Plans for LNG Terminals a Boon for Kitimat
The northwest British Columbia town cited by Census Canada in March 2007 as the community with the greatest population decline in Canada now is looking at multi-billion-dollar investments in proposed liquefied natural gas projects, aluminum smelter upgrades and the Northern Gateway pipeline.
Once posting a rental vacancy rate of 44.5 per cent, Kitimat now is brimming with construction jobs, fighting traffic jams and worrying about rising rents, said Monaghan.
Monaghan, elected to Kitimat’s council for the past 38 years, says residents are pinching themselves and wondering if it’s all real.
This month’s opening of Kitimat’s first Tim Horton’s outlet confirmed for Monaghan that economic reality hasn’t fully set in among residents.
“When I announced we would have a Tim Horton’s and people would meet me on the street they wouldn’t talk about the LNG, they would say ‘We’re getting a Tim Horton’s,'” said Monaghan.
Now, Monaghan said her council is seriously considering operating a local ferry service to bring aboriginal workers to Kitimat from area coastal villages of Klemtu, Hartley Bay and Bella Bella to work on what will be thousands of construction jobs.
“I honestly felt (four years ago) I was the mayor of doom and now I feel like the mayor of boom,” she said.
After more than a year of hype from the provincial government about a jobs plan focused on LNG development, Monaghan’s community and others are beginning to feel the creeping effects of the flurry of investment in the resource.
Recently, B.C. Premier Christy Clark likened the province’s LNG development opportunities to that of the Alberta oil sands.
Her government’s jobs plan forecasts one LNG export plant in operation by 2015 and three in operation by 2020.
The LNG projects involve building pipelines from northeast B.C.’s natural gas fields to LNG terminals near Kitimat, from where the product will be shipped to Asian markets. LNG is natural gas that is cooled to the point where it can be loaded onto tankers.
Rich Coleman, B.C. minister for energy, mines and natural gas, said the province is in negotiations with at least three LNG development proposals in the Kitimat area.
Two others are proposed for the Prince Rupert area, about 120 kilometres northwest of Kitimat, and billionaire Krishnan Suthanthiran has proposed that Kitsault, a northwest mining ghost town he bought for $7 million in 2005, be used for an LNG export facility.
Two of the five proposed LNG projects highlighted by Coleman have already been granted federal export permits.
– Canadian Press
Taiwan Kinmen Mulls Shipping Water From the Mainland
This is another sign of warming relations despite protests organized by the DPP against President Ma.
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Officials on a Taiwan-controlled island group near the Chinese mainland said Sunday they are considering importing water from China in yet another sign of warming relations.
The move would mark another significant step forward in the improvement of ties, since the fortified Kinmen island group was a flashpoint during the Cold War and was shelled from the mainland at one point.
Officials from Kinmen have discussed a proposal to use ships to transport water from Xiamen, a coastal city in China’s southeastern Fujian province just miles away.
Water supplies, mostly from desalination, underground supplies and a tiny dam, are sufficient at the moment to meet the needs of some 100,000 civilians and of troops stationed there.
“But water supplies may fall short in the near future if more tourists, many of them from the mainland, visit Kinmen,” Chen Chaur-jiung of the Kinmen county government told AFP.
Chinese tourists make hundreds of thousands of visits to Kinmen each year.
From a long-term point of view, the Kinmen government hopes to instal pipes linking the Chinese city and Kinmen, Chen said.
“The idea of buying water from the mainland was hard to imagine a few years ago,” he said.
– AFP
More Capacity for Canadian Beef Exports to China
China has approved four additional Canadian beef facilities that will now be able to export beef to China, Agriculture Minister Gerry Ritz and International Trade Minister Ed Fast announced today. The newly approved establishments will increase the Canadian export capacity for beef in a market estimated by the industry to be worth approximately $20 million annually.
“This important step sets the stage to further trade opportunities in China for our beef producers,” said Minister Ritz. “Our government”s top priority remains the economy, and by expanding markets in dynamic countries like China, we are helping Canadian producers increase their bottom line, which leads to more jobs, prosperity, and economic growth.”
“Today”s announcement is another example of how our government”s commitment to opening new markets is helping increase Canadian exports and delivering real results,” said Minister Fast. “We look forward to continuing to grow our trade relationship with China to ensure it is balanced and produces clear wins for Canadian workers and businesses.”
The following establishments can now export to China: Les Viandes Laroche Inc (Asbestos, Quebec), Ryding Regency Meat Packers Ltd. (Toronto, Ontario), St. Helen”s Meat Packers Limited (Toronto, Ontario), and Canadian Premium Meats Inc. (Lacombe, Alberta).
In June 2011, agreement was reached with China to allow imports of Canadian deboned beef from animals under 30 months of age (UTM), making Canada the first BSE-affected country to resume trade of beef with China. The staged market access approach for Canadian beef products was confirmed under the Cooperative Arrangement announced by Prime Minister Harper in February 2012 during his mission to China.
