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Sinopec's New Refinery in Alberta to Help Local Producers
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China Petroleum & Chemical Corporation , widely known as Sinopec, recently joined a group to build an oil sands refinery in Alberta. Apart from Sinopec, the group consists of an Albertan indigenous group, China State Construction Engineering Corp. and Alberta management company Teedrum. The partnership will be known as SinoCan Global, which has selected Stantec Inc. (STN - Free Report) for providing consulting services concerning the project’s regulatory review and permitting process.
Although a financing plan and ownership of the project is yet to be determined, the facility is expected to cost around C$8.5 billion. Per the project plans, the refinery, with a daily processing capacity of 167,000 barrels of diluted bitumen, will be built in the province. The product basket of the project includes diesel fuel, basic chemicals, gasoline and jet fuel, which will be used for both domestic consumption and export purposes.
Importance of the Project
Notably, the previous government of the country declined a similar proposal in 2012, which was supposed to back the aboriginals, due to the lack of economic benefits. Since then, the Canadian energy market has come a long way amid several ups and downs. Currently, the industry is facing takeaway capacity constraints, resulting in a bottleneck situation, hampering the overall economy.
The situation has resulted in declining investments in Canadian oil sands. This has forced the producers to sell their products at heavy discounts. The SinoCan Global refinery will bring in new opportunities for the producers in the region. It is expected to strengthen the demand for local heavy crude gathered from the oil sands. Moreover, if built, the refinery will become the second-largest one in the province.
Alberta First Nations Energy Development fund intends to hold stakes in the project, which will help it to support activities in Indigenous communities. The project is expected not to take more than two years in clearing regulatory hurdles from the authorities.
Price Performance
State-run Sinopec, one of the leading integrated energy players in the world, has gained 23.4% in the past year compared with 27.7% collective growth of the industry it belongs to.
Zacks Rank and Stocks to Consider
Currently, Sinopec has a Zacks Rank #4 (Sell). Investors interested in the energy sector can opt for some better-ranked stocks like Ecopetrol S.A. (EC - Free Report) and Petroleo Brasileiro S.A. or Petrobras (PBR - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bogotá, Colombia-based Ecopetrol’s full-year earnings are expected to surge 90.8% from 2017. The company recorded a positive earnings surprise of 32.4% in the last reported quarter.
Rio de Janeiro, Brazil-based Petrobras is an integrated energy company. The company’s top line for 2018 is likely to improve 7.5% year over year. In the last four reported quarters, it delivered an average positive earnings surprise of 10.4%.
Best Electric Car Stock? You'll Never Guess It.
Zacks Research has released a report that may shock many investors. One stock stands out as the best way to invest in the surge to electric cars. And it's not the one you may think!
Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.
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Sinopec's New Refinery in Alberta to Help Local Producers
China Petroleum & Chemical Corporation , widely known as Sinopec, recently joined a group to build an oil sands refinery in Alberta. Apart from Sinopec, the group consists of an Albertan indigenous group, China State Construction Engineering Corp. and Alberta management company Teedrum. The partnership will be known as SinoCan Global, which has selected Stantec Inc. (STN - Free Report) for providing consulting services concerning the project’s regulatory review and permitting process.
Although a financing plan and ownership of the project is yet to be determined, the facility is expected to cost around C$8.5 billion. Per the project plans, the refinery, with a daily processing capacity of 167,000 barrels of diluted bitumen, will be built in the province. The product basket of the project includes diesel fuel, basic chemicals, gasoline and jet fuel, which will be used for both domestic consumption and export purposes.
Importance of the Project
Notably, the previous government of the country declined a similar proposal in 2012, which was supposed to back the aboriginals, due to the lack of economic benefits. Since then, the Canadian energy market has come a long way amid several ups and downs. Currently, the industry is facing takeaway capacity constraints, resulting in a bottleneck situation, hampering the overall economy.
The situation has resulted in declining investments in Canadian oil sands. This has forced the producers to sell their products at heavy discounts. The SinoCan Global refinery will bring in new opportunities for the producers in the region. It is expected to strengthen the demand for local heavy crude gathered from the oil sands. Moreover, if built, the refinery will become the second-largest one in the province.
Alberta First Nations Energy Development fund intends to hold stakes in the project, which will help it to support activities in Indigenous communities. The project is expected not to take more than two years in clearing regulatory hurdles from the authorities.
Price Performance
State-run Sinopec, one of the leading integrated energy players in the world, has gained 23.4% in the past year compared with 27.7% collective growth of the industry it belongs to.
Zacks Rank and Stocks to Consider
Currently, Sinopec has a Zacks Rank #4 (Sell). Investors interested in the energy sector can opt for some better-ranked stocks like Ecopetrol S.A. (EC - Free Report) and Petroleo Brasileiro S.A. or Petrobras (PBR - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bogotá, Colombia-based Ecopetrol’s full-year earnings are expected to surge 90.8% from 2017. The company recorded a positive earnings surprise of 32.4% in the last reported quarter.
Rio de Janeiro, Brazil-based Petrobras is an integrated energy company. The company’s top line for 2018 is likely to improve 7.5% year over year. In the last four reported quarters, it delivered an average positive earnings surprise of 10.4%.
Best Electric Car Stock? You'll Never Guess It.
Zacks Research has released a report that may shock many investors. One stock stands out as the best way to invest in the surge to electric cars. And it's not the one you may think!
Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.
See Zacks Best EV Stock Free >>