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APWR Announces a Potential 1.5 Billion Nat Gas LNG Plant in China

|Includes: A-Power Energy Generation Systems Ltd. (APWR)

The possibilities for APWR are endless as the Shenyang Power Alliance announces a potential 1.5 billion LNG Nat Gas terminal with Macau Nat Gas Company which is a 50/50 joint venture with Sinopec.   Sinopec did 33 billion last year in revenues so we dont have to worry about where the money will come from to pay for this aggressive project.   After the LNG terminal is completed, a 2400 megawatt nat gas plant will be built on same site.   A 2400 MW power plant is going to cost around 2 billion to construct.

APWR owns 60% of the Shenyang Power Alliance and since the Reform Committee of China (Peoples Republic of China communist party) is part of this Shenyang Power Alliance, it is almost a given this alliance will prevail in completing this project.   For aggressive investors, the pivot point of $7.25 was achieved on Wednesday.   The earnings of APWR are going to go up this year on new wind projects and new power station contracts.  STRONG BUY and my price target for end of 2009 is $19 per share

Disclosure:: I am LONG APWR