China Thermal Coal Imports Will Drop

Chinese coal price war to dampen coal imports - Reuters | China's major coal producers have been slashing domestic prices since July to gain market share, in a move likely to slow import growth for the rest of the year as overseas shipments become less attractive in the top buyer and producer of the fuel. Local coal prices have already dropped 14% so far this year and could drop further . . . Although plans to increase infrastructure investment could also lift coal consumption, efforts to shut plants in sprawling power-intensive industries, such as cement, steel and aluminium, could also partly offset any demand growth, they said. "The industry is still in a phase where major producers are cutting costs to displace marginal producers and that will keep driving down coal prices," Laban Yu, an analyst at investment bank Jefferies, said in a note this week. "The market is calling a bottom. We are not," Yu said. Jefferies says prices will not hit bottom for another year. . . .China's spot coal prices have dropped 9.3% since June to hit a four-year low of 546 yuan ($89.19) this week, even though a record hot summer pushed July power consumption growth to its highest this year. About 10% of China's thermal coal producers have a break-even cost of around 500 yuan a tonne, analysts said, giving major miners plenty of room to keep cutting prices. . . .But with inventories of around 300-million tonnes piled up across the country, about 11% higher than a year ago, analysts at Japanese investment bank Nomura have said China's output needs to fall 8% to 10% to restore market balance

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China Rail Investment Fund 80 bn rmb next year - Public / Private Investors

Plan for Railroad Fund 'to Come by Year's End - Caixin |The fund is expected to launch next year . . . On August 19, the State Council, China's cabinet, called for faster reform of the country's system of financing railroads. This would be done by issuing bonds and setting up a development fund that would involve government funding and private investors. The former Ministry of Railways, National Development and Reform Commission, Ministry of Finance and other departments have discussed such a fund for years, but no consensus has been reached. . . .The central government plans to allocate 60 billion yuan for railroad development and attract another 20 billion yuan from other investors, the banking source said. The CRC source confirmed these figures. The banking source also said the government hopes to raise 200 billion yuan to 300 billion yuan for the development fund in the 2014-15 period, and 100 billion yuan of this would come from the central government's budget. To attract other investors, the CRC source said, the fund will offer yields higher than banks' interest rates.

Coal sales, output fall as demand falters

Coal sales, output fall as demand falters - China Daily | China's coal output and sales contracted in the first seven months amid weak demand, adding pressure on the industry to undertake structural adjustments, the China National Coal Association said. Coal output fell 3.5 percent year-on-year to 2.13 billion tons, with sales down 3.9 percent to 2.07 billion tons, the CNCA said. Due to more competitive prices, coal imports grew 14.1 percent to 187 million tons, while exports sank 22 percent to 4.9 million tons. Jiang Zhimin, the body's vice-president, was quoted by the Xinhua News Agency as saying that domestic coal demand growth is expected to keep slowing for the rest of the year, amid decelerating economic expansion. ... Increasing imports and soft demand have left many domestic coal miners with rising stockpiles, exacerbating their difficulties. Economists said weak foreign and domestic demand, compounded by oversupply, has had widespread financial implications for producers. . . .Shanxi is waiving environmental protection fees and industrial transformation development fees for coal mines. It has also cut coal trading service fees by 50 percent. The measures run from August to December.

Coal-to-gas production costs exceed natural gas production costs, but not gas market PRICES

煤制气开采成本高于天然气 - 国家石油和化工网 | Coal-to-gas production (CTG) costs higher than natural gas production costs, but lower than natural gas selling prices, especially LNG - according to gas analyst Li Lingxuan. Coal is greater than 40% of the cost of CTG, every cubic meter of gas takes about 3 tonnes of coal and 10 tons of water. CTG production cost is 1.6 rmb per m3, natural production gas cost 1 rmb per m3, but gas prices on market range from 2-4 rmb per m3; Eurasian gas to Xinjiang is 2.5 rmb and LNG price is 4 yuan or more per cubic meter.　　在天然气需求与日俱增的态势下，煤制气能否成为继天然气之后，满足居民及企业用气需求的有力支点？相对天然气，煤制气生产成本是否占据优势？昨日，天然气资深分析师李祾譞在接受记者电话采访时表示，煤制气生产成本高于天然气，但售价比天然气更具优势。　煤制天然气成本主要受煤炭价格影响，原料煤成本占比40%以上，每千立方米天然气耗煤3吨左右，耗水10吨左右。按照煤制天然气出厂价格1.6元/立方米计算，原料煤价格在160元/吨以下就有利可图。　伊犁州新型工业化建设协调领导小组办公室重点项目负责人万方说，自治区有关部门根据成本测算，庆华煤制天然气生产成本价为1.6元/立方米，加上自治区给予每立方米0.2元补贴，出厂价为1.8元/立方米。　"与煤制气1.6元/立方米的生产成本价格相比，每立方米天然气的开采成本在1元以内，煤制气生产成本高于天然气。"李祾譞说，但在售价方面，目前我国的天然气价格大概在每立方米2-4元之间，我国从中亚进口的天然气到新疆地区的成本价格就在每立方米2.5元，这还不包括其他费用，而我国进口的LNG(液化天然气)价格达到每立方米4元以上。

China July coal imports rebound as Australia top gainer

China July coal imports rebound as Australia top gainer - coalguru / Reuters | Reuters reported that China's coal imports, excluding lignite, rose 26% in July from the previous month after two months of falls in shipments, as a drop in overseas prices led end users to ramp up orders of Australian coal and restock for peak summer demand. Robust steel production has also led mills to import more coking coal, which jumped 25 percent from the preceding month to 5.88 million tonnes. Customs data showed that China's imports in July, excluding lignite, were at 22.77 million tonnes, compared with 18.04 million tonnes in June. Total shipments in the first seven months were up 13.7% from last year. The strength in July imports, which came after June shipments fell to an 8 month low was a surprise to market participants, as falling domestic prices had narrowed the price advantage of overseas supplies. Analysts said that the jump in the July shipments was in part buoyed by a slump in regional coal prices which saw the benchmark globalCOAL Newcastle index drop AUD 10 within a month to about AUD 77 per tonne its lowest since June 2009. Mr Li Ting a coal analyst with Chang An Energy Research said that "It was a lot of opportunistic buying and end users were taking the opportunity to restock for the peak summer consumption season."

PetroChina's 1st half profit was 65.5 billion rmb; natural gas losses 23.5 billion

中石油上半年净利润655亿 天然气业务报亏235亿 - 网易财经 | PetroChina's 1st half profit was 65.5 billion rmb; natural gas business reported losses 23.5 billion 中石油今晚发布上半年业绩显示，报告期内公司实现营收达到11010.96亿元，比上年同期上升5.2%，实现归属于母公司股东净利润人民币655.22亿元，比上年同期上升5.6%；实现每股基本盈利人民币0.36元，比上年同期增加人民币0.02元。

Argentina + China Shale Deal

Argentina Prepares China Shale Deal to Boost Gas Reserves - Bloomberg | YPF SA, Argentina's state-owned energy company, said its next shale oil and gas partnership will be with a group including China's Cnooc Ltd. (883) China's biggest offshore energy explorer probably will sign next month a definitive deal to explore and develop deposits in the Vaca Muerta formation, either as part of its Bridas Corp. joint venture with the billionaire Bulgheroni brothers or with the Bridas-run Pan American Energy LLC, YPF board member Hector Valle said in an interview. An agreement with Cnooc and Bridas would be YPF's second binding shale partnership in the 16 months since President Cristina Fernandez de Kirchner seized control of the company from Spain's Repsol SA. (REP) Argentina is counting on companies including Chevron Corp. (CVX), which signed the first YPF shale deal last month, to help develop Vaca Muerta and boost gas reserves that now stand at just six years of consumption, Valle said.

The world’s longest burning fires: China's unseen story | Audrey Wozniak - China Dialogue

The world's longest burning fires: China's unseen story - China Dialogue Audrey Wozniak | They are monstrous, centuries-old infernos that issue thick billows of ash and smoke, and generate sinkholes that consume roads and homes without warning. Yet in spite of the dangers they pose, underground coal fires are some of the least known environmental disasters. China, the world's largest miner and consumer of coal, has consistently downplayed the fires in its coalfields, considered the most severe on earth. ..."Every country that is coal-producing has coal fires," says Anupma Prakash, a geologist at the University of Alaska who has conducted extensive research on coal fires. So it comes as no surprise that China, which accounted for 49.5% of last year's global coal production, also has the world's worst coal fires. Hundreds of fires proliferate the nearly 3,000-mile coal belt running across north China.

Shanxi province: saving the coal industry, but sacrificing the environment | Luna Lin - China Dialogue

Shanxi province: saving the coal industry, but sacrificing the environment - China Dialogue Luna Lin | Environmentalists warn that Shanxi's fight to save its ailing coal industry by handing out tax cuts will increase pollution. Shanxi province, in northern China, has long relied on its natural coal resources, but is now suffering from a drop in domestic demand amid China's economic downturn. Coal prices have plunged to their lowest level in four years....Shanxi has responded to the slump with a stimulus package. Shanxi officials have been tasked with promoting the sales of local coal, a measure rarely seen since the late 1990s. As well as mobilising local officials to become salespersons for the ailing coal industry, the provincial government announced 20 measures aimed at stabilising the coal market. This included temporarily scrapping the environmental protection fees and industrial transformation development charges for coal mines. ...While this may be an industry-saving initiative, there are concerns about its environmental cost. Feng Yongfeng, the founder of Nature University, a Beijing-based Green NGO, said the government's move was "yet another example of sacrificing the environment for the sake of the economy." The stimulus package could "cause severe harm to...the country's goal of reducing emission and conserving energy." Li Gan, founder of the legal website, Public Interest Litigation, echoed Feng's concerns when he asked on Weibo: "When saving the coal industry, can we really afford to sacrifice the environment?"

North China LNG plants cut prices for first time since May

North China LNG plants cut prices for first time since May - Interfax Tang Tian | LNG suppliers in central Chinese provinces have cut prices for the first time in three months, under pressure from bloated inventories caused by weak demand and competition from imported LNG, a domestic energy consultancy said on Wednesday.

