rongsheng petrochemical singapore pte ltd bloomberg quotation

HONG KONG (Reuters) - Jiangsu Rongsheng Heavy Industries Co Ltd has appointed Morgan Stanleyand JP Morganto finalize plans for its long-awaited IPO in Hong Kong, aiming to raise up to $1.5 billion in the fourth quarter, sources told Reuters on Tuesday.

This is Rongsheng’s latest bid to go public after it failed to raise more than $2 billion from a planned IPO in Hong Kong in 2008, mainly as a result of the global financial crisis.

Rongsheng"s early main shareholders included an Asia investment arm of Goldman Sachs, U.S. hedge fund D.E. Shaw and New Horizon, a China fund founded by the son of Chinese Premier Wen Jiabao.

The three investors sold off their stakes in Rongsheng for a profit early this year, said the sources familiar with the situation. Representatives for the banks, funds and Rongsheng all declined to comment.

Rongsheng’s revived IPO plan comes at a challenging time. Smaller domestic rival, New Century Shipbuilding, slashed its Singapore IPO in half last week, planning to raise up to $560 million from the originally planned $1.24 billion due to weak market conditions.

Given uncertainty in the global shipbuilding business environment as well as growing concerns over a huge flow of fund-raising events in Hong Kong, investment bankers suggest the potential size for Rongsheng could be $1 billion to $1.5 billion, according to the sources.

Rongsheng is seeking to tap capital markets to fund fast growth and aims to catch up with bigger state-owned rivals such as Guangzhou Shipyard International Co Ltd.

Rongsheng won a $484 million deal to build four ships for Oman Shipping Co last year. The vessels would carry exports from an iron ore pellet plant in northern Oman which is expected to begin production in the second half of 2010.

SINGAPORE/BEIJING, June 23 (Reuters) - China’s gasoline exports fell 42.4 percent in May from a year earlier and diesel shipments fell 37.8 percent, customs data showed on Sunday.

LNG imports for the first five months of 2019 rose 20.3% from a year earlier to 23.87 million tonnes, the data showed. (Reporting by Chen Aizhu in Singapore, Tina Qiao and Kevin Yao in Beijing; Editing by Muralikumar Anantharaman)

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With demand for transport fuels set to tail off in the years ahead, a new breed of processing plants is sprouting up across the region. These integrated refineries convert oil into petrochemicals, the building blocks for everything from food packaging to car interiors, and produce less fuels like gasoline.

In China, the biggest of these is Rongsheng Petrochemical Co.’s plant on Zhoushan island, near Ningbo. The 800,000 barrel-a-day operation opened in 2019 and will reach full capacity before year-end. An Indian Oil Corp.-led group is planning a gigantic 1.2 million barrels a day oil-to-chemicals complex on the country’s west coast. Saudi Aramco, as part of its strategy to invest downstream in Asia, has or plans to take a stake in both projects.

All told, more than half of the refining capacity that comes on stream from 2019 to 2027 will be added in Asia and around 70% to 80% of this will be plastics-focused, according to industry consultant Wood Mackenzie Ltd. Petrochemicals will account for more than a third of global oil demand growth to 2030 and nearly half through 2050, the International Energy Agency predicts.

“It doesn’t make sense now to operate a standalone refinery or a standalone petrochemicals plant for that matter," said Sushant Gupta, research director for Asia Pacific refining at WoodMac. Smaller facilities will find the new environment challenging, while there’s also a risk of over-capacity, he said.

Consumer and government pressure to reduce the use of plastics that are choking the world’s oceans is a hard-to-quantify threat to demand for petrochemicals. Asia consumes about half the world’s plastic packaging, according to BloombergNEF, and imports even more waste for recycling from the U.S. and Europe.

IEA forecasts for petrochemicals demand are based on strong historical growth where plastics consumption has outstripped economic expansion, according to Christof H. Ruehl, a senior research scholar at Columbia University’s Center on Global Energy Policy. But even moderate assumptions on more recycling and lower consumption of single-use packaging could bring forward the agency’s peak oil demand forecast by about a decade, he said.

Adding another wrinkle to the industry’s transition to petrochemicals is the pandemic, which has left refiners worldwide struggling with weak margins and could stem the flow of downstream investment from the Middle East to Asia. Complex refining margins in Singapore are at 52 cents a barrel, compared with a five-year average of $4.18.

In addition to what Indian Oil is planning, Reliance Industries Ltd. has invested about $20 billion in recent years to double its petrochemicals production capacity and make refining more efficient. Chairman Mukesh Ambani told shareholders last month that the company had proprietary technology to convert gasoline and diesel into the building blocks to produce plastics.

Indian Oil is investing heavily in raising the petrochemicals intensity of its refineries, said Shrikant Madhav Vaidya, chairman of the state-owned refiner. “We are still way below the global average and there is a big scope of improvement and further addition of petrochemical capacities."