China’s power firm revamps natural gas business post solar spin-off
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GCL Holdings, a privately owned Chinese energy company, is shifting its focus to developing a natural gas business. According to company executives interviewed by Reuters, it’s selling off many solar installations to invest in gas import capabilities and trading operations.
If their plans succeed, GCL will join other mid-sized liquefied natural gas (LNG) players in China, like ENN and Beijing Gas Group, aiming to increase imports of this fuel alongside major state-owned companies to meet the rising energy demand in the world’s largest energy-consuming nation.
GCL’s move back to gas comes when global LNG prices have dropped to their lowest levels in nearly three years due to increased supply. Additionally, demand is expected to grow in China, which regained its position as the world’s leading LNG buyer last year.
The company’s Hong Kong-listed unit, GCL New Energy Holdings, recently hired Xiong Xin, previously a vice president at ENN Natural Gas, to head its gas trading division.
According to company executives speaking to Reuters, Xiong Xin will lead a team based in Beijing that is projected to expand to about 20 employees by the end of the year.
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“The spin-off of the heavy solar downstream assets has enabled the group’s strategic shift back to the gas business,” said Xu, previously a vice president at state-run Sinochem Oil, who joined GCL last June.
Xu Huilin, Executive President of GCL New Energy, mentioned that Xiong, who initially entered the LNG sector with the state major CNOOC, will soon lead a new gas trading branch in Singapore with around five staff.
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