China oil demand up 6.6% vs PY

China oil demand up 6.6% vs. year ago: Platts - MarketWatch | China's apparent oil demand climbed by 6.6% to average 9.82 million barrels per day in July compared with a year earlier, according to a Platts analysis of Chinese government data released Thursday. Refinery runs rose 7.1% compared to a year earlier, Platts said, citing data released this month from China's National Bureau of Statistics. "The data in July seemed to be supported by positive aspects of China's economy," said Song Yen Ling, Platts senior writer for China. Oil prices reclaimed the $104-a-barrel level Thursday after better-than-expected Chinese manufacturing data. October crude CLV3 +0.11% traded at $104.27 a barrel, up 42 cents, or 0.4%, on the New York Mercantile Exchange.

Asia Spot LNG Prices For September Rose 3.5%

Platts: Asia Spot LNG Prices For September Delivery Rose 3.5% Month-over-Month On Production Outages - dailymarkets | Monthly average prices of liquefied natural gas (LNG) for September delivery to Asia rose 3.5% from August to $16.005 per million British thermal units (/MMBtu), as production outages supported higher offers and bids, according to the latest monthly Platts Japan/Korea Marker (JKM) for month-ahead delivery. The monthly average Platts JKM for delivery in September was assessed over the period of July 16 to August 15. This marked the second consecutive month-over-month gain in the monthly average JKM. On a year-over-year basis, the average September JKM increased 18.4%. On a Year-over-Year basis, September Prices Were Up 18.4% Versus 2012

China could be the future of Arctic oil - Opinion - Al Jazeera English

China could be the future of Arctic oil - Al Jazeera | Though China does not have jurisdiction in the Arctic Ocean, it aims to be the power behind drilling for Arctic oil. The Arctic may contain 10-15 percent of the world's undiscovered oil reserves, with most of that oil located in the seabed of the Arctic Ocean. And China, thanks to its financial rather than military strength, could take the lion's share. The US Geological Survey estimates there are 90 billion barrels of conventional oil north of the Arctic Circle, enough to fuel the entire world for three years at current consumption rates.

Freight rail shipments decreased 16% (July vs June) - CRC

7月铁路货运环比下降16% - 中国贸易报 | July rail shipments decreased 16% vs. prior month, indicating that effectiveness of freight rail reform is falling short of what is needed. Household goods shipments (white goods) and distribution (LTL) business appears to have declined 20% after taking into account the slight month over month increase in oil, coal and grains volume. July volume of 259.79 million tonnes compared to June volume of 310.15 million tonnes was a 16.24% decrease. July 185.05 million tons of coal shipments, 11.69 million tons of oil, 8.57 millon tons of grain vs June coal of 182.14 million tons, oil of 11.62 million tons, and grain of 8.26 million tons - so these main categories of bulk commodities increased.　　中国铁路总公司（铁总）近日发布的数据显示，7月份，全国铁路货物发送量出现环比大幅下降，而从分项数据来看，作为铁路货运的主要货源，煤炭、石油、粮食价格7月环比却有小幅上升。也就是说，作为铁总货运组织改革重要抓手之一的白货和散货运量出现了大幅下降，铁路货运改革并未取得应有的效果。　　官方数据显示，1月至7月，全国铁路货运发送量完成225952万吨，其中货物发送量完成225486万吨，行包发送量完成466万吨。　　北交大运输学院教授胡思继分析，虽然上半年宏观经济形势不好，全国煤炭需求不旺，全社会用电量也停滞不前，以致于今年夏天并没有像往年那样出现拉闸限电的情况。"然而，煤炭运输毕竟还是铁路运输的最大货源，上述几个同比增幅较高的路局基本都在煤炭产区，它们通过改善服务、变革管理方式等手段还是增加了一定的货运量。"　　但从环比来看，7月份货运量下降明显。数据显示，7月份，国家铁路货物发送量达25979万吨，相比6月份31015万吨，下降了16.24%。　　从单项数据来看，7月份煤炭运量完成18505万吨，石油运量完成1169万吨，粮食运量完成857万吨，分别比6月份18214万吨、1162万吨、826万吨的数据小有增加。　　胡思继分析，在大宗物资运量增加的背景下，总货运量出现环比大幅下滑，说明剩余的白货和零散货的发送量下滑的幅度更大，接近两成。

Local govt speculators tie-up shale blocs in China - and wait to see what happens

页岩气圈地尴尬：圈而不探 圈而不采 - 能源网-中国能源报 Industry worries about shale property "control lock-up" is slowly becoming reality. China's shale policy is facing a test: at the end of this year or early next hopes to have 3rd auction of exploration rights. According to month-old reports from Ministry of Land, winners from first two auctions, many of them local govt-owned enterprises, are making slow or no progress; the Ministry threatens to claw back their rights and further inspect their progress. This delay appears to be because of a lack of expertise and unwillingness to risk capital on actual exploration and development. Some companies are taking a wait-and-see approach.　业界担忧的页岩气"圈地"问题，正在逐步成为现实。7月29日，国土资源部勘查司负责人对外表示，中标2012年度第二轮页岩气探矿权企业勘查进展不一，一些地方国有企业进展缓慢。国土资源部发出警示，对圈而不探甚至用区块圈钱且情节严重的，将缩减区块面积直至收回区块。这是主管部门首次对页岩气圈地问题的公开"喊话"。此前在6月底，国土资源部召集19个区块的中标企业在北京开会，对页岩气开发进度进行摸底，研讨工作推进缓慢的原因。国土资源部目前又在筹备第三轮页岩气招标，有望在今年年底或明年初进行。如何通过有效竞争，让页岩气开发进入快车道，页岩气开发政策正在面临着考验。

Lagging electrical grid development stranding power and delaying development in China's western regions

电网配套建设滞后 西部新能源疾进遭遇困局 - 能源网-中国能源报 Delay and lack of coordination in power grid development & east-bound ultra-high voltage transmission construction is frustrating major wind and PV power investments in the China's West (Gansu, Shaanxi, Ningxia, Qinghai, Xinjiang). One example: Yumen city in Gansu has already invested 17bn rmb in wind power and is only able to sell 60%-70% despite promises that it would be able to sell 100% due to massive solar development in nearby Dunhuang. Yumen is left trying to attract industries that consume lots of electricity, such as coal-chemicals and aluminum.　　在广袤的戈壁滩上，烈日和狂风成为如今西部地区发展新能源的优势资源。按照甘肃省的新能源发展规划，预计到2015年年底，风电装机将达到1700万千瓦，太阳能发电装机将达到600万千瓦以上。而目前，甘肃风电和光伏装机容量分别为640万千瓦和60万千瓦，弃电现象却严重困扰着企业的发展。　甘肃新能源是整个西部地区的缩影。在陕西、宁夏、青海、新疆等多个省，同样在规划着一轮新的大发展。然而电厂与电网的建设规划不一致，特别是特高压项目审批缓慢，让大铺摊子的西部新能源普遍面临着上网困难、大规模弃电现象。西部规划疾进  玉门市的风电发展规划，只是整个甘肃省新能源版图上的一部分。作为经济相对落后的内陆省份，甘肃正寄望将新能源产业作为拉动经济的新引擎。　玉门是中国第一个石油工业基地，然而随着石油资源日益枯竭，玉门的工业重心逐渐外移。2009年，玉门市被国务院列入第二批资源枯竭型城市名单。　"可以说，新能源产业已经是玉门市转型的支柱产业，现在仍在一个大规模的开发阶段。"玉门市能源局副局长史玉宝告诉记者， 玉门被称为"世界风口"，拥有丰富的风能资源，玉门市在新能源产业已经投资了170亿元。

China coal: a grimy outlook

China coal: a grimy outlook - FT (Lex) | Coal miners and their shareholders love it when the weather gets hot enough to fry an egg on the pavement. China's recent heatwave is one reason shares of its biggest coal miners have jumped a fifth even as coal prices have slid by nearly a tenth. But there is little reason to think the gains are much more than a mirage. ...Yanzhou Coal this week typified the industry's issues when it said it had sold 7 per cent more coal in the first half but that revenues had fallen a tenth. It also conceded, according to an analyst translation, that it can no longer rely on more coal producing greater profits. 

China's domestic thermal coal prices are bottoming

China's domestic thermal coal prices are bottoming - Platts (Ruth Chen Jonathan Dart) China's domestic thermal prices are bottoming due to increased coal demand and transactions, while local producers like China Coal and Shenhua are not expected to cut production, an analysts' report from UOBKayHian said Tuesday. The report also said that in January-July, China's total coal production fell 3.5% year on year to 2.1 billion mt. China Coal and Shenhua's coal production increased 6% and 2% year-on-year respectively, showing that low cost producers are not cutting production and would continue to gain from increasing their market share. Shenhua's coal sales were down by 27% to 33.1 million mt, compared to its coal production of 26 million mt last month.

Interfax China Nat Gas: Pipeline imports exceed LNG, Woodside FLNG, $2BN LNG ship order

China's piped imports outstrip LNG deliveries again in July - Interfax Tang Tian | China imported more pipeline gas than LNG in July, the sixth consecutive month piped imports were higher than those transported by sea, customs data showed on Wednesday.

Woodside targeting three FLNG facilities for Browse - Interfax Robert Sullivan | Woodside will use Shell's FLNG technology in the Browse project. Australia's Woodside Energy has outlined the development plans for its Browse LNG project in Western Australia (WA), after confirming this week the joint venture had decided on an FLNG option for the massive project. Browse will be pursued as a phased FLNG development, with up to three floating facilities planned, company management indicated in a results briefing on Wednesday.
Tianjin shipping firm to raise $2 bln for oil and LNG carriers - Interfax Li Xin | Tianjin Marine Shipping (TMS) intends to raise $1.96 billion from a private placement of shares on the Shanghai Stock Exchange to finance an order for 10 Very Large Crude Carriers and four LNG carriers.

China's July Iran crude imports drop, put it closer to 2013 goal

China's July Iran crude imports drop, put it closer to 2013 goal - Reuters | China's average daily crude imports from Iran fell 12.6 percent in July from the same month last year, putting it closer to hitting what officials have said is the likely goal for 2013 imports from the Middle Eastern nation. Last month's reductions mean China would have to reduce its year-to-date Iranian oil imports only about another 4,000 bpd to hit that unofficial target for this year. China and other Asian importers of Iranian crude have to keep reducing the shipments to win waivers to U.S. sanctions aimed at curbing the country's disputed nuclear programme. Top refiner Sinopec Corp, the world's single largest processor of Iranian crude, may make deeper cuts in the remaining months of the year to take its total cut this year to about 5 percent, according to a trading official familiar with the Chinese oil major's oil procurement strategy.

