https://www.miningweekly.com
Coal|Energy|Gas|Power|Safety|Solar
Coal|Energy|Gas|Power|Safety|Solar
coal|energy|gas|power|safety|solar

China takes advantage of cheap gas and coal to rebuild stocks

13th May 2024

By: Bloomberg

  

Font size: - +

China is taking advantage of lower international prices for coal and natural gas to replenish stockpiles of power fuels ahead of another long, hot summer.

Gas imports through the end of April jumped 21% from the previous year, while coal purchases climbed 13%. The increase in coal in particular has defied predictions that imports would moderate from last year’s record-setting pace, and comes after domestic production posted its first quarterly drop since the third quarter of 2020.

Coal miners are wrestling with heightened scrutiny on safety after a spate of fatal accidents, as well as depleting quality after the rush to expand capacity in recent years. Producers of China’s mainstay fuel are also putting limits on output growth as Beijing’s deadline to peak coal consumption by 2025 approaches.

That’s forcing utilities to lean more heavily on imports, an advantage given relatively lower fuel costs on the global market. The Japan-Korea marker for liquefied natural gas, Asia’s benchmark, averaged just over $9 per million British thermal units in the first quarter, down from $18 in the same period in 2023. Newcastle coal futures in major exporter Australia averaged $127 a ton, from $236 in the prior year.

Ensuring power supplies has been a priority for policymakers since a series of embarrassing shortages in 2021 and 2022 forced widespread factory shutdowns. Meanwhile, another unusually hot summer in the northern hemisphere is forecast, which is likely to raise demand for airconditioning in coming months.

Even as China has dramatically ramped up wind and solar in recent years, its power demand, including from electric vehicles, continues to outpace new supply, creating an ever greater need for fossil fuels. This year China’s power consumption is expected to increase 8% in the first half, with peak demand expected to surpass last year’s record by 100 gigawatts — the equivalent of adding Australia to the grid.

Still, there are signs the country may have reached a tipping point where new clean energy installations are enough to meet additional usage, which will push fossil fuels and their emissions into a long-term decline. Gas and coal prices have also inched up in recent weeks, leading some gas buyers to offer to resell summer cargoes, suggesting that the surge in imports may cool.

Edited by Bloomberg

Comments

Showroom

AutoX
AutoX

We are dedicated to business excellence and innovation.

VISIT SHOWROOM 
Aqs image
AQS Liquid Transfer

AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Resources Watch
Resources Watch
12th June 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.17 0.204s - 91pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: