Japanese power generator Tokyo Electric Power Company (TYO:9501) at the weekend signed a deal with US energy giant Chevron (NYSE:CVX) to buy 4.1 million tonnes of gas a year for 20 years from Wheatstone natural gas project off in WA, Australia. WA Premier Colin Barnett said the deal was worth A$90 billion, trumping the A$50 billion gas sale to China from the Gorgon project as Australia's biggest sales contract. Tokyo Electric Power will also take a 15 per cent stake in the gas field and an 11.25 per cent stake in the processing facilities.
Sydney, Dec 7, 2009 AEST (ABN Newswire) - US stocks soared on Friday after the Labor Department data showed that job cuts fell sharply in November. The news fuelled the expectations that the US Federal Reserve might consider increasing interest rates.
US dollar was stronger against Japanese yen after the better-than-expected US jobs data, which could send investors back to riskier assets. Asian stocks held most of the week's gains ahead of the U.S. jobs data on Friday. Today Japan's Nikkei opened higher as Japanese exporters benefit from a weaker yen, while the Australian market is weighed by lower metal prices.
Company News
Japanese power generator Tokyo Electric Power Company (TYO:9501) at the weekend signed a deal with US energy giant Chevron (NYSE:CVX) to buy 4.1 million tonnes of gas a year for 20 years from Wheatstone natural gas project off in WA, Australia. WA Premier Colin Barnett said the deal was worth A$90 billion, trumping the A$50 billion gas sale to China from the Gorgon project as Australia's biggest sales contract. Tokyo Electric Power will also take a 15 per cent stake in the gas field and an 11.25 per cent stake in the processing facilities.
Hong Kong listed China Gas Holdings (HKG:0384) is expecting sharp increases in sales of both piped natural gas and liquefied petroleum gas in the coming years, said company executives. It is reportedly that China Gas is in talks to sell a stake in its liquefied petroleum gas subsidiary, Shanghai PetroPower, to PetroChina (SHA:601857)(HKG:0857) in a deal that would lead to a separate listing of the subsidiary.
BHP Billiton (ASX:BHP) and Rio Tinto (ASX:RIO) has signed a binding agreement for an historic US$116 billion iron ore merger at the weekend. The miners are expecting to save US$10 billion costs by combining their iron ore mines, ports and railways operations in Western Australia's Pilbara region. But Rio and BHP will sell their iron ore output separately. Under the deal, BHP has agreed to pay Rio about US$5.8 billion to ensure they both have an even 50 per cent of the joint venture. Submissions seeking approval for the proposed joint venture have been filed with the European Commission and Australian Competition and Consumer Commission, with similar documentation expected to be submitted to regulators in China and Japan by the end of the year.
Toyota Motor Corp. (TYO:7203) has decided to resume construction of new plants in China and the United States that had been suspended amid the global economic crisis. The yen's appreciation against the U.S. dollar and the demand growth in China has prompted the company to conclude that it is necessary to boost local production in the two markets. Toyota expects to commence operations at the new plant in Mississippi as early as 2011 while the plant in Changchun, China, could become operational by the end of March 2011, said the sources.
Contact
Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net
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