CNOOC on track to hit oil, gas output target

China's CNOOC on track to hit oil, gas output target - Reuters | China's top offshore oil explorer CNOOC Ltd, which acquired Canadian energy firm Nexen for $15.1 billion in February, said it is on track to meet its 2013 output target after posting a first-half profit that beat analyst estimates. CNOOC, once an investor darling for its high-growth profile, has been struggling to boost its output in the past few years as domestic fields age. The firm has spent heavily on more advanced technology to drill in deep-sea areas off the Chinese coast, expanded into unconventional energy such as oil sands and shale in North America, and acquired assets including Nexen - the biggest ever overseas corporate takeover by a Chinese company. State-controlled CNOOC said previously it aimed to produce 338 million-348 million barrels of oil equivalent (boe) this year, excluding Nexen's contribution, or growth of just up to 2 percent from 2012. First-half output rose 7.7 percent on year to 173.3 million boe, not including Nexen's production, according to a filing with the Hong Kong stock exchange on Tuesday.

Coal Prices Darken China's Economy - Michael Lelyveld Analysis

Coal Prices Darken China's Economy - RFA | An analysis by Michael Lelyveld A prolonged plunge in China's coal prices has created risks for the economy despite recent signs of improving growth. Average prices at the country's main Qinhuangdao coal port have fallen 10.7 percent since the start of the year, the official Xinhua news agency said. Prices had already dropped over 20 percent last year, according to the Bohai Rim Steam Coal Price Index, cited by state media reports. The slide from 800 yuan (U.S. $130.62) per ton at the start of 2012 to 565 yuan (U.S. $92.24) this month has dragged prices for China's main fuel to a five-year low. The decline may signal greater economic weakness than the official 7.5-percent growth rate in the second quarter, recorded by the National Bureau of Statistics (NBS). The price trend has also continued well into the third quarter, despite an NBS report showing stronger industrial output growth of 9.7 percent in July. After Break - Imports, Losses, Crisis, way forward 

China 2020 Oil Imports: $500BN, 9mmb/d acc. to WoodMac

Opposing trends in China, US crude imports to impact cost, trade flows: WoodMac - Platts |  China is expected to surpass the US as the world's largest oil importer by 2017, and the opposing trend of growing crude oil imports by China and falling imports by the US will affect inter-regional trade flows and the cost to both countries, consultants Wood Mackenzie said Tuesday. According to WoodMac's estimates, China will need to spend $500 billion on oil imports by 2020, while US spending on oil imports will fall to $160 billion by the same year. "By 2020, 70% of China's oil demand will come from imports. On the other hand, US import requirements will reduce due to tight oil production," said William Durbin, WoodMac Beijing-based president of global markets. From 2005 to 2020, China's oil imports will rise from 2.5 million b/d to 9.2 million b/d, while US imports will have fallen from a peak of 10.1 million b/d to 6.8 million b/d within the same period, WoodMac said. That translates to a 360% increase in China's crude oil imports and a 32% decline for the US. "It is important to note these opposing trends as it means the US is becoming more North America-centric for its supply needs and China more dependent on Middle East and OPEC crude," Durbin said, adding that OPEC suppliers, who traditionally focused on the US for crude sales, will be compelled to shift their focus to China. China's growth in import demand can largely be attributed to its domestic oil demand growth, driven by gasoline demand due to the near-exponential increase in personal auto vehicles and diesel demand related to commercial trucking as China's economy grows, WoodMac said.

Lack of refinery accord holds up landmark China-Afghan oil project | Reuters

Lack of refinery accord holds up landmark China-Afghan oil project - Reuters | Afghanistan's landmark oil project has ground to a halt and most Chinese staff have left the site less than a year after production first started because there is still no transit agreement in place to refine the oil, an employee and a government official said on Sunday. The venture between China National Petroleum Corporation (CNPC) International and its Afghan partner, Watan Oil and Gas, began producing oil in the Amu Darya basin in the north in October, providing a much needed confidence boost to investors eyeing the country's vast oil and mineral wealth. But equipment at the site had been locked up and about 16 Chinese workers had left, an employee at the project said on condition of anonymity as he is not authorised to speak to the media. The removal of staff was only a temporary measure to save money, according to Jalil Jumriany, policy director at the Ministry of Mines in Kabul. He said an agreement to refine the oil over the border in Uzbekistan was being negotiated. "We are waiting for a transit agreement with the Uzbek government," he said.

China Poised to Gain Control as Shipyard Shakeout Looms - Bloomberg

China Poised to Gain Control as Shipyard Shakeout Looms - Bloomberg | China grew into the world's leading shipbuilder over the last decade as hundreds of private yards opened to compete with state-run companies. Now, the government is poised to regain control as the industry heads for consolidation. The number of shipyards in China has swollen to 1,647, contributing to a global capacity glut. To stabilize the industry, one third to a half of the yards will probably have to disappear through acquisitions and closings, according to executives and analysts. State-run companies are at an advantage because they have easier access to credit to pay workers, buy raw materials and provide financing for clients. China State Shipbuilding Corp., China Shipbuilding Industry Corp. and other government-backed companies won three-quarters of all orders in the first half of this year. Though state companies may buy some private yards, many will likely have to close since their capacity isn't needed. "It's a lost cause for most of the private shipyards," said Park Moo Hyun, an analyst at E*Trade Securities Korea in Seoul. "The government and even the banks seem to have given up on trying to save some of the troubled private shipyards. What innovations can they come up with when they can't pay to keep their workers?" ... More than half of China's yards will have to be wound down to cut capacity, according to Ren Yuanlin, chairman of Yangzijiang Shipbuilding Holdings Ltd. (YZJSGD), the country's second-largest private vessel maker. Of the remainder, only 20 percent will be profitable, he said. China Association of the National Shipbuilding Industry said last month a third of the nation's yards face the danger of closure in about five years after failing to win orders.

Oil pipeline: Chinese team arriving to hold crucial talks – The Express Tribune

Oil pipeline: Chinese team arriving to hold crucial talks - Express Tribune Pakistan | The negotiations will be the follow-up to Prime Minister Nawaz Sharif's visit to Beijing in early July, when he floated the idea of constructing an oil pipeline from Gwadar Port to western China for the transport of oil. Pakistan and China are set to engage in crucial talks this week on laying an oil pipeline from Gwadar Port to western China – an attempt that will allow Beijing to diversify and speed up import of crude oil. A Chinese team is expected to reach Islamabad on August 22 to hold talks on energy issues including the oil pipeline, sources say. China had expressed interest in investing in Gwadar after Pakistan handed over control of the port to Beijing. ... "Crude oil processed and refined at the Gawdar oil refinery can be exported and transported to Urumqi through the shortest possible route – Dubai-Gwadar-Urumqi covering about 3,600 kilometers – by laying an oil pipeline through the envisaged energy corridor up to western China via Karakoram Highway and Khunjrab bypass," the official said. Hurdles in the way like high altitude, freezing temperatures and a difficult terrain can be overcome with the help of technological advancements. Many countries have successfully completed similar pipeline projects under extreme conditions and at high altitude such as Atacama gas pipeline, Trans-Alaska pipeline and Trans-Asia gas pipeline.

Fish Ecosystem on Yangtze River on Verge of Collapse - The Fish Site

Fish Ecosystem on Yangtze River on Verge of Collapse - thefishsite.com | Human activity along the upper reaches of the Yangtze River — such as building hydropower stations and excessive fishing — has pushed its aquatic ecosystem to the verge of collapse, a new report warns.Researchers suggested starting a fishing ban along the entire river and enacting a national law to protect the "mother river" of China, as its fishery resources are experiencing a severe recession. The number of fish in four major species has shrunk from more than 30 billion in the 1950s to less than 100 million, and the number of breeds has been reduced from 143 to 17, according to the report released by the Yangtze River Fishery Resources Committee under the Ministry of Agriculture and the World Wide Fund for Nature. he report is based on a 12-day scientific expedition in five provincial-level regions in June, in which 32 researchers from government agencies and NGOs participated.

Kenya signs infrastructure, energy deals worth $5 billion with China | BusinessDay

Kenya signs infrastructure, energy deals worth $5 billion with China | Kenya signed deals worth $5 billion with China on Monday to construct a railway line and an energy project, deepening ties with the Asian country keen to expand investment in Africa. The cash would be spent on energy projects, a standard gauge railway linking the port of Mombasa in east Africa's biggest economy to its border town of Malaba, meant to provide faster access from Kenya's port to markets in the region, the presidency's media service said in a statement on Monday. Reuters reports that the rest would be used to improve wildlife protection, in a country where well armed criminal gangs have killed elephants for tusks and rhinos for their horns that are often shipped mainly to China for use in ornaments and medicines. It was not specified whether the cash was a loan or grant, or whether this was all new money or part of a previously negotiated but unannounced package. The deals were agreed in Beijing after talks by Kenya's new President Uhuru Kenyatta and President Xi Jinping. Kenyatta is on a state visit to China scheduled from Sunday to Friday. During his first visit to Africa in March, Xi pledged to help the continent develop, responding to concerns that China is only interested in shipping out the continent's raw materials. ...Kenyatta urged China to invest in Kenya's newly discovered oil sector, power generation, a technology city near the capital city and a new port in Lamu, north of Mombasa.The $25.5 billion Lamu project would link landlocked South Sudan and Ethiopia to the Indian Ocean port of Lamu by constructing a major highway, a railway and an oil pipeline.

China’s polysilicon giant GCL to diversify into gas

China's polysilicon giant GCL to diversify into gas – report - Interfax | Golden Concord Holdings – the world's largest supplier of polysilicon for solar panels – plans to expand into China's oil and gas sector, as overcapacity and a collapse in global prices drive Chinese solar firms to seek new revenue streams, financial news portal Yicai.com has reported, citing unnamed company sources

Jinhong Energy to invest in LNG ship fuelling infrastructure

Jinhong Energy to invest in LNG ship fuelling infrastructure - Interfax | A subsidiary of Shenzhen Stock Exchange-listed PetroChina Jinhong Energy Investment has signed an agreement to invest RMB 600 million ($98 million) to develop LNG filling stations, real estate projects and a logistics park in a central Chinese city.

