BG eyes sale of Queensland LNG stake -sources
SYDNEY, March 7 (Reuters) – By Narayanan Somasundaram and Tom Bergin
SYDNEY/LONDON, March 6 (Reuters) – UK gas producer BG Group is mulling the sale of a stake in its multi-billion dollar Queensland natural gas liquefaction facilities, sources close to the matter said, potentially paving the way for a restructuring of the region’s LNG business.
BG could sell between 15 and 20 percent of the Queensland Curtis LNG project (QCLNG) and, based on past transactions, could raise up to $2 billion from the sale, one source said.
The cash would be reinvested in more profitable oil and gas exploration and production activities.
BG is one of a number of companies including Santos, Origin Energy and a joint venture between Royal Dutch Shell and and PetroChina, which are developing plans to build LNG plants around Gladstone in Queensland.
The companies have bought huge swathes of land with deep coal seams from which gas can be extracted and frozen into LNG.
BG’s $15 billion Queensland Curtis Island LNG project is the most advanced with an expected start-up in 2014.
Firms look abroad for infrastructure growth
MUMBAI (Reuters) – Indian infrastructure firms are circling coal assets overseas to fire up planned power plants in India as they look to benefit from the energy-hungry nation’s aim to halve its near 14 percent power deficit within two years.
Companies in the sector such as Hindustan Construction Co (HCC)(HCNS.BO: Quote, Profile, Research) are also looking at acquisitions in other sectors such as transmission towers or oil and gas pipelines to take on larger infrastructure projects in the fast-growing Indian market.
HCC is exploring acquisitions in Europe, the Middle East and South East Asia, the firm’s chief financial officer told the Reuters Indian Investment Summit on Tuesday.
GVK Power and Infrastructure(GVKP.BO: Quote, Profile, Research) and Lanco Infratech(LAIN.BO: Quote, Profile, Research) are scouting for coal assets in Indonesia, Australia and Africa, top executives from the companies said at the summit.
“We are scouting around for (coal) assets. It’s on the top of our mind,” GVK Vice Chairman G.V. Sanjay Reddy said at the summit. “We are looking for as much coal as we can get.”
India’s power shortages, clogged and potholed roads and creaking railway network are seen as a significant brake on growth in Asia’s third-largest economy, which aims to invest $1.5 trillion from 2007-17 to overhaul its infrastructure.
For a graphic on the performance of the Indian Infra sector vs the benchmark stock index, click r.reuters.com/cyn35p
India firms look abroad for infra growth
MUMBAI (Reuters) – Indian infrastructure firms are circling coal assets overseas to fire up planned power plants in India as they look to benefit from the energy-hungry nation’s aim to halve its near 14 percent power deficit within two years.
Companies in the sector such as Hindustan Construction Co (HCC) (HCNS.BO: Quote, Profile, Research, Stock Buzz) are also looking at acquisitions in other sectors such as transmission towers or oil and gas pipelines to take on larger infrastructure projects in the fast-growing Indian market.
HCC is exploring acquisitions in Europe, the Middle East and South East Asia, the firm’s chief financial officer told the Reuters Indian Investment Summit on Tuesday.
GVK Power and Infrastructure (GVKP.BO: Quote, Profile, Research, Stock Buzz) and Lanco Infratech (LAIN.BO: Quote, Profile, Research, Stock Buzz) are scouting for coal assets in Indonesia, Australia and Africa, top executives from the companies said at the summit.
“We are scouting around for (coal) assets. It’s on the top of our mind,” GVK Vice Chairman G.V. Sanjay Reddy said at the summit. “We are looking for as much coal as we can get.
India’s power shortages, clogged and potholed roads and creaking railway network are seen as a significant brake on growth in Asia’s third-largest economy, which aims to invest $1.5 trillion from 2007-17 to overhaul its infrastructure.
India aims to cut its power deficit to 6.5 percent in the fiscal year ending March 2012 from the current 13.8 percent, the head of the Central Electricity Authority told Reuters.
Reuters Summit-WRAPUP 1-India firms look abroad for infra growth
MUMBAI, Sept 28 (Reuters) – Indian infrastructure firms are circling coal assets overseas to fire up planned power plants in India as they look to benefit from the energy-hungry nation’s aim to halve its near 14 percent power deficit within two years.
Companies in the sector such as Hindustan Construction Co (HCC) (HCNS.BO: Quote, Profile, Research) are also looking at acquisitions in other sectors such as transmission towers or oil and gas pipelines to take on larger infrastructure projects in the fast-growing Indian market.
HCC is exploring acquisitions in Europe, the Middle East and South East Asia, the firm’s chief financial officer told the Reuters Indian Investment Summit on Tuesday. [ID:nSGE68R0BG]
GVK Power and Infrastructure (GVKP.BO: Quote, Profile, Research) and Lanco Infratech (LAIN.BO: Quote, Profile, Research) are scouting for coal assets in Indonesia, Australia and Africa, top executives from the companies said at the summit.
