Archive for July 11th, 2009

How does the Shenyang Power Alliance align with APWR?? How does Sinopec get involved with APWR and Shenyang Power Alliance??? Answer:: Sinopec is 50/50 joint venture on an LNG project in Macua , China. Shenyang Power Alliance has signed a potential 1.5 billion (BILLION) to build a LNG terminal in Macau.

How does the Reform Committee of China fit into the picture of this LNG project and Macau Natural Gas financed by Sinopec??? ANSWER:: we dont know right this second but Sinopec does 33 billion in revenues per year and is basically the Exxon of China. Implications for APWR is that Sinopec and Macau NatGas will joint venture this massive project and consortium of companies forming the Chinese Shenyang Power Alliance will benefit and prosper as the Chinese government starts spending stimulus money to finance and build projects providing jobs and economic stimulus for advancement of clean power into the future. A 2400 megawatt power plant is also planned after the LNG terminals are completed. Potential contract signings for APWR and Shenyang Power Alliance partners is around 3 to 4 billion total contract over 5 years time frame.

How do you invest with NO signed contracts??? Well, the answer is buying into APWR is like buying into a MLM where the ”’dream” of owning ground level is a platform for future potential gains and profits given the immense need for China to produce clean green power.

APWR has a demonstrated history of producing profits and building clean green power plants. If APWR can ramp their wind division, APWR could triple in a few short years time frame. Given the overall world economic troubles, find me another investment that has a legitimate chance to triple in 3 years time frame????? With GE partnering with APWR for the wind gear boxes for China and Asia for GE, APWR is sure to be moving up in stock price very shortly. DO NOT DELAY in taking your positions IF you are looking to invest into APWR for the China Green Clean future.
“”"STRONG BUY”"”" based on this Macau Nat Gas MOU

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  • BANGALORE, July 10 (Reuters) – A-Power Energy Generation Systems Ltd (APWR.O) said its unit, the Shenyang Power Group, signed a memorandum of understanding with the Macau Natural Gas Co to construct a $1.5 billion offshore liquefied natural gas (LNG) complex, sending its shares up almost 26 percent.

    Shares of the company, which provides distributed power generation systems in China, rose to a high of $8.99 in early trade, before paring some gains to trade up 17 percent at $8.40 later in the day. The stock was the third highest percentage gainer on Nasdaq.

    “The contract is a big positive. It is by far the largest contract that A-Power has ever had,” Raymond James analyst Pavel Molchanov told Reuters.

    It is a sign of confidence in A-Power’s ability to pull off a project of this magnitude, Molchanov said, adding that the economics should be “very significant” in the long run.

    The analyst, however, pointed out that margins tend to be somewhat lower as a percentage on very big projects, but also said that as the company had not yet got the contract, margins would be up for negotiation.

    “Assuming the final contract is agreed upon, revenue would begin to be generated over the process of construction. In general, on these sort of projects, revenue is recognized on a percentage-of-construction basis,” the analyst said.

    In a statement, A-Power said with government backing, it was hopeful that the final terms of the contract will be set out later this year and the construction phase could start sometime next year, adding that the terminals could take about two years to build.

    The capacity of the LNG facilities is expected to be 3 million tons per year starting 2013, and 5 million tons per year in 2015, A-Power said.

    An artificial island to be formed by land reclamation adjacent to Macau will be the site for the project.

    The Shenyang, China-based company also said after the construction of the LNG terminals, a 2,400 megawatt natural gas power plant will be built at the same location.

    The analyst added that while it was hard to say exactly how much the 2,400 MW power-plant contract would be for, it could be in the billion-dollar range. (Editing by Himani Sarkar)

    ((((( I have to offer my own opinion on this quote by the analyst that the 2400MW nat gas plant would be in the billion dollar range. The analyst was either taken out of context or misquoted or did not know the potential costs of a power plant! A 2400 MW plant is going to cost a minimum of 1.5 billion to 2.4 billion bare minimum!)))

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