When Fossil Fuels Become Like Gold

The National Development and Reform Commision (NDRC) and National Energy Agency (NEA) have given approval for development of a zone devoted to the mining and transport of coal, oil and natural gas deposits in what has been dubbed “A Golden Zone”.

The zone reaches from energy-rich regions of Yulin city in north Shaanxi province to Ordos in southwestern Inner Mongolia and on to the Ningdong energy and chemical base in Ningxia Hui autonomous region.

The zone covers nine cities and areas in Shaanxi and Gansu provinces and the Ningxia Hui and Inner Mongolia autonomous regions and spreads over 240,000-square kilometers. More than 20-percent of China’s primary energy came from the region in 2010.

By 2020, coal production in the zone will total 1.45 billion tons, while oil output will reach 54 million tons and that of natural gas will stand at 55 billion cubic meters.

The Ningxia Autonomous region in particular is keen to develop an economic zone along the Yellow River, according to The Securities Times. The economic zone along the Yellow River will help transport the coal from Xinjiang to Ningxia and lay the groundwork for importing oil and natural gas from the Middle East and Central Asia.

Source: China Daily