Coal Reserve Bases Picking Up in China
May 18, 2011 No CommentsChina National Radio reported that officials from the China Coal Transport & Distribution Association claimed that China will release the second and third batches of emergency coal reserves. Currently the total excess volume stored is approximately 20 million tonnes.
Recently, the State Council approved the first batch of 5 million tonnes of coal reserves, which was allocated to ten large coal and power enterprises including Shenhua, as well as eight ports such as Qinhuangdao, Huanghua, etc.
Officials say that in contrast with strategic reserves, emergency coal reserves can be bought and sold, as long as the required volume is ensured.
Experts said that the volume is insignificant compared to China’s annual consumption of 3 billion tonnes of coal.
According to a recent report, 500 million tonnes of coal is transported from northern to southern China each year. The batches can take up to three days to deliver. Meanwhile, some areas such as Beijing, Shanxi, Shandong, Hubei, Jiangsu, Anhui and Liaoning, have planned to build coal reserve bases.
By Victor Wu
Source: EN SX Coal
Image Credit: Clean Technica
Coal, Deals, Energy Policy