According to Canada Beef Inc., the Chinese market for Canadian UTM deboned beef is estimated at about $20 million annually, and once full market access is achieved the Chinese market for Canadian beef and cattle is expected to be worth $110 million. China is Canada”s third-largest trading partner, with a two-way trade of over $64.5 billion dollars in 2011, including $3.4 billion in agriculture and agri-food products.
On November 8, 2012, the Government of Canada released the 2011-2012 Agriculture and Agri-Food Market Access Report, which highlights market access accomplishments. These achievements include continued access for Canadian canola to China, a market worth $1.6 billion in 2011.
– Marketwire
China’s Carbon Intensity Falls More Than Targeted
China’s carbon intensity, or its emissions relative to economic output, fell more than 3.5 percent in 2012, outperforming its average annual target, China’s chief climate change official said on Thursday.
China aims to cut carbon intensity by 17 percent during the 2011-2015 period, which means an annual average target of around 3.5 percent. Intensity is the amount of carbon dioxide emitted per unit of gross domestic product.
“The situation last year was relatively good. Based on a preliminary estimate, China could achieve a more than 3.5 percent fall in carbon intensity,” said Su Wei, director general of climate change department of National Development and Reform Commission.
Cutting carbon intensity allows China to meet international demands for it to curb emissions and also keep its priority that development must come first while many Chinese still live in poverty.
The government is currently drawing up a national plan on climate change till 2020, which is expected to be finalized soon, Su said.
China recently published a new industrial carbon emissions plan. Steel, nonferrous metals and petrochemical sectors are required to cut CO2 intensity by 18 percent by 2015 compared with the 2010 level.
By 2020, China aims to cut its carbon intensity by 40 to 45 percent versus the 2005 level, a target that is stimulating a sharp increase in investment demand in energy efficiency and renewable energy.
Its efforts to control emissions are also paving the way for creation of a carbon market, which requires accurate measurements of the carbon emitted.
China’s biggest listed steelmaker, Baoshan Iron and Steel, is among the industrial companies that must participate in a pilot carbon trading scheme in Shanghai, the local government said last month.
China will need 1.24 trillion yuan ($199.2 billion) in energy conservation investments in 2011-2015, an increase of 50 percent from the level in 2006-2010, according to a research report released by Tsinghua University on Thursday.
The investment in China’s renewable energy sector in 2011-2015 will increase 37.5 percent to 1.8 trillion yuan, the report showed.
– Reuters
Beijing’s Heavy Pollution
I have posted on PM 2.5 but the pollution yesterday was absolutely horrible, reaching 900 on the air-quality index in parts of southwest Beijing. That is hazardous to people’s health. The public named pollution as the second most serious concern after food safety. The authorities will have to get a handle on it and hopefully the new government under soon-to-be President Xi Jinping has the wherewithal to deal with polluting vested interests and encourage the legions of car enthusiasts to drive less.
In the Blue Book on Social Mentality (Social Concerns) published by the Chinese Academy of Social Sciences this week, trust in public policy has fallen below the failure mark of 60 from 62+ in 2011, indicating the degree of public indignation.
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Air pollution levels in China’s notoriously dirty capital were at dangerous levels Saturday, with cloudy skies blocking out visibility and warnings issued for people to remain indoors.
Local authorities warned that the severe pollution was likely to continue until Tuesday.
The Beijing Municipal Environmental Monitoring Center has reported air-quality indexes between 176 and 442 from its monitors throughout the greater Beijing area since Friday. The index indicates the level of airborne PM 2.5 particulates, which are tiny particular matters considered the most harmful to health.
Monitors in Beijing reported air quality indexes above 300 on Friday, and the centre’s real-time reports showed Beijing remained heavily polluted Saturday, with the indexes at or approaching 500 at 5 p.m. from some monitoring stations.
A warning scrolled across the monitoring centre’s website on Saturday said that the density of PM2.5 had reached 700 micrograms per cubic meter in many parts of Beijing and that the polluted air was expected to linger for the next three days.
Monitors at the U.S. Embassy in Beijing recorded an off-the-chart air-quality reading of 728 as of 4 p.m. Saturday and said the PM2.5 density had reached 845 micrograms per cubic meter.
Readings are often different in different parts of Beijing.
According to rules issued by the city government in December, all outdoor sports activities are to stop and factories have to reduce their production capacity if Beijing’s official air-quality index exceeds 500.
Air pollution is a major problem in China due to its rapid pace of industrialization, reliance on coal power, explosive growth in car ownership and disregard to environmental laws.
In Beijing, authorities have blamed foggy conditions and a lack of wind for the high concentration of air pollutants.
Several other cities, including Tianjin on the coast east of Beijing and southern China’s Wuhan city, also reported severe pollution over the last several days.
– AP
Chinese Investment in Canadian Iron Ore Expected to Spike
Volatile iron ore prices in 2013 should prompt Chinese firms to continue investing in Canadian development projects, an industry analyst said Wednesday.
Jackie Przybylowski of Desjardins Capital Markets expects investments will continue on “an opportunistic basis” in the coming year, after a very active 2012 when the Chinese bought into projects around the world, including five in Canada.