WA court’s blow to onshore Browse LNG hopes

WA court's blow to onshore Browse LNG hopes - Interfax Robert Sullivan | The WA Supreme Court's decision could push Woodside towards their FLNG or piped gas options. Western Australia's (WA's) Supreme Court has ruled the environmental approval for Woodside's proposed onshore Browse LNG project is illegal, dealing a further blow to WA premier Colin Barnett's plans for an onshore facility at James Price Point.Environmental advocacy group The Wilderness Society and Goolarabooloo elder Richard Hunter lodged an appeal against the decision after it emerged the report on the proposal by the state's environmental protection authority (EPA) had been prepared by just a single official, after four of the five EPA members assessing it were disqualified because of conflicts of interests. ...Although Woodside decided in April that an onshore facility at James Price Point for Browse would not be commercially feasible, the ruling appears to have compromised the WA premier's plans for an onshore gas hub on the Kimberly coast. The decision could also complicate the state government's attempts to purchase the land at the proposed project site to develop a supply base to service any future FLNG development of Browse.

Coal export market news Aug 20th - Pacific Export Mkt

Subject: Coal export market news Aug 20th

Pacific export coal market news remains uniformly pessimistic. Coal prices have been falling for the last year -- down 10% since Jan. 1 -- and no one is forecasting when they might rebound.

I read where one analyst (I forget which one) suggested that China may even begin exporting coal in the next year or two if trends continue. This opinion seems to be an outlier but indicative of the gradual re-evaluation taking place. Michael Lelyveld, below, writes how current Chinese energy demand is weaker than one might expect given headline GDP growth rates -- this could be because of slower than hoped for real growth or because the mix of industrial activity is shifting away from energy intensive industries many of which have excess capacity of 20% to 50%.  China has had a record heatwave, but has not had any of the expected brownouts or shortages because declines in industrial demand have left so much spare capacity. Additional solvency problems beyond that in Shenmu surfaced in the Chinese coal industry: a large trader in Guanghzhou went bust with more than $1bn USD in unrecoverable debt and concern is growing around a number of coal industry financial trusts worth more than $4BN USD. These trust products are part of the ill-regulated "shadow market" and their prior failure and system of cross-guarantees triggered what has been called China's "subprime crisis" in Wenzhou. The limited production cuts announced so far in Australia do not seem to be enough to reassure major producers. The devaluation of Australian dollar is helping Australian coal to remain competitive despite becoming a lower margin producer over the last 3-4 years. 

Sinopec coal project gets state backing

Sinopec coal project gets state backing despite of environmental concerns - SCMP | Sinopec Engineering, the plant construction arm of energy giant China Petrochemical, says orders for coal-to-chemical projects - its fastest-growing sales driver - are backed by the government despite carbon emissions and water scarcity concerns. "Our 101 billion yuan [HK$127.9 billion] of outstanding orders are backed by real contracts, and the projects have received various government approvals," said president Yan Shaochun. The company's net profit for the first half rose 10.8 per cent to 2.21 billion yuan. Since most of the mainland's coal resources are in the arid northern and northwestern regions, Yan said, the company was researching methods to cut pollution and water usage. He said present technology for converting methanol to chemicals was 9.5 per cent more efficient than the previous one. Methanol is the intermediate product in the conversion of coal into chemicals. Beijing is keen to use its ample coal resources to replace crude oil as a source of fuel and chemical feedstock. Mainland firms have successfully built projects to turn coal into liquid fuel and natural gas, although mass commercialisation is only beginning.The 101 billion yuan order backlog includes 29 billion yuan in coal chemical projects, 41 billion yuan crude oil-based petrochemical projects and 22.4 billion yuan oil refinery projects. The backlog increased by 33 per cent from the end of last year. First-half turnover grew 16.3 per cent from a year earlier to 19.6 billion yuan. Sales from the coal-to-chemicals segment jumped 65 per cent to 3.7 billion yuan. Yan said he expected the company to obtain the lion's share of a coal-to-natural gas conversion project, costing more than 200 billion yuan, led by its parent, China Petrochemical. A Citi research report said the project was being reviewed by the National Energy Administration, and orders were expected in next year's first quarter.

Yancoal Australia Posts Loss Amid Coal Glut - WSJ.com

Yancoal Australia Posts Loss Amid Coal Glut - WSJ | Yancoal Australia Ltd. posted a first-half loss and said there is little sign that the global coal glut is easing. The downbeat outlook came as Yancoal named Reinhold Schmidt, a former executive at Glencore Xstrata, as the Australian company's chief executive. He succeeds Murray Bailey, who stepped down in March from the company, which is controlled by one of China's biggest coal producers. "For both metallurgical and thermal coal markets to return to balance, the market will require production cuts from some producers," Yancoal said Monday. "At this stage, there is no sign of any production cuts so the outlook remains weak." . . . .Thermal-coal prices in Australia are now below US$80 a ton—about half the level of coal's 2008 peak. A weakening of the Australian dollar has helped producers to some extent, but hasn't entirely offset the decline in prices, said Yancoal. The company operates coal mines in New South Wales and Queensland states and has been cutting costs by using fewer contractors.The Australian dollar fell 14% against the U.S. currency between mid-April and the end of June.

China NDRC could lower electricity prices sooner than expected

电价最早10月下调 发改委已做初步方案 - 中国能源报 | NDRC has taken initial steps that could lead to lowering electricity prices before year's end. Since coal prices have not recovered (and continue to decline) coal producers and many local govts think this is a good opportunity to reform electricity price system. Local gov'ts want lower electric prices to stimulate heavy industry and promote econ development -- and in coal mining regions officials are worried about supporting struggling coal companies. Acc. to one expert, coal's elasticity of demand is less than 50%; GDP growth of 7% leads to coal increase of 2-3% - so a lower price would help demand grow a little faster in what coal producer's see as China's new low-growth phase. Arguing for delay in lowering prices, the electricity industry bloc says coal is 70 percent of cost of electricity and over recent years the price of coal has been higher than electricity -- so electric companies need time to recoup losses inflicted by past policy. The have high debt ratios (gt 80 percent and over the SAC warning line) and increasing environmental costs to carry. 煤价持续的大幅度降价，令政府不得不提前做出在年内调整电价的方案。　8月16日，记者从接近国家发改委的消息人士处获悉，国家发改委已经做出了年内调整电价的初步方案，在煤价没有回暖的情况下，最早今年10月将下调电价。　　与此同时，煤炭市场持续低迷，正是电力体制改革的好时机。电价最早10月下调　　持续大幅走跌的煤价让地方政府撑不住了，齐齐向国家发改委施压请求下调电价。　　8月中上旬，环渤海地区煤价继续保持偏大降幅，8月14日，海运煤炭网指数中心发布的环渤海动力煤价格指数显示：本期5500大卡动力煤综合平均价格报收为559元/吨，环比上周下跌6元/吨，跌幅为1.06%，同比下跌11%。　　煤炭行业专家李学刚认为，7月份我国煤炭进口量的急剧增加，再度冲击了沿海地区的内贸煤炭需求。　　持续下滑的煤价以及低迷的经济增速，让多地政府呼吁尽快启动煤电联动，下调电价，以便刺激工业用电，推动经济发展。　　消息人士向记者透露，由于煤价降幅太大，以及地方政府的施压，国家发改委为了保持煤电联动政策执行的严肃性，已经做出了年内调整电价的初步方案，在煤价没有回暖的情况下，最早今年10月将下调电价。　　中电(00002.HK)副主席阮苏少湄在中期业绩记者会上也表示，电价受多项因素影响，因此需要视乎下半年情况，决定年底是否调整电价。

Cheap Burma Gas Beats Onshore LNG in Southwest China

Myanmar gas imports expected to be cheaper than alternatives in southwest - Platts | China's imported gas supplies from Myanmar are expected to be cheaper than some existing sources in the local domestic markets in southwestern Yunnan and Guangxi provinces, despite being relatively more expensive than overall domestic Chinese gas, sources said Friday. This is because Yunnan and parts of Guangxi now use more expensive onshore LNG, which has to be liquefied from other domestic fields and trucked to end-users. ... customers' gas prices fell significantly when Guangxi province was connected to CNPC's Second West-East Pipeline earlier this year. ...ENN Energy, one of China's largest independent gas distributors, is now in talks with state-owned CNPC, which is in charge of the Myanmar gas imports, to conclude a gas sales contract to secure Myanmar gas supplies for its customers in Yunnan province, said spokeswoman Shirley Kwok. ...The wellhead price of Shwe gas at the first onshore gas processing station in western Myanmar is $8.60/MMBtu, Platts reported previously. This excludes an onshore tariff for the pipeline, which stretches nearly 800 kilometers across Myanmar before reaching the Chinese border. ...The central government raised citygate prices by more than 15% across China on July 10. The maximum citygate price -- or wholesale gas price sold by producers to gas distributors -- for Yunnan is now at Yuan 1.97/cu m for existing supply, while incremental supplies for non-residential users has been set at Yuan 2.85/ cu m.

Sichuan LNG producers slash prices

Sichuan LNG producers slash prices - Interfax Tang Tian | LNG producers in southwest China's Sichuan province have slashed their prices by more than 10% on average, after smaller-than-expected increases in the cost of the gas they buy from upstream suppliers, a Chinese energy consultancy told Interfax on Friday

China Damming Cambodia, Laos & Myanmar - $6.1BN in hydro finance

Chinese investments play large role in Southeast Asia hydroelectric growth - EIA | China has emerged as a key player in both financing and building the hydroelectric power infrastructure in Southeast Asia. China invested more than $6.1 billion between 2006 and 2011 in financing 2,729 megawatts (MW) of capacity additions. Between 2006 and 2011, Chinese investors—such as the state-owned enterprises Export Import Bank of China and China Development Bank—financed 46% of all hydroelectricity capacity additions in Cambodia, Laos, and Myanmar and developed previously untapped hydroelectric resources in countries bordering the Mekong and Irrawaddy river basins.

Can ENN, the first private investor in Chinese LNG imports, break the LNG Monopoly?

