China takes measures to resolve power shortages, but impact on LNG limited
Chinese authorities have stepped up measures to overcome power shortages in several provinces, including raising coal production and resolving transportation bottlenecks, but their impact on LNG imports is likely to be limited, according to market participants and traders.
This was mainly because the share of gas-fired electricity generation in China remains low, with only around 16% of natural gas used in the power sector, and as LNG demand in North Asia will continue to be driven by heating demand and a cold snap that’s expected to last through at least January.
China tells railway companies, state-owned miners to overcome thermal coal supply shortages: sources
Chinese authorities have instructed railway companies to prioritize train wagons for thermal coal transportation while mandated state-owned miners to ramp up production to meet heating needs during winter, sources said Dec. 23.
Guangzhou Railway Corp. and Inner Mongolia Railway got instructions to cancel all train appointments to ensure the stability of power supply in Inner Mongolia and southern China during winter, sources said.
At least 70,000 mt/d of thermal coal shall be discharged in Hunan region in southern China, sources added.
Jinneng Holding Power Group Co. Ltd. has recently ramped up the shipping of thermal coal to utilities with urgent electricity needs while expanding procurement plans for thermal coal and increasing thermal coal plants’ operating rates to balance supply and demand, sources said.