Suez Led China CNOOC to Open China's LNG Direct Marketing

On October 9, China National Offshore Oil Corporation, a subsidiary of China National Offshore Oil Corporation, and GDF SUEZ of France held a signing ceremony for LNG purchase and sales contracts in Shanghai. According to the contract, Suez Energy will sell approximately 2.6 million tons of LNG to China National Offshore Gas & Power Group for four years from 2013.

Hou Yuxuan, researcher of China Investment Advisor Environmental Protection Industry Co., Ltd. pointed out that as the world's leading LNG company, Suez can have strong strength in the entire LNG field. With the further expansion of low-carbon economy and energy-saving emission reduction, the entire Asian region has shown a strong low The economic growth momentum of carbon has led to the strategic deployment and adjustment of major industries. The cooperation between CNOOC and Suez Energy is exactly in line with the future development of the two major groups.

As early as September 2009, Suez Energy and Chongqing Gas had established a joint venture company to engage in energy supply projects in Chongqing. According to Suez's marketing model in the Chinese market, the establishment of a joint venture company base will be the next step for Suez to open up the Chinese energy market. The first-tier cities in Shanghai and Tianjin will undoubtedly be the bases first attacked by Suez, and this time with CNOOC’s Cooperation has undoubtedly written a icing on the cake for its expansion in the Chinese energy sector.

Suez Environment is the pioneer of Suez Energy on the Chinese battlefield and is the first foreign-funded public utility company to enter the Chinese water market. With superior technology and rich experience, the Suez Environment has occupied a considerable proportion in the Chinese public utilities market. In water, solid waste and energy, these advantages will greatly reduce the obstacles that Suez Energy can expand in the energy sector.

According to the "2010-2015 China Environmental Protection Industry Investment Analysis and Prospect Forecast Report" released by the China Investment Advisor, it shows that Suez Ring Energy's operating income in China reached 869 million euros in 2009, making it the world's largest "utility" company 799 The proportion of billions of euros in revenue is not large. Its mature business activities mainly focus on water treatment, waste treatment and electric energy. In its 50 years of experience in liquefied natural gas, the European market has always been its traditional advantage market. But now, the Asian market will become its key development target.

Zhang Yulin, research director of China Investment Consulting, pointed out that unlike other industries, the monopoly of the energy industry is relatively high and the issue is more sensitive. Therefore, cooperation with energy giants like CNOOC is also an important measure for Suez. On another level, Suez’s ring is able to compete with its energy competitors in the Chinese market. If it is to achieve a breakthrough, how to deal with the competition and cooperation with the energy giants will be a key part of future business expansion.