首座民企LNG加注站投建：新奥能否打破垄断 - 能源网-中国能源报 | Isn't there a journalistic law of sorts that states that questions in the headline will be answered with NO? Profile of ENN's desire to be first private company importing LNG. ENN subsidiary Xin Ao received preliminary approvals for a re-gasification plant and article has summary of efforts to attain supplies abroad and import to China including the need for foreign governments to give export license (mentions the cancellation of US-based Cheniere contract framework and says US a waste of time). Canada is good place where they are getting equity in pipelines and reserves in addition to long-term export cooperation. ...National Development and Reform Commission data show that the first half of the domestic natural gas production was 58.8 billion cubic meters, an increase of 9.0 percent; imports of natural gas (including LNG) or about 24.7 billion cubic meters, an increase of 24.6%; apparent consumption of natural gas 81.5 billion cubic meters, an increase of 13.1%.　舟山群岛本岛定海的东北岬角，新奥集团正计划投资47.5亿元建设国内首座民营企业LNG加注站。　　"这里面向舟山北航道，东出可直接进入国际水道，从而避开拥挤的南航道。"8月初的一天，舟山市发改委副调研员杨小毛指着海图告诉记者。　　此前，3月7日，国家能源局向河北省工商联副主席王玉锁旗下的新奥集团出具《关于同意浙江舟山国际航运船舶液化天然气（LNG）加注站项目开展前期工作的函》（国能油气【2013】99号，简称"99号文"），允许新奥集团可以围绕这个项目进行前期的准备工作。　　99号文意味着该公司开展液化天然气进口、转口、贸易和分销业务获得国家发改委的认可，而LNG加注站，将是未来新奥集团进口LNG业务的重要支点和平台。　　这是民营企业首次获准进入LNG进口领域，也是舟山转型的重要支点。新奥集团副总裁赵义峰等项目具体负责人因而四处奔波。面对千头万绪，他们丝毫不敢大意。　　国家发改委数据显示，今年上半年国内天然气产量为588亿立方米，增长9.0%；天然气进口量（含LNG）约合247亿立方米，增长24.6%；天然气表观消费量815亿立方米，增长13.1%。　　天然气对外依存度不断上升已是不争的事实，单纯由三大石油央企垄断进口环节的格局，已很难满足国内市场的需求。"允许一些有实力、有条件的社会资本进入应是大势所趋，新奥在舟山实现突破只是（这种趋势的）一个开始。"有国家能源局官员指出。　　与石油进口资质不同，LNG进口资质不但要跨越中国国内的重重审批，还需要得到资源出口国的许可。　　"根据中央政府的规定，在获得'99号文'前，新奥必须与外方签署LNG长期采购框架合同，并将这份合同提交国家能源局备案，"杨小毛说，"我看过新奥与加拿大某公司的LNG长期采购框架合同，它们的进口价格在国内市场是很有竞争力的。"

CNPC Losses from Importing Natural Gas Over last 2.5 yrs: 90 Billion Yuan

进口天然气赌局：中石油两年半亏900亿 - 第一财经日报 | Gambling on natural gas imports: CNPC over last 2.5 years has lost 90BN rmb on imports. "Despite industry insiders heralding the arrival of the golden age of natural gas, the light of the golden age hasn't been real for CNPC". Q2 nat gas import losses at least as high as Q1; large increase in pipeline-delivered nat gas imports, decrease in LNG imports. Starting in first half of 2011, getting hit by big losses on imports, especially on LNG. "中石油今年第二季度进口的管道天然气比第一季度有较大增幅，尽管LNG进口量有下滑，但其整个进口天然气的业务亏损额应该不会低于第一季度。"尽管业内纷纷高唱天然气黄金期已经到来，但对中石油来说，这黄金期的阳光却还没能照进现实。从中石油近几年发布的财报来看，其进口天然气大幅亏损的情况从2011年上半年就开始出现。市场人士分析，今年二季度中石油进口天然气的亏损仍会加剧，预计其进口天然气近两年半总共的亏损额接近千亿元。与此同时，中石油的天然气与管道板块的经营支出增幅已经连续四年超过了营业额增幅，该板块俨然成了中石油最沉重的负担。中石油巨额亏损的情况下为何仍然大量进口？(more after break)

Guangdong Coal Co Closes w/ 9Bn Rmb in unpaid loans

Guangdong Coal Company Suspends Operations on Bad Debts - Caixin | Lanyue Energy Development sees massive loan burden exceed 9 billion yuan. A large private coal company in Guangdong Province has suspended operations with at least 9 billion yuan in unpaid loans owed to local banks. Bankers from the branches of China Construction Bank, Bank of China and several smaller banks said they had been forced to classify loans to Lanyue Energy Development Co. Ltd. as non-performing. The loans total more than 9 billion yuan. The company deals primarily with coal mining companies in Shanxi Province and the Inner Mongolia Autonomous Region. It also imports coal from Vietnam, Australia and Indonesia. Its clients range from power plants and papermaking mills to cement producers and steel manufacturing companies, most of which are in the Pearl River Delta, a major economic hub in southern Guangdong. By Tian Lin

Australian coal industry in final stage of grief

Australian coal industry in final stage of grief - Reuters Clyde Russel | ...More worrying for producers is that the Newcastle price is now 44 per cent below its post-2008 recession high of $US136.30 a tonne, struck in January 2011. ...The problem for Australian miners is that at these prices many of them are struggling just to break even, and virtually no new project can proceed as the development costs exceed the potential revenue that can be earned. ... While longer term coal demand is slated to rise strongly on the back of new coal-fired power plants in China, India and elsewhere in Asia, for the foreseeable future coal prices are likely to remain relatively stagnant in real terms. This is because the cost of seaborne coal in Asia is largely being set by the cost of production in China, where imports meet around 6 per cent of total demand despite the nation being the world's largest importer. China's marginal cost of production for thermal coal is around $US80-$US100 a tonne, according to CLSA analyst Ian Roper. This likely puts a cap on how high coal prices can rise, as Roper points out that the Chinese are opportunistic importers, buying from overseas when the cost is below that of domestic supplies, but pulling back when it's cheaper to buy locally.

Gas sales from the 2nd West East Pipe boost profits at Shenzhen Gas

Gas sales from WEP II boost profits at Shenzhen Gas - Interfax | Shares of Shenzhen Gas closed lower by 0.62% on Thursday after a boost for investors when the city gas distributor reported net profit in H1 had jumped by 37.38% year on year to RMB 503 million ($82 million). Tang Tian - Volume already reported earlier on CEN.

Broken eqpt may delay Newfield’s China sale

Faulty equipment may delay Newfield's China asset sale - Interfax | the sale of United States independent Newfield Exploration's offshore assets in China may be delayed after an equipment failure suspended work at the company's Pearl development in the Pearl River Mouth Basin, the company said on Wednesday. Colin Shek

China’s first FRSU receives approval - Oil & Gas Journal

China's first FRSU receives approval - Oil & Gas Journal | Reported yesterday from other sources. China National Offshore Oil Corp. (CNOOC) last month received approval from the National Development and Reform Commission for the country's first LNG floating regasification and storage unit (FRSU), CNOOC reported on its web site. The vessel will be moored in the Nanjiang area of the Tianjiin port on Bohai Bay. The 2.2-million tonne/year Phase 1 will cost nearly $5.9 billion and, besides the FRSU, include storage and pipelines. An 11-mile, 40-in. gas pipeline will extend between Tianjin Nanjiang port and Lingang Economic Zone. Phase 2 will consist of a 6-million tpy land terminal (OGJ, Apr. 1, 2013, p. 90).

Rio Tinto Pokes Mongolia in the eye

Mongolian mine sacks 1,700 amid funding row - SCMP / Bloomberg | As many as 1,700 workers at Rio Tinto's US$6.6 billion Oyu Tolgoi copper and gold mining project in Mongolia, where shipments began last month, have been laid off amid a financing dispute. "This is a difficult time for everyone at Oyu Tolgoi but it is especially difficult for those who work on the underground mine," Oyu Tolgoi said. The lay-offs are a mix of contractors and employees. The action at Oyu Tolgoi, owned by Rio and the Mongolian government, follow months of disagreement between the two sides over how to share revenue from the mine. The lack of a decision has already hurt the Mongolian economy, with foreign direct investment down 43 per cent this year.

Tapping future shale gas opportunities in China

Tapping future shale gas opportunities in China - Interfax | Michel Brekelmans - a consultant: China's vast shale gas reserves and insatiable energy demand continue to capture the imagination of investors. However, China's shale gas industry remains in its infancy and the focus is still on resource studies and the development of exploration technology. It is now apparent industry progress is behind initial government targets.The speed of future industry development remains unclear because of several factors, including inexperienced Chinese players, complex geological conditions and restrictive foreign investment requirements. However, as the industry now waits for a third round of rights auctions – likely in late 2013 – interest is focusing on where possible opportunities may lie and how companies should be positioned to capitalise on expected future growth.

Next wave of Aussie LNG Projects Lagging

Contenders for next wave of Aussie LNG emerge - Interfax Robert Sullivan | Time appears to be running out for Australia's second wave of major LNG export projects – with options in the United States, Canada and East Africa emerging as more cost-competitive alternatives for Asian buyers. Over 60 mtpa of additional output has been proposed in the form of greenfield projects and brownfield expansions, but FIDs on some of these projects have been delayed or deferred, with high development costs raising questions about commercial viability. Australia is now facing its first year without a major LNG project FID since 2008. Furthermore, a 2013-2014 budget report from the Western Australian (WA) government last week indicated LNG investment in the state peaked last year and is forecast to drop over the mid-term, as there are not enough projects in the development pipeline to maintain spending at its current level.

China's first floating LNG project approved

CNOOC gets final approval for China's first floating LNG project - Platts | China National Offshore Oil Corp has received final government approval for its floating LNG project in China's eastern port city of Tianjin, the company said Wednesday. This will be China's first floating and regasification unit, with a total investment of Yuan 3.3 billion ($539 million) for the first phase, CNOOC said. The LNG import project received approval from the National Development and Reform Commission on July 26. The first phase of the project comprises a floating, storage and regasification unit, an accompanying berth and two 30,000 cubic meter storage tanks. It will have an LNG receiving capacity of 2.2 million mt/year, roughly equivalent to 3 billion cubic meters/year of natural gas, the company said. A second phase could see capacity expanded to at least 6 million mt/year, CNOOC said. It did not specify timelines for the commissioning or expansion. In April this year, CNOOC and France's GDF Suez formalized a 2011 agreement, under which GDF Suez will provide CNOOC with a floating vessel to receive LNG in Tianjin. GDF Suez's 145,000 cu m Cape Ann LNG regasification vessel will be sub-chartered by CNOOC from October this year for up to five years, the French company said then. GDF Suez also has a contract to deliver a total 2.6 million mt of LNG to CNOOC over 2013-2016. It is not clear if supplies have begun.

