China

老油田书写能源新答卷

Guangming Daily | Local Language | News | Dec. 12, 2025 | UndeterminedEnergy Prices

On December 3, 2025, the Gulong continental shale oil demonstration area in Daqing surpassed an annual production of one million tons, marking a significant milestone in the large-scale, efficient exploitation of shale oil. The development started in 2021 with a production of 15,000 tons, steadily increasing each year through technical breakthroughs and independent innovation, positioning Gulong shale oil as a strategic resource to enhance China's national energy security.

Daqing Oilfield overcame major challenges unique to Gulong shale oil, such as high clay content and complex geological characteristics that made conventional fracturing methods ineffective. Initial attempts to apply North American fracturing technology failed, leading the team to develop their own exclusive fracturing process tailored to local conditions. This indigenous process, which includes using higher-quality desert quartz sand, has enabled stable production and improved efficiency while controlling costs.

The development of Gulong shale oil embodies the enduring "Daqing spirit" of perseverance and innovation, with drilling teams setting regional records despite difficult strata. Single wells have achieved notable stable outputs, and year-one production declines have been more favorable than those in North America. The project plans to expand beyond the current Q9 oil layer to deeper reserves with three-dimensional multi-layer fracturing, addressing complex engineering challenges for coordinated fracture network development.

Looking forward, Daqing Oilfield aims to increase annual shale oil production to 3 million tons by the end of the 15th Five-Year Plan and 5 million tons by the end of the 16th Five-Year Plan. Continued technological breakthroughs and resource development will support the goal of building a century-old oilfield and contributing to China's energy security. The company emphasizes unwavering dedication to overcoming technical bottlenecks and maximizing resource potential as part of its national mission.

China Daily | English | News | Dec. 12, 2025 | UndeterminedEnergy Prices

In 2025, China has significantly expanded its power-trading market, allowing enterprises to purchase electricity at market-based rates, which enhances cost control and accelerates the transition to cleaner energy. For example, Xuzhou Shanshan Outlet Plaza reduced its monthly electricity bills by over 70,000 yuan ($9,910) by buying power through the market, while also benefiting from sourcing renewable energy to support low-carbon supply chains. Approximately 23,900 industrial and commercial businesses in Xuzhou participated in the market in 2025, with market-based power consumption reaching 10.2 billion kilowatt-hours in the first half of the year, saving users around 40 million yuan monthly.

China's unified national power market, launched in 2025, facilitates long-distance transmission of renewable energy, such as hydropower from Yunnan and Sichuan provinces, to energy-demanding industrial regions like the Yangtze River Delta. Market-traded electricity increased from 1.1 trillion kWh in 2016 to 6.2 trillion kWh in 2024, accounting for 63 percent of total electricity consumption. The State Grid's trans-provincial transmission capacity reached 370 million kilowatts by November, promoting efficient resource allocation and reliable energy supply amidst varying regional energy endowments.

Jiangsu province has aggressively promoted green power trading, boosting the trading volume from 1.37 billion kWh in 2021 to 20.34 billion kWh in 2024, resulting in reductions of 6.24 million metric tons of standard coal consumption and 15.56 million tons of carbon dioxide emissions. Concurrently, China's combined wind and solar installed capacity surged from 530 million kW in 2020 to 1.68 billion kW by mid-2025, growing at an average annual rate of 28 percent. The growing demand for green electricity includes trade fairs, conferences, and exporters aiming to enhance carbon neutrality and global competitiveness amid increasing carbon footprint awareness.

Deal Street Asia | English | News | Dec. 12, 2025 | UndeterminedMergers & Acquisitions

Hong Kong developer Lai Sun Development has agreed to sell its 50% stake in an office tower in the city’s central financial district to JD.com for HK$3.5 billion ($450 million). The sale involves 12 floors and parking spaces in the tower, with the other half owned by CCB Properties (Hong Kong). The transaction is set to close in January and marks one of the largest office asset deals in Hong Kong this year.

Lai Sun will receive net proceeds of HK$2.4 billion, which will improve its cash flow and help address mounting financial difficulties, including refinancing bank loans and selling assets. The sale price reflects a 6.7% discount from a July valuation due to current macroeconomic challenges and market sentiment. Lai Sun anticipates a non-cash loss of HK$261 million from the disposal but expects its financial position to improve significantly, shifting from net current liabilities to net current assets after completing the sale and refinancing a syndicated loan in September.

The developer has faced substantial financial stress, reporting a HK$2.9 billion net loss for the year ending in July and current liabilities exceeding current assets by HK$4.5 billion. It also has HK$524 million in bond repayments due next year, the largest among Hong Kong’s indebted issuers. JD.com plans to use the acquired office space for its own operations and expressed optimism about its growth prospects in Hong Kong, intending to continue investing in retail, logistics, and technology R&D within the city.

This transaction follows a similar recent deal where Alibaba and its affiliate Ant Group purchased the top floors of another Hong Kong office tower for $925 million, highlighting increased interest from e-commerce companies in the city's commercial real estate market.