Privately-owned Chinese firm GCL Holdings is shifting focus back to the natural gas sector, pivoting away from solar energy, according to Reuters.
Amidst a global liquified natural gas (LNG) supply surplus and burgeoning demand in China, GCL aims to establish itself among the second-tier LNG players in the country, alongside ENN and Beijing Gas Group.
This move coincides with plummeting spot LNG prices and China’s resurgence as the world’s leading LNG importer.
GCL’s reentry into the gas domain involves bolstering gas import capacity and trading operations.
They’ve recruited Xiong Xin, a seasoned expert from ENN Natural Gas, to lead their gas trading division. Additionally, plans are underway to establish a gas trading arm in Singapore.
Previously a major player in solar energy, GCL’s foray into gas a decade ago was hindered by debt issues stemming from their solar power ventures. However, the recent divestment of solar assets worth billions has freed up resources for a renewed push into the gas sector.
Notably, GCL aims to construct two LNG receiving terminals in China, with an additional focus on gas production and exportation from Ethiopia.
Furthermore, GCL holds stakes in gas-fired power plants and intends to cater to various customers, including city gas companies and ceramics manufacturers. There’s also contemplation of resuming gas exploration activities in Ethiopia’s Ogaden region, potentially culminating in a significant LNG export project in the future.