CNPC’s Tarim unit targets 22 bcm for 2013 - Interfax

CNPC's Tarim unit targets 22 bcm for 2013 - Interfax | China National Petroleum Corp. said on Wednesday that its subsidiary in the Tarim oilfield in the Xinjiang Uyghur Autonomous Region expects to produce 22 billion cubic metres of natural gas this year and 31 bcm by 2015.

Commissioning cargo due for Tangshan LNG in December

Commissioning cargo due for Tangshan in December - Interfax | China's Tangshan LNG facility is set to receive its first commissioning cargo on 1 December, sources close to the project have told Interfax.

Chongqing bullish on LNG cars

Chongqing government bullish over LNG vehicle prospects - Interfax | Chongqing in southwest China will have 10,000 LNG-powered vehicles on its roads by 2015, rising to 50,000 by 2020, according to a statement from the local branch of the National Development and Reform Commission .

Debt stress in raw materials - 100 mining trusts, 27bn rmb, 70 due this year

China slowdown exposes debt stress in raw materials - Reuters | China's slowing economy has hammered businesses supplying the raw materials for growth, with coal and aluminium firms at risk of defaults and closures after clocking up at least $490 billion of debt in a rush to expand. The debt mountain highlights the systemic threat posed by China's smokestack industries, which Beijing wants to slim down after a stimulus-fuelled investment boom launched in 2009.

Some recent data has raised hopes that China's economy is stabilising, but growth has slowed for nine straight quarters, piling pressure on these sprawling sectors, just as China has pushed banks to tighten credit to companies. (more below)

Rail Financing Reform Recommendations from Zhao Jian

Solving the Railway Financing Dilemma - Caixin | Current funding options are not working, meaning it is time for changes that can bring in trillions of yuan As excessive production capacity has been seen in many industries, the railway sector has become the major target for investment and is expected to support more steady growth. A July 24 State Council executive meeting even tackled the issue of railway investment reform. Yet the China Railway Corp. (CRC) was saddled with debt of 2.84 trillion yuan by March, unprofitable new railroads and costly projects. It must raise enormous funds to cover the operational deficits, service existing debt and pay for new projects. Where will the money come from?

Australia's Looming Natural Gas Surge

Rudd China Gloom Misses Australia's Looming Surge in Natural Gas - Bloomberg | Prime Minister Kevin Rudd's strategy of centering an election pitch on his ability to steer Australia through the end of a China-led minerals boom is overlooking the next big thing: natural gas. The Treasury two days ago forecast deeper budget deficits in the next three years as growth slows, unemployment rises and mining investment wanes, constraining Rudd and opposition leader Tony Abbott's election pledges. ...Ten gas projects across the nation -- three of which are operating and seven under construction -- will boost budget revenues by A$11 billion ($10 billion) a year from 2015 to 2025, according to estimates compiled by McKinsey & Co. Inc. The projects will add 2.6 percent to Australia's gross domestic product...Australia's LNG export earnings are projected to increase fivefold to A$61 billion through June 2018, according to the government's Bureau of Resources and Energy Economics. BG Group Plc's venture on the coast of Queensland state is due to begin in 2014, and Chevron Corp. (CVX)'s A$52 billion Gorgon project on Barrow Island off northwest Australia, the largest resources development in the nation's history, is scheduled to start delivering cargoes in early 2015.

Huge China coal plant shelved over pollution concerns : Renew Economy

Huge China coal plant shelved over pollution concerns | ... First, let's put this in perspective. In Europe or the U.S., a huge 2,000-megawatt coal power project (roughly the size of four average U.S. coal plants) next to a megacity of 10 million, would top the list of polluting power plant proposals and attract intense scrutiny. In China, which has continued to add an equivalent amount of capacity every few weeks, permitting a project like this half a year ago was still business as usual. It's what happened after the projects preparatory work got underway that bent the arc of history in China.
The 2,000-megawatt power plant was planned on the coast of South China Sea, 50 kilometers from the megacities of Shenzhen, population 10 million, and Hong Kong, population 7 million. Greenpeace estimated that the new power plant would cause 1,700 premature deaths over its operating life, despite being fitted with state-of-the-art SO2, NOx and particulate filters.

Photo Essay: Wuhai City Coal Complex Shows Costs of China’s Energy Demands

CHOKE POINT: Photo Essay: Wuhai City Coal Complex Shows Costs of China's Energy Demands - New Security Beat | The black, blasted landscape of Wuhai City sometimes looks more like the moon than Inner Mongolia. But this scene is becoming all too common across much of Northern China. China's massive coal industry is not only polluting the air and water, but also fundamentally altering the surrounding landscape and communities. By 2020, coal consumption in China is projected to increase by 30 percent, and already, 20 percent of water withdrawn in the country goes to coal mining, processing, and cooling of coal-fired power plants. The water intensity of the coal industry is a significant quandary for a country that is already facing a water scarcity crisis (water availability per capita is one-quarter the global average).

Angola LNG supplying liquid natural gas to China’s CNOOC group

Angola LNG supplying liquid natural gas to China's CNOOC group - Macau Hub | The China National Offshore Oil Corporation (CNOOC) will on 18 August receive the first shipment of liquid natural gas (LNG) from Angola, transported by the ship Cubal, which is able to carry 155,000 cubic metres. The Bloomberg agency reports that the ship was loaded at the Angola LNG terminal in Soyo on 14 July and is the first of two shipments to China. Bloomberg also mentions that CNOOC has LNG terminals in Guangdong, Shanghai, Fujian, Zhuhai and Ningbo, but does not indicate the Cubal's port of destination. 

100 Billion Yuan Mining Rights Dispute - 2bn tons of coal reserves

100 Billion Yuan Mining Rights Dispute - Caijing | Despite lacking the necessary financial strength and professional qualifications, Liu Juan was able to obtain project approval and operating funds for the Boluo project with the help of state-owned enterprises.

Mongolia to Rio Tinto: fund Oyu Tolgoi mine expansion with cash flow

Mongolia to Rio Tinto: fund Oyu Tolgoi mine expansion with cash flow - Bloomberg | Dispute with Rio Tinto over costs at copper and gold mine partly owned by Ulan Bator continues. Mongolia wants the planned US$5.1 billion expansion of Rio Tinto's Oyu Tolgoi mine to be financed from cash flow until a dispute over the cost of the biggest foreign investment in the country is resolved. Cost overruns at the copper and gold mine, 34 per cent owned by Mongolia, are increasing the debt the government owes to Rio's Turquoise Hill Resources unit, which operates the project, the minister of mining, Davaajav Gankhuyag, said on Friday.

'Unresolved Issues' Stopped Creation of Energy Ministry

'Unresolved Issues' Stopped Creation of Energy Ministry, Ex-NEA Head Says - Caixin | In an August 12 interview with state-backed People's Daily Online, Zhang Guobao, spoke about why an energy ministry was not included in the recent efforts to restructure the government, despite the hopes of many in the public that such an entity would strengthen supervision of the massive sector. ...For instance, energy issues involved partnerships with other countries, which would require the assistance of the Ministry of Foreign Affairs, Zhang said. Meanwhile, development of mining resources involves issues related to land management and the environment, which requires coordination with other authorities. Should a ministry come to pass, Zhang said, it should not be involved in managing prices for energy. "There must be an independent third party for setting prices," he said. ...Under government reform plan launched in March, the former electricity regulator, the State Electricity Regulatory Commission, was merged into the NEA. The latter is under the National Development and Reform Commission (NDRC), the country's top economic planner. The State Council, the country's cabinet, said the NEA will organize and implement a development strategy for the energy sector. It will also study and propose reform suggestions and supervise energy industries. The NEA has authority over project approvals, but price management is still partly controlled by the NDRC. Some have argued this has created a vague division of responsibilities for pricing supervision.

Jiangsu’s gas consumption up by 8.4% in July

Jiangsu's gas consumption up by 8.4% in July - Interfax | Tang Tian 13 August 2013 | Jiangsu's gas consumption in July increased by 8.4% from June, the first monthly rise in the eastern province's gas usage since February, according to data from the provincial branch of the National Development and Reform Commission (Jiangsu NDRC).

Beijing’s neighbours hesitate at pollution cuts

Beijing's neighbours hesitate at pollution cuts - China Dialogue | 09.08.2013 | A smog-plagued Beijing is showing more determination than ever to control coal burning, but for nearby provincial governments large cuts in energy consumption may be a step too far. The recent announcement of plans to lower air pollution levels in the next five years are far greater than any proposed before, some being several times tougher than those included in the 12th Five Year Plan (FYP) period, which was only finalised in 2012....Beijing started controlling coal use in 2011, and in 2012 said that it would aim to cut consumption to 15 million tonnes a year, compared to the 20 million tonnes goal in its 12th FYP. Beijing can afford to be confident. It has four pipelines from Shaanxi to ensure Beijingers have access to natural gas from the north-west, supplying both energy and winter heat. ...And after years of efforts, Beijing has relocated its power-hungry industries and mostly replaced coal use with natural gas. The MEP gave a plan for dealing with air pollution in Hebei to the provincial government for comment. By 2017, the province was to have reduced coal consumption by 100 million tonnes (of raw coal) on 2010 levels. ...ent wrote to the MEP, requesting that given the province's economic circumstances it be allowed to cut consumption by only 25 million tonnes of standard coal, or about 35 million tonnes of raw coal. That would put consumption in 2017 at about 315 million tonnes.

"No one wants migrants as neighbors" - the conflict underlying urbanization

China Urbanization Push to Hit Roadblocks Amid Local Opposition - Bloomberg | China's plan to encourage hundreds of millions of rural residents to settle in cities to boost growth faces opposition from local governments, according to Li Tie, an official with the country's top economic planning agency. Li spoke at an urbanization forum in Beijing where officials, researchers and company executives highlighted challenges. They cited the strain on local-government finances, the dangers of overbuilding and the cost of scrapping the hukou, or residence permit, system that denies migrants the welfare, health and education benefits of city dwellers.