“We are scouting around for (coal) assets. It’s on the top of our mind,” GVK Vice Chairman G.V. Sanjay Reddy said at the summit. “We are looking for as much coal as we can get.” [ID:nSGE68R0FL]
India’s power shortages, clogged and potholed roads and creaking railway network are seen as a significant brake on growth in Asia’s third-largest economy, which aims to invest $1.5 trillion from 2007-17 to overhaul its infrastructure. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ ^^ For more from the Reuters India Investment Summit: [ID:nSGE68Q05E] For a graphic on the performance of the Indian Infra sector vs the benchmark stock index, see: r.reuters.com/cyn35p ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ ^^ India aims to cut its power deficit to 6.5 percent in the fiscal year ending March 2012 from the current 13.8 percent, the head of the Central Electricity Authority told Reuters. [ID:nSGE68N0HI]
To achieve that target, more power plants need to be built to boost capacity in the country, but getting sources of energy such as coal to fuel the plants is a hurdle.
A bubble in the real estate market?
Have you tried buying or renting a house in Mumbai recently? If so, then I won’t be surprised if you think real estate prices are plain expensive, and incredibly so. But that’s almost always been the case in India’s commercial capital. After all, when was the last time someone told you they got a cheap house in the city?
So is the real estate market in a bubble? We asked Adi Godrej, the man who controls Godrej Properties, if things could get bubblicious. This is what he had to say: “I don’t think we are in a bubble, because demand is strong, but we could get into a bubble.”
Godrej, whose family fortune is estimated to be about $5.2 billion, doesn’t really care if prices go up in south Mumbai’s old-money neighbourhoods such as Malabar Hill or Altamont Road, where Reliance Industries chairman, billionaire Mukesh Ambani, is building a 27-storey $1 billion home.
“I would be more disturbed if middle-level and lower-level housing in Mumbai were to go up much,” Godrej told the Reuters India Investment Summit in Mumbai.
Godrej Properties, which is developing a lot of what is termed ‘affordable housing’, expects revenue to jump more than 50 percent in the fiscal year ending in March as rising incomes boost demand for housing.
If prices continued to increase at current supply levels, the Indian residential market could head into a “bubble.”
The company, part of the $2.5 billion diversified Godrej group, defines ‘affordable housing’ as an apartment that carries a price tag of less than 2,500,000 rupees or $50,000. Is that within your budget?
Paranoid governments and conspiracy theories
Adi Godrej, who marshals his namesake $2.5 billion diversified group, believes the Indian government is “paranoid” about the possible effects of allowing more foreign investments into sectors such as airlines.
“They (the Indian government) have not allowed foreign airlines to invest in private airlines, and they cite security. I don’t see what security would be compromised,” Godrej told the Reuters India Investment Summit in Mumbai.
“If British Airways or Delta got to own part of an Indian private airline, they are worried about what would happen in times of a war, etc. You are in control of your country. What can they do in difficult times to stop it?” he said.
Godrej also said that allowing more private players into sectors such as roads and education would help lift India away from infrastructure perils plaguing the country.
It’s not hard to think of Indian government officials sitting at their gnarled desks in crumbling office buildings doing what Mel Gibson’s character did in the movie Conspiracy Theory. But as Mel Gibson discovers, the enemy probably lies within. How’s that for a conspiracy?
Banks lead Sensex to near 32-month high
MUMBAI (Reuters) – The BSE Sensex had its best week in six months, rising 0.7 percent to its highest close in almost 32 months on Thursday as rapid growth expected in Asia’s third-largest economy drew investors.
The market is closed on Friday for a local holiday.
Financials such as SBI, ICICI Bank and HDFC Bank led the gains as fund managers bet the sector would benefit from a booming domestic economy, which is expected to expand 8.5 percent in the 2011 fiscal year.
The 30-share BSE index closed up 0.71 percent, or 132.95 points, at 18,799.66, with 18 components rising. It had hit 18,823.17 points intra-day, its highest since February 2008.
The benchmark ended the week up 3.2 percent, its best weekly performance since early March.
“I will not be advising clients to exit in a hurry. There is still enough liquidity in the system to support the market, and the macroeconomic situation still looks pretty good,” said Sonam Udasi, head of research at IDBI Capital.
The BSE index has risen more than 7.6 percent so far in 2010, helped by foreign portfolio investments of about $13.5 billion. It had soared 81 percent in 2009, its biggest yearly rise since 1991.
Reliance Industries not finished with U.S. shale buys
MUMBAI/NEW YORK (Reuters) – Indian billionaire Mukesh Ambani’s Reliance Industries, which has struck three shale gas joint ventures with U.S. firms this year, may make a full buyout next as the cash-rich firm builds the knowledge it needs to run such operations.
