Energy Insider: State Council Calls Out Commodity Price Rise Twice in a Week
In today’s Caixin energy news wrap: Premier Li Keqiang calls for guaranteeing commodity supply and price stability; China unveils three new regulations for the carbon market; DCE revises iron ore futures rules; Jakarta-Bandung high-speed railway to open next year.
State Council calls for stability in commodity prices
Led by Premier Li Keqiang, the State Council called for stability in commodity prices in an executive meeting May 19. It was the second time in seven days that China’s cabinet called out commodity prices. A week earlier, the body set tracking and analysis requirements for domestic and overseas markets in response to surging prices of raw materials.
Three new regulations for the carbon market
The Ministry of Ecology and Environment issued three sets of rules May 19 on carbon emissions registration, trading and settlement. Under the rules, carbon emissions quota will be traded on the national carbon. The ministry may introduce other products. Trading will be based on the price per ton of carbon dioxide equivalent, with the minimum declared unit at one ton of carbon dioxide equivalent and the minimum declared price at 0.01 yuan ($0.008).
DCE releases revision of iron ore futures contract and rules
The Dalian Commodity Exchange (DCE) issued modifications Wednesday for iron ore futures contracts and rules. The standard ore grade for iron ore futures was reduced from 62% of iron content in ore to 61%. The exchange also plans to regularly alter allowances for quality differences of substitute products, weakening premiums and discounts for deliverable iron ore brands to help stay in sync with the spot market amid big price fluctuations.
China establishes oil and gas methane alliance
The conference to establish the China Oil and Gas Methane Alliance was held May 18 in Beijing. The alliance consists of seven members: China Petrochemical Corp., China National Petroleum Corp., China National Offshore Oil Corp., China Oil & Gas Pipeline Network Corp., Beijing Gas Group Co. Ltd., China Resources Gas Group Ltd. and ENN Energy Holdings Ltd. Members will work to incorporate methane into carbon emissions reduction plans, aiming for an average methane emissions intensity in natural gas production of less than 0.25% by 2025.
Indonesia to open Jakarta-Bandung high-speed railway next year
The construction of the Jakarta-Bandung High-Speed Railway — China’s first overseas high-speed rail project— is now 73% complete. Indonesian President Joko Widodo said he hopes the railway will be operational by the end of 2022. With a length of 142 km and design speed of 350 kph, it will be Indonesia’s first high-speed rail line. It will connect the capital Jakarta to Bandung, the country’s third-largest city.
Construction approved for 4 nuclear power units
China National Nuclear Power Co. Ltd. (601985.SH) won approval for the construction of the proposed No. 7 and No. 8 nuclear power units at the Tianwan Nuclear Power Plant in Jiangsu province and the No. 3 and No. 4 units at the Xudabao Nuclear Power Plant in Liaoning province, the company said Wednesday. The four units have a single unit capacity of 1,274 megawatts and a designed service life of 60 years.
Inner Mongolia sets up platform to report illegal crypto mining projects
Inner Mongolia, as one of the major provinces providing computing power for Bitcoin mining, set up a platform to report illegal virtual-currency mining projects, which consume vast amounts of energy. The local economic planning agency is encouraging people to submit information about any company or activity involved in cryptocurrency mining, including companies disguising themselves as data centers to benefit from preferential policies on tax, land and electricity prices, businesses that provide services to mines, and companies that obtain electricity illegally for the purposes of cryptocurrency mining.
Qingdao Tianneng Heavy to construct phase II of offshore wind project
Qingdao Tianneng Heavy Industries Co. Ltd. (300569.SZ) signed a strategic cooperation framework agreement with the government of Lufeng, Guangdong province, to build its phase II offshore wind power project, the company said Wednesday. The initially investment comes to 2 billion yuan ($310.8 million), and the project is expected to reach completion in three years.
China deploys offshore oil production rig in South China Sea
China’s largest independently designed and constructed offshore crude oil production platform — Lufeng 14-4 central platform operated by China National Offshore Oil Corp. (CNOOC) — completed its float-over installation in the eastern part of the South China Sea. The platform is expected to be put into operation by the end of 2021, said Gao Shuang, general manager of CNOOC’s Lufeng oil field group’s regional development project. It will provide more oil and gas resources for the Guangdong-Hong Kong-Macau Greater Bay Area.
Shanghai Electric Wind Power Equipment debuts on STAR Market
The shares of Shanghai Electric Wind Power Group Co. Ltd. (688660.SH) debuted Wednesday on the Shanghai Stock Exchange’s STAR Market. Shanghai Electric Wind Power is a holding subsidiary of Shanghai Electric Group Co. Ltd. Through the IPO, Shanghai Electric Wind Power will be able to pour more investment into the development of core technologies in the wind power industry, strengthening and expanding the sector.
Steel prices increase pressure on china’s shipbuilding industry
The climbing price of steel is putting the shipbuilding industry under heavy cost pressure. Reporting earnings Tuesday, China State Shipbuilding Corp. Ltd. (600150.SH) said increases in the cost of shipbuilding itself are negligible in comparison with the sharp rise in steel price. The price of steel plate has risen by more than 20% since the end of 2020, which is likely to hurt the profitability of the shipbuilder’s main business, the company said.
BP, Didi charging stations realize carbon neutrality
BP Xiaoju New Energy (Shenzhen) Co. Ltd. — a joint venture of BP Plc and Didi Chuxing — reached carbon neutrality in its charging business, BP said Wednesday. Carbon-neutral charging will be provided to all China customers using the BP Xiaoju Charging Network. This is the first carbon-neutral charging product launched in China to meet both domestic and international carbon neutrality standards.
Jiangsu’s first zero-carbon technology industry park opens in Wuxi
Jiangsu province opened its first zero-carbon themed technology industry park in Wuxi. The park plans to introduce more than 1,000 sci-tech enterprises in the field of zero-emissions and to cultivate 20 comprehensive service platforms for energy custody and carbon asset management by 2025.
Contact reporter Denise Jia (firstname.lastname@example.org) and editor Bob Simison (email@example.com)
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