetta vehicles annually, and will serve as an important production base to help achieve Volkswagen's 2-million sales target in China by 2018.

The new investment will also support reconstruction in quake-stricken Sichuan Province, FAW General Manager Xu Jianyi said in a statement.

Closer Ties

The Chinese mainland and Hong Kong inked on May 9 an agreement to grant Hong Kong firms greater access to the mainland securities and banking markets, among others.

As the latest supplement to the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA), the agreement further relaxes authorization requirements for Hong Kong commercial banks to expand their existing network in neighboring Guangdong Province. Qualified securities firms in Hong Kong and the mainland are also allowed to jointly establish securities investment advisory companies in Guangdong.

The agreement is scheduled to come into effect on October 1 this year, three months ahead of the usual schedule for previous supplements, in a bid to help Hong Kong fight off the ongoing economic downturn.

Going Australian

The Australian Treasury on May 8 gave permission to Chinese steel maker Anshan Iron and Steel Group Corp. (Ansteel) for increasing its interest in the Australian iron ore miner Gindalbie Metals Ltd. to no more than 36.28 percent from the current 12.6 percent. The original stake was built up in June 2007.

"My approval under the Foreign Acquisitions and Takeovers Act 1975 is conditional upon Ansteel supporting the wider development of infrastructure in the Mid West (of Australia), and maintaining agreed levels of Australian participation in a green field joint venture in China's Liaoning Province," said Wayne Swan, Australia's Treasurer.

Oil Deal

The China Petroleum & Chemical Corp. (Sinopec) and Kuwait Petroleum International Ltd. recently signed a long-awaited deal to jointly invest $9 billion to build an oil refinery in Guangdong Province, according to a report by the Xinhua News Agency.

The refinery will help Kuwait achieve its goal of exporting 500,000 barrels of crude oil a day to China by 2015, and can also help China secure future oil supplies to fuel its fast-growing economy, said the report.

Sinopec will hold a 50-percent stake in the venture, which is due to begin operation by 2013, while the Kuwaiti company will own 30 percent. The Dow Chemical Co. of the United States and Royal Dutch Shell PLC will each take 10 percent.