Protests seen at Beijing's plan to add incinerators

Protests seen at Beijing's plan to add incinerators | South China Morning Post | The number of waste incinerators will rise sharply under a national plan to boost investment in environmental protection industries, but environmental activists warn the move could lead to more mass protests as the public grows increasingly concerned about health impacts. The State Council announced on Sunday the environmental sector would become a "pillar industry". It set a 15 per cent annual growth target for energy-saving and environmental protection industries that would see turnover reach 4.5 trillion yuan (HK$5.7 trillion) by 2015. ...Waste incineration is often associated with high emissions of dioxin gases, which are highly toxic and can cause reproductive and developmental problems, damage the immune system, interfere with hormones and cause cancer, according to the World Health Organisation. ...Residents living close to two incinerators, in Hangzhou and Guangzhou, were already blaming them for rising cancer rates, but the local governments had not launched public inquiries into the claims. "As long as authorities fail to address these public concerns, the new push for the industry may lead to more mass protests in the years to come," Chen said. Mao said the lack of adequate supervision of incinerators said big new investment in them could result in a surge in emissions of dioxins and heavy metals, such as mercury. Some studies already confirmed such a trend of rising dioxin emissions between 2004 and 2010. "This actually violates the nation's pledge under various international environmental treaties to gradually cut emissions of dioxin and mercury," Mao said.

China’s oil, gas investment hits $22 bln in first seven months (25% growth)

China's oil, gas investment hits $22 bln in first seven months - Interfax | Chinese companies continue to plough money in to the country's oil and gas sector, with fixed-asset investment (FAI) defying a slowdown in Asia's largest economy to grow by more than a quarter from a year ago, updated figures show.

China to open crude oil import market

China looks to further open crude oil import market - Reuters | China is considering opening up its crude import market to more refineries outside its dominant state giants, with quotas of at least 10 million tonnes being discussed for new entrants in 2014, according to traders and a government document seen by Reuters. Any new quotas would follow the entry this year by refinery operator ChemChina into the tightly controlled crude import market, and signal a further measured opening of crude purchases to smaller players as China prepares to add refining capacity....China imports about 5.7 million barrels per day (bpd) - nearly 6 percent of gobal supply - and this is expected to rise toward 9 million bpd by 2020, according to industry estimates ... Ten million tonnes is equivalent to about 200,000 bpd, and would represent an incremental step in opening up imports. ...China has kept tight control over crude imports to ensure stable domestic oil supply, with state giants Sinopec and PetroChina controlling nearly 90 percent of the country's total crude oil imports.

There's got to be something other than mines in Australia ...

In Australia, Signs of a Tilt in Economic Equilibrium - NYTimes.com |...If the appeal succeeds, the mine expansion will proceed as approved by the state last year. If it fails, it could set a precedent that favors the environmental interests of local communities over the economic interests of state governments. That would upend a system that has traditionally given primacy to the interests of large mining companies. "This is a wake-up call," Leslie Krey, 66, said in an interview at her house just outside the Bulga town center. "There's got to be something other than mines," added Ms. Krey, whose husband, John, is one of the leading campaigners against the mine's expansion.

Singapore beating China and Japan in race for Asian gas hub

Singapore leads race for Asian gas hub - Interfax | Singapore has moved ahead of competitors vying for position as Asia's leading gas hub; however, the city-state still has hurdles to overcome before its dominance can be assured. The Asian gas market is already the fastest growing in the world and should surpass European demand within two years, but it still has no regional benchmark price or globally recognised gas exchange because of the prevalence of oil indexation. ...Qatar's Doha Bank Group recently highlighted that Qatar is the largest trading partner of Singapore, which is "emerging as a strategically important hub for Qatar's exports to Asia".

Phillipines DOE warns on drilling near disputed waters

DOE warns Forum Energy on drilling near disputed waters - Phillippines ABS-CBN News | Energy Secretary Jericho Petilla cautioned an exploration company from proceeding with drilling operations after getting the nod of the Palawan Council for Sustainable Development to explore 880,000 hectares of seas, 80 nautical miles from Palawan for oil and natural gas. Forum Energy, partly owned by business tycoon Manny V. Pangilinan, had already obtained service contract 72 from the DOE covering areas near the Recto bank, an area also disputed by China. ...While Petilla maintained that Recto Bank is entirely within Philippine territory, it is not wise to commence drilling operation to avoid any untoward incidents.

China Takes a Keen Interest in Water-Energy Connections

China Takes a Keen Interest in Water-Energy Connections - Circle of Blue Keith Schneider | ...While introducing more than a dozen of his colleagues, Zhang Yongsheng, a senior research fellow and the deputy director general of a department in the Development Research Center, explained how the coal sector, which uses a fifth of the country's fresh water, is being buffeted by drying conditions. Zhang said the contest for the two resources was a focus of research and policy development that is steadily elevating in priority in the central government. ... Jia Yangwen, a vice director in the Institute of Water Resources and Hydropower Research, presented conclusions from his new research paper that confirmed our 2011 Choke Point: China data and went several steps further. Jia's paper calculated that by 2030, the water supply for northern China's coal-producing provinces would be short by 100 billion cubic meters of water annually.

Trade disputes hit solar export prices

Trade disputes hit solar export prices - Chinadaily | The value of China's solar exports fell by almost one-third in the first half of 2013 as trade disputes took a toll on prices, an industry group said on Friday. According to the Photovoltaic Product Branch of the China Chamber of Commerce for the Import and Export of Machinery and Electronic Products, the value of solar cell and module exports plunged 31 percent year-on-year to $6.5 billion in the first six months. Prices were down 41 percent, while export volume increased 17 percent, the organization said on its website on Friday. Shipments to the European Union fell about 58 percent, in contrast to a sharp rise in sales to Japan (up 150 percent), India (100 percent) and South Africa (2,200 percent). Solar panel sales to the EU reached 21 billion euros ($27.9 billion) last year. But after the EU initiated an anti-dumping probe into Chinese solar products starting in November 2012, many Chinese panel makers had to cut prices to garner orders in Europe. Li Junfeng, head of the China Renewable Energy Industry Association, which is under the National Development and Reform Commission, said the industry's biggest problem is still excess capacity. ... 90 percent of China's solar companies' production was exported in 2012, making the domestic market an ever-more important alternative.

Drought threatens production on five million hectares of China's farmland

Drought and heat take toll on China's crops - SCMP | Serious drought and a persistent heatwave in central and eastern regions threaten harvests from more than five million hectares of farmland, and have already caused vegetable prices to rise.The drought, which is worst in Hunan and Guizhou provinces, had also created a drinking water shortage for more than five million people and more than two million head of livestock, the Office of the State Flood Control and Drought Relief Headquarters said yesterday.

PetroChina, Sinopec et al required to reveal payments made to overseas governments

EU anti-corruption laws will hit Chinese companies overseas - chinadialogue | The European Union's Accounting and Transparency Directives, voted into law in June, obliges EU-listed and large EU-headquartered oil, gas, mining and logging firms to publish details of all financial payments of €100,000 and above, made to governments around the world including taxes, royalties and license fees, on a project-by-project basis. Taken together with a similar law introduced in the US in July 2010, these mandatory reporting standards cover around 70% of the value of the global listed extractive industries, ushering in a new era of transparency in the global extractives sector. This new wave of new transparency obligations looks set to expand into other jurisdictions. For example, Canada – home to over 2,000 extractive companies operating in more than 100 countries worldwide – has publicly committed to enacting similar requirements. These laws are significant for several major Chinese companies, such as PetroChina, Sinopec and Aluminium Corporation of China, who will now be required to comply as a condition of their listing on European and US stock exchanges. In addition, European and US-listed companies operating domestically in China will be obliged to publish what they pay to the Chinese government.

China to Become Biggest Net Oil Importer by October - next year will import 6.6 mmbpd

China to Become Biggest Net Oil Importer by October, EIA Says -Bloomberg | Imports by the second-biggest oil-consuming country will reach 6.45 million barrels a day, surpassing the U.S.'s 6.23 million, the EIA, the Energy Department's statistical arm, said in this week's Short-Term Energy Outlook. On a yearly basis, China's overseas purchases will surpass the U.S.'s next year. "The imminent emergence of China as the world's largest net oil importer has been driven by steady growth in Chinese demand, increased oil production in the United States and a flat level of demand for oil in the U.S. market," the agency said today in a report on its website. China will use 11 million barrels a day of oil in October, the outlook showed. The U.S. will use 18.6 million....Net Chinese imports will be 6.57 million barrels a day next year, higher than the U.S.'s 5.71 million, EIA data showed.

2013 1st Half Energy consumption per unit of GDP declined 3.4%

节能减排取得新成效 上半年单位GDP能耗下降3.4% - 证券日报 Energy Conservation Emission Reduction obtained a new result: 1st half of 2013 energy consumption per unit of GDP declined 3.4%. Also: S02 and NOx emissions went down. Riddle: How much is due to change in mix (decline) of energy intensive industries in GDP and how much is due to true improvement in efficiency?　为确保实现今年节能减排目标、推进绿色低碳发展，并为实现"十二五"目标奠定良好基础。8月9日，国家发改委发布通知，要求进一步加大工作力度，深入推进节能减排和应对气候变化各项工作。　　国家发改委要求开展循环经济"十百千"示范行动，启动循环经济示范城市（县）创建活动，开展国家"城市矿产"示范基地、餐厨废弃物资源化利用试点，以及园区循环化改造。深入推进资源综合利用"双百工程"建设。　　国家发改委同时提出加强节能市场机制建设。继续加大合同能源管理项目资金支持力度，实施能效"领跑者"制度，加强节能标准制修订工作。加大高效节能产品推广力度，推广高效照明产品1.3亿只、高效电动机500万千瓦。　　据相关负责人透露，上半年，单位GDP能耗下降3.4%，化学需氧量、二氧化硫、氨氮、氮氧化物排放量同比继续减少。

NDRC: Conservation Industry to grow faster than 15% reach 4.5 Trillion Rmb

发改委：2015年节能环保产业总值达4.5万元 - 证券时报网 | NDRC: Energy Saving and Environmental Protection to grow faster than 15% per year, become a pillar of the economy and reach 4.5 trillion rmb industry size by 2015. 为实现节能减排目标奠定坚实的物质基础和技术保障。"十二五"期间，节能环保产业产值年均增速要达到15%以上，2015年总产值达到4.5万亿元，成为国民经济新的支柱产业。国家发改委9日表示，节能减排产业发展潜力巨大，目前发改委正按国务院总体部署，加快发展节能环保产业，围绕市场应用广、节能减排潜力大、需求带动效应明显的重点领域，加快相关技术装备的研发、推广和产业化，加快实施节能环保重点工程，加大节能环保产品推广力度，提高节能环保产业竞争力。 据上海证券报报道，发改委表示，今年以来，各地区、各部门采取一系列政策措施，在推动节能减排、促进绿色低碳发展方面取得了新的进展。

Gas meets 8% of energy demand in Shenzhen due to West-East Pipeline II

Shenzhen's gas consumption lifted by supply from WEP II - Interfax | Gas is now meeting 8% of energy demand in the southern Chinese city of Shenzhen, up from 5.3% a year ago when the second West-East Pipeline (WEP II) began supplying the special economic zone with gas from Turkmenistan, PetroChina said on Wednesday.