“Chinese steelmakers’ investment in Canadian iron ore and metallurgical coal development projects is a positive as this provides firms with access to much-needed and hard-to-secure capital,” she wrote in a report.
Late last year, China Steel Corp. in partnership with South Korean steelmaker Posco, acquired a 15 per cent stake in Montreal-based ArcelorMittal Mines Canada for $1.1 billion in cash.
Earlier Chinese investments in Canada included Century Iron Mines’ Sunny Lake project, Northern Star Minerals Ltd., Alderon Iron Ore and Adriana Resources’ Lac Oteinuk project.
Przybylowski said investors are seeking projects with potential for significant longer-term production volumes and will generally invest in projects at an early stage. He said Chinese steel firms will continue to secure long-term ore supply and manage input costs in the face of continued volatility of iron ore prices this year.
– Canadian Press
Wuhan to Replace Tokyo As Venue for the Pan Pacific Tennis Open
A sign of the times and a big blow for Japan whose international stature and attractiveness is declining by the year.
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The hometown of China’s former French Open champion Li Na was on Wednesday named as the host of a new $2 million tournament in 2014 which will replace the 30-year-old Pan Pacific Open in Tokyo.
Wuhan will stage the event in the week prior to the China Open in Beijing and will feature at least seven of the year-end top 10-ranked players.
The deal is a huge blow for Tokyo where the Pan Pacific will stage its 30th and final event later this year.
Kuala Lumpur’s event will be relocated to Hong Kong two weeks before the Wuhan tournament in 2014.
“We are excited by the growth of women’s professional tennis, particularly in key markets like China and Brazil,” said Stacey Allaster, the chief executive of the WTA.
“Development in the BRIC (Brazil, Russia, India, China) markets, led by China, has been a strategic priority for the past several years. We look forward to continued strengthening of our global brand, developing our sport, and building our fan base worldwide.”
With the addition of Shenzhen in 2013, and Hong Kong and Wuhan in 2014, there will be a record 16 tournaments within the Asia-Pacific region in 2013, and 18 events are scheduled for 2014.
The WTA also announced on Wednesday that prize money in 2013 will increase 10 percent overall from $53.3 million in 2012 to $58.7 million this year (not including the Grand Slams).
– AFP
HSBC Chief Economist: The “Great Rotation” to China
China will have a bigger influence than the U.S. or Europe over the economies of developing nations as the world’s biggest exporter increases its contribution to global growth, according to HSBC Holdings Plc. (HSBA)
“We are moving away from a U.S.- or Europe-led world to a world led by China,” Stephen King, HSBC’s chief economist, wrote in an Emerging Markets Index report published today. “China will make its biggest-ever contribution to global growth in 2014,” King said, in what he termed a “great rotation.”
China’s economic growth is set to accelerate to 8.6 percent this year, from 7.8 percent in 2012, King said, a rate of growth that will benefit neighboring countries and commodities-rich nations. China’s expansion compares with a 5.4 percent growth forecast for the emerging world as a whole, according to HSBC.
Exports to China currently account for 12 percent of South Korea’s gross domestic product, up from 3.5 percent in 2000. Malaysia, Singapore, Australia, Chile, Kazakhstan and Saudi Arabia have also increased their exports to China while exports by the U.S. and the U.K. to the Asian country represent less than 1 percent of their respective GDPs.
“Global economies, particularly emerging markets, are driven more and more by the new world, which is exemplified by Chinese strength and contribution to global growth,” Murat Ulgen, HSBC’s chief economist for central and eastern Europe and sub-Saharan Africa said by phone.
While China’s expected growth rate this year is not as high as the 10 or 11 percent levels seen in the past, “China is now a much larger economy and because of that, Chinese contribution to global growth is much bigger,” Ulgen said.
– Bloomberg
China Tops World in Patent Applications
The Economist is right; the simple fact that China has surpassed the US in number of patent applications, it does not necessarily attest to the quality of those applications. China has a long way to go in truly path breaking innovation.
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CAS: China to Overtake US by 2019
Most predictions of when China overtakes the US in terms of gross GDP are produced by Western and multilateral institutions. This one, the Nation’s Health Report, however, is by the Chinese Academy of Sciences (CAS) which is usually hesitant about making such projections. Perhaps a bit optimistic. More likely early to mid 2020s.
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CHINA will overtake the United States economically within six years and go on to become the world’s most important country in three decades more, an official research institute predicts.
The findings came from the Nation’s Health Report issued by the Chinese Academy of Sciences, the Global Times said, without giving details of the criteria used for the prediction.
China’s economy would be larger than that of the US by 2019, it cited the document as saying, and China’s “international status” would exceed that of the US by 2049, the 100th anniversary of the founding of the People’s Republic.
“National health” was defined as a country’s “overall conditions … using resource sufficiency and wealth distribution as the major criteria”, the Global Times said, but did not go into specifics.
China ranked as the 11th “healthiest” country out of some 100 nations, it said, just behind Costa Rica, with Sweden in top position.
The official Xinhua news agency said China was given a national health status of “up to standard”, though the US, Japan and Britain were deemed “health deficient”.
– news.com.au