Gulf Finance Investing $5 Billion in Energy City China

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Researched by Industrial Info Resources (Sugar Land, Texas). Following the announcement of the $2.6 billion Energy City Qatar in March 2006 and Energy City India in October 2006, the Bahrain-based Gulf Finance House (GFH) in association with Gulf Energy has announced plans to set up a $5 billion Energy City in China. It will be sited in the Yanjiao Economic & Development area in Sanhe City near Beijing. The 13.4 square kilometer city will house a purpose built, integrated business center constructed specifically to meet the needs of local and international energy companies. The City’s residential zone will include villas, houses and apartments, shopping malls, first class healthcare facilities, leisure facilities, a library, cultural and exhibition centers. The development will represent the single largest investment in China by a Middle East consortium. See related May 22, 2007 news article – Gulf Finance House Backs Energy City India to Serve Oil and Gas Traders.

Esam Janahi, Chief Executive of GFH, said, “For the first time ever, China’s energy industry will boast its own business and residential hub, designed specially for oil and gas companies. To date Gulf investments in China have remained relatively low, in spite of China having invested over $7 billion in the Gulf. China’s oil requirements will rise to 7.3 million barrels per day by 2020, a key factor in GFH’s decision to create Energy City China. With more than 50% of that oil supply expected to come from the Middle East, China is an attractive commercial opportunity for Middle East energy companies.”

Key facilities in Energy City will include: an energy data bank, collecting and disseminating energy-related information and data; and energy monitoring center providing real-time energy market information, analysis and data gathering from around the globe; an energy and high tech bank to develop investment products, real estate development and private equity; and a financial service center. An international mercantile exchange, IMEX, will provide a dedicated energy platform trading an innovative range of energy products. IMEX will be established subject to regulatory and government approvals. There will also be a science and technology park bringing energy players together with leading universities and research institutes and a Sino-Arab international business school with courses in English, Arabic and Chinese. Energy City has an international advisory board comprising of eminent experts fro the business world, particularly from the energy and energy-related sectors.

Gulf Energy’s IMEX aims to create a worldwide network of regional exchanges interconnected by a technological operations and regulatory framework accessible to both global and local market participants. Gulf Energy is a consortium of companies and investors from the US, the Gulf, Europe and Southeast Asia.

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