China Railway Corp to increase this year's investment to 660BN RMB

铁总追加固定资产投资至6600亿 铁路建设再提速 - 上海证券报 | China rail increasing fixed asset investment will increase 10BN Rmb to 660 Bn RMB with the increase going to increase basic infrastructure investment for this year to 530BN. Track length for 2013 will increase 5500km, with network surpassing 100,000km, high speed rail will pass 10,000km. 记者8日从中国铁路总公司获悉，铁路总公司确认将追加今年固定资产投资，新增铁路营业里程也将有所增长。追加后，全年计划安排固定资产投资6600亿元，其中基本建设投资5300亿元。预计到年底，新增铁路营业里程5500公里，全国铁路营业里程将突破10万公里，高速铁路里程将突破1万公里。值得关注的是，这是中国铁路总公司成立以来，首次明确对外表示对铁路投资的增加，预示着铁路建设提速已板上钉钉。

NDRC publishes China midstream gas and pipeline liberalization policy guidelines

China makes start on midstream liberalisation - Interfax | A consultation document from the National Energy Administration (NEA) outlining plans to open up China's midstream gas market has been met with cautious optimism by experts, who believe the move is a positive step towards mobilising the country's gas resources. The guidelines – published by the National Development and Reform Commission (NDRC) on 2 August and open for consultation until 16 August – present a framework for opening up a segment of China's gas chain that has previously been dominated by China National Petroleum Corp. (CNPC) and Sinopec. ...The guidelines from the NEA cover a broad spectrum of the midstream gas infrastructure – including gas transmission pipelines, LNG terminals, gas liquefaction facilities and storage. ...China's gas pipeline network is projected to reach 150,000 km by 2020 before doubling to 300,000 km by 2030. But with construction lagging behind demand that has grown rapidly with the domestic economy, private capital is expected to play a key role in overcoming the infrastructure deficit. (more after break)

China to build coal plant in Balochistan

Coal based plant to overcome crisis between China and Pakistan - Steelguru |Dr Samar Mubarikmand renowned scientist said that the agreement between China and Pakistan to build a coal based power plant at Gadani in Balochistan was a step forward to overcome power shortages in the country.

US–Vietnam partnership - South China Sea; TPP; Human Rights

The US–Vietnam comprehensive partnership: key issues and implications - East Asia Forum | On 25 July President Truong Tan Sang had his first official White House visit, where both leaders announced the establishment of the new US–Vietnam comprehensive partnership. The diplomatic venture looks at three central issues: Vietnam's intensifying rivalry with China over the South China Sea, its gloomy economic conditions, and the communist regime's human rights record.

Mongolia Coal Export Policy - Interview with Director of Mongolia Coal Association

L.Davaatsedev: Stopping coal export until coal prices rise is bad policy - UB Post | Below is an interview with the Director of the administrative board of the Mongolian Coal Association, L.Davaatsedev, about Mongolian coal export. Mongolia is expected to export over 30 million tons of coal this year. However, coal export companies have been operating at a deficit and have closed temporarily because of coal's low market price. What's the current state of coal export? -Mongolia exported 20 million tons of coal in 2011.

Global lenders refuse to finance coal plants

Coal at Risk as Global Lenders Drop Financing on Climate - Bloomberg | The world's richest nations, moving to combat global warming, are cutting government support for new coal-burning power plants in developing countries, dealing a blow to the world's dominant source of electricity. First it was President Barack Obama pledging in June that the government would no longer finance overseas coal plants through the U.S. Export-Import Bank. Next it was the World Bank, then the European Investment Bank, dropping support ...Among the three government-backed lenders, the World Bank has provided $6.26 billion for coal-related projects over the past five years, according to data from Oil Change International. The Ex-Im bank provided more than $1.4 billion to two coal projects, one in South Africa and another in India.

Coal-fired plant canceled in Shenzhen

China cancels planned coal-fired plant - Electric Light & Power | Authorities in Baguang, eastern Shenzhen, China asked Shenzhen Energy Group to stop preparatory work for the construction a new coal-fired power plant. Furthermore, the city will not put forward any new plans to build coal power plants in the future, according to decisions made at an executive meeting of the municipal government August 1. Shenzhen Energy Group said it would choose a suitable site outside of Shenzhen for the construction of the new power plant. Since China's National Energy Administration gave its go-ahead for the coal power plant project to begin preliminary work in January, the plan has received strong public opposition over air pollution concerns. In June, 43 Shenzhen lawmakers headed by Zheng Xueding called for the cancellation of the project and objected to any new plans to build coal power plants anywhere in Shenzhen.

Heatwave leads to simplified coal import procedures

Heatwave leads to simplified coal import procedures (Xinhua) -- East China's Ningbo Customs has simplified clearance procedures for thermal coal imports as a persistent heatwave is exacerbating the power crunch in the region, according to the General Administration of Customs (GAC).Ningbo Customs has opened a separate window dedicated to thermal coal in order to help speed up clearances, a GAC statement said.Meanwhile, customs tracks bulk cargo through prior declarations and discharges them immediately after they arrive on shore, which saves time for power plants, the statement said.The entire clearance process for thermal coal takes less than 24 hours, according to traders.Ningbo customs has released a total of 2.6 million tonnes of coal since June, according to customs data.Power consumption has increased in the region, with extra use of air conditioning units and longer trading hours at shops during the summer.China is the world's largest producer and consumer of coal, with official data showing the country's coal production reached 3.65 billion tonnes in 2012.

Pummeled by Proliferation of Polluting Industries in Surrounding Provinces - Alliterating Beijing's Environmental Woes

Pollution-free days of Beijing Olympics now just a happy memory - SCMP | The sunny days of August 2008 are just a happy memory. Five years on, face masks are a regular sight in the capital to battle an 'airpocalypse'. Fang Li said "the good air quality during the Olympic Games would be our long-term goal", while admitting that the city faced renewed challenges to curb air pollution as its population grew and the number of vehicles increased. Greenpeace's Li said Beijing's environment had been pummeled by the effects of a proliferation of polluting industries in surrounding provinces in the past five years.

Working Day and Night to Increase the Population of Mongolia

A Wild Ride Through Mongolia's Resource Boom - Circle of Blue | A huge country with a tiny population navigates the problems of modern development. ULAN BATOR — A hard rock and coal mining boom that really got rolling about a decade ago is literally leaving Mongolia's capital in the dust. ...Enkhtuya Oidou, the Nature Conservancy's Mongolia program director and an American-educated economist, told me today that Mongolia also lays claim to developing the world's first national park in 1778, under the country's religious leadership, to safeguard Bogd Khan mountain and the high forested mountain range that flanks Ulan Bator's southern boundary. Though history scholars in the U.S. could argue the point, that's still almost a century before Yellowstone National Park was established by Congress in 1872. Yellowstone is commonly regarded as the world's first national park. ...Orchibat Chuluunbat, the 55-year-old deputy minister for economic development and a veteran banker trained in the Soviet Union, said that mines and mine-related activity accounts for half of Mongolia's $10 billion annual economy, and half of the $4 billion national government's revenue. When I asked him about how much priority the government gives to managing the water used by the mines, Chuluunbat said that issue is gaining higher priority. He also said Mongolia needs to do a better job of quantifying national water supply, as well as water use by the mining industry. ...He closed by noting that Mongolia needs more people. "We work hard to increase the population," he said, smiling, "day…and night."

"Pay respect to the temperature warrior."

"Temperature warriors" take on China's heat wave - Danwei |... Now, the Zhejiang, Jiaxing-based Nanhu Evening News has given a face to the fight against the heatwave facing China. The front page of this newspaper is dominated by a photograph of a man in a boiler suit with his arms dangling down a manhole. The headline below demands that people "Pay respect to the temperature warrior."

China and India 'water grab' dams put ecology of Himalayas in danger

China and India 'water grab' dams put ecology of Himalayas in danger - The Guardian | More than 400 hydroelectric schemes are planned in the mountain region, which could be a disaster for the environment....China has plans for around 100 dams to generate a similar amount of power from major rivers rising in Tibet. A further 60 or more dams are being planned for the Mekong river which also rises in Tibet and flows south through south-east Asia. (more after break)

Natural Gas Central to China vs Philippine Dispute over Panatag and Ayungin Shoals (20 TCF)

The China watch _ Opinion, The Philippine Star /...China continues to claim two Philippine-held areas: the Panatag Shaols located only 124 nautical miles from Zambales and the Ayungin Shaol located only 106 nautical miles from Palawan. ...Whoever controls Ayungin can control the path to the Recto Bank. According to a Philex Petroleum report released last year, a seismic survey of the Recto Bank indicates probable reserves of 4.666 trillion cubic feet of natural gas. A survey by Forum Energy of London has noted that another interpretation of the same data by Weatherford Petroleum Consultants said the prospective reserves could reach as high as 16.612 to 20 trillion cubic feet of natural gas.The Philippines presently has only one domestic source of natural gas which is Malampaya located northeast of the Recto Bank. Malampaya, at the start of operations in 2002, had natural gas reserves of 3.7 trillion cubic feet. It was scheduled to provide gas supply for 20 years to power plants with a capacity of 2,700 megawatts. In ten years Malampaya will run out of natural gas.