Reliance has received about 20 to 25 pitches from investment bankers for shale assets, Reliance Chief Financial Officer Alok Agarwal said recently.
Bankers say potential targets include Fort Worth, Texas-headquartered Quicksilver Resources Inc (KWK.N: Quote, Profile, Research), Denver, Colorado-based Enduring Resources and companies with assets in the Horn River shale formation in Canada.
Another firm on Reliance’s radar may be Houston, Texas-based EOG Resources(EOG.N: Quote, Profile, Research), which said in early August it plans to sell about 180,000 acres in U.S. shale plays — underground rock formations that hold reserves of oil and natural gas.
Shale gas accounts for between 15 percent and 20 percent of U.S. gas production, but is expected to quadruple in coming years, touching off a scramble among producers large and small for access to resources.
Ambani, the world’s fourth richest man according to Forbes magazine, has made no secret of Reliance’s overseas ambitions, and is looking to invest in new areas such as shale gas to expand the firm’s businesses beyond petrochemicals, refining, oil and natural gas exploration, and retail.
He could face competition from other firms, including Royal Dutch Shell, Total and Mitsui, which have done shale gas deals previously, and those that have not bought a shale asset yet such as Chevron and Encana.
India’s Reliance not finished with U.S. shale buys
MUMBAI/NEW YORK (Reuters) – Indian billionaire Mukesh Ambani’s Reliance Industries (RELI.BO: Quote, Profile, Research, Stock Buzz), which has struck three shale gas joint ventures with U.S. firms this year, may make a full buyout next as the cash-rich firm builds the knowledge it needs to run such operations.
Reliance has received about 20 to 25 pitches from investment bankers for shale assets, Reliance Chief Financial Officer Alok Agarwal said recently.
Bankers say potential targets include Fort Worth, Texas-headquartered Quicksilver Resources Inc (KWK.N: Quote, Profile, Research, Stock Buzz), Denver, Colorado-based Enduring Resources and companies with assets in the Horn River shale formation in Canada.
Another firm on Reliance’s radar may be Houston, Texas-based EOG Resources (EOG.N: Quote, Profile, Research, Stock Buzz), which said in early August it plans to sell about 180,000 acres in U.S. shale plays — underground rock formations that hold reserves of oil and natural gas.
Shale gas accounts for between 15 percent and 20 percent of U.S. gas production, but is expected to quadruple in coming years, touching off a scramble among producers large and small for access to resources.
Ambani, the world’s fourth richest man according to Forbes magazine, has made no secret of Reliance’s overseas ambitions, and is looking to invest in new areas such as shale gas to expand the firm’s businesses beyond petrochemicals, refining, oil and natural gas exploration, and retail.
He could face competition from other firms, including Royal Dutch Shell (RDSa.L: Quote, Profile, Research, Stock Buzz), Total (TOTF.PA: Quote, Profile, Research, Stock Buzz) and Mitsui (8031.T: Quote, Profile, Research, Stock Buzz) (MITSY.O: Quote, Profile, Research, Stock Buzz), which have done shale gas deals previously, and those that have not bought a shale asset yet such as Chevron (CVX.N: Quote, Profile, Research, Stock Buzz) and Encana (ECA.TO: Quote, Profile, Research, Stock Buzz).
Reliance Comm’s tower deal with GTL falls through
MUMBAI, Sept 6 (Reuters) – Reliance Communications’ (RLCM.BO: Quote, Profile, Research, Stock Buzz) plan to sell its telecoms tower business to GTL Infrastructure (GTLI.BO: Quote, Profile, Research, Stock Buzz) has fallen through, dealing a blow to the efforts of India’s No. 2 cellular carrier to nearly halve its debt.
GTL Infrastructure said on Monday the transaction, which was announced in late June, had been called off after the companies failed to reach an agreement on terms, sending shares in both companies lower.
Reliance said in a statement it is in talks with other strategic and financial investors to sell a stake in the business. It declined to comment on why the deal with GTL had failed.
A deal would have cut Reliance Comm’s debt by $3.9 billion, nearly half the total, a source told Reuters in late June after GTL and Reliance Comm agreed to combine their tower operations into a company that would have had an enterprise value of over $11 billion and owned 80,000 towers. [ID:nSGE65Q00S]
“It’s a negative for Reliance Communications,” said Harit Shah, a telecoms analyst with Karvy Stock Broking. “It would have given them cash, would have improved their debt situation.”
Debt-laden Reliance Communications, controlled by billionaire Anil Ambani, said in early June it was looking to sell a 26 percent stake in itself. However, only Abu Dhabi’s Etisalat (ETEL.AD: Quote, Profile, Research, Stock Buzz) has publicly expressed any interest in a possible deal.
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