Energy Insider: Provinces Hike Electricity Rates Amid Rising Costs
In today’s Caixin energy news wrap: China makes unprecedented move to rein in oil prices; a Jiangsu refiner wins crude import quota; Sinopec’s gas sales rise 17.6%; and the country is pushing pumped energy storage projects.
Provinces raise electricity prices
Several southern China provinces including Guangdong, Guangxi and Guizhou raised electricity rates for peak hours to ease pressure on generators amid tightening supply and surging coal prices. Last week, several Beijing power suppliers asked the municipal government to withdraw electricity purchase contracts for the fourth quarter. The companies said they are unlikely to fulfill the contracts due to high costs.
China accelerates building pumped energy storage projects
China set a target to double hydro pumped hydro energy storage capacity to 62 million kilowatts over the next five years. umped hydro can allow clean electricity to be stored by using it to move water uphill when it’s sunny or windy, and later letting gravity bring the water back down through turbines. According to a plan issued Thursday by the National Energy Administration, China will ease controls on new pumped storage projects and back leading players with advanced technology and management expertise in the sector. By the end of 2030, total pumped storage capacity is expected to reach 120 million kilowatts.
China opens crude reserves to stabilize prices
China made an unprecedented intervention in the global oil market, releasing crude from its strategic reserve for the first time with the explicit aim of lowering prices. In a statement late Thursday, the National Food and Strategic Reserves Administration said China tapped its giant oil reserves to “to ease the pressure of rising raw material prices.” It didn’t offer further details, but people familiar with the matter said the statement referred to millions of barrels the government offered in mid-July.
Shenghong Refining & Chemical wins crude import quota
Jiangsu Eastern Shenghong Co. Ltd. (000301.SZ ), a petrochemical company based in East China’s Jiangsu province, said its subsidiary Shenghong Refining & Chemical (Lianyungang) Co. Ltd. was approved by the National Development and Reform Commission to import 16 million tons of crude a year for its chemical and refinery integrated project.
Tengyuan Cobalt to debut on Shenzhen’s ChiNext board
Xiamen Tungsten Co. Ltd（ 600549.SH ) said the ChiNext board of the Shenzhen Stock Exchange approved Ganzhou Tengyuan Cobalt New Material Co. Ltd. to make a 2.2 billion yuan ($340 million) initial public offering. Tengyuan Cobalt is mainly engaged in the research, development, manufacturing and sale of cobalt and copper products. Xiamen Tungsten now holds about 12% of the company. Jiangxi Ganfeng Lithium Co. Ltd., the leading lithium producer, holds 7%.
Sinopec’s gas sales rise 17.6% in first half
State-owned energy giant Sinopec reported that natural gas sales in the first half reached 96.3 billion cubic meters, up 17.6% year-on-year. The company is working to ensure gas supply this winter. Several new reservoirs and LNG projects are under construction to expand total storage capacity and improve peak load management.
CSG to build new photovoltaic industrial park
CSG Holding Ltd.（ 000012.SZ ), a leader in China’s energy-saving glass business, said it will invest 5 billion yuan ($780 million) to build an industrial park specializing in photovoltaics. The first-phase project includes two solar panel glass production lines with total capacity of 2,400 tons per day, a 2.5 gigawatt (GW) photovoltaic elements production line, and a 700 tons-a-day production line for electronic and photoelectronic glass.
Contact editors Han Wei (email@example.com) and Bob Simison (firstname.lastname@example.org)
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