Energy Insider: State Grid Secures Power Supply Amid Energy Shortage
In today’s Caixin energy news wrap: China to establish standards for emission reductions; one killed in landslide at Shaanxi gold mine; China’s LPG prices rise during national day holiday; Inner Mongolia increases power prices for energy-intensive industries; Shenzhen Nanshan Power reports $7 million loss in first three quarters.
State Grid secures power supply amid energy shortage
State Grid Corp. of China stressed the importance of securing electricity supplies for the winter and spring. Its northeast subsidiary is focusing on maintaining transmission lines and substations. The company’s subsidiary in flood-hit Shanxi province is strengthening power management amid severe floods. The Zhejiang subsidiary is closely monitoring power usage of high energy-consuming companies.
China to establish standards for emission reductions
China’s State Council issued a plan to establish a standard system for achieving its carbon-reduction goals in the fight against climate change. Under the plan, China will tighten energy consumption limits for energy-intensive equipment, products and industries. It will also set standards for carbon measurement, reporting and verification and for carbon reduction techniques like carbon capture, utilization and storage.
One killed in landslide at Shaanxi gold mine
A China National Gold Group Co. Ltd. gold mine in Shaanxi province was hit by a landslide after heavy rains Friday. A miner was found dead, and three are still trapped in the mine.
Inner Mongolia raises power prices for energy-intensive industries
Inner Mongolia, home to a large amount of China’s heavy industries, raised power prices for domestic smelters by about 0.2 yuan per kilowatt-hour. The cost of high-carbon ferrochrome smelting as a result rose 12% to 7,600-8,000 yuan ($1,180–$1,243) per 50 tons.
China’s LPG prices rise during national day holiday
China’s LPG prices rose during the National Day Holiday amid increases in European gas prices and surging crude prices as OPEC sticks to an output adjustment plan. According to analysts at JLC, an energy-market information provider, the upward trend in LPG prices will continue as the Japanese Meteorological Agency projects lower-than-average temperatures for the winter.
A La Niña event might further boost fuel prices, CICC predicts
CICC research suggests further gains in gas, coal and fertilizer prices as NOAA said a La Niña event is likely to emerge in the next few months. La Niña weather phenomena have global effects in which winter temperatures are cooler than normal in the Northern Hemisphere, usually leading to increased energy demand and higher fuel prices. World agricultural prices will also be affected by variations in weather conditions caused by La Niña.
Inner Mongolia authorizes more mines to boost coal production
According to local media, Inner Mongolia recently authorized the operation of 44 open pits and 11 newly constructed mines to boost coal production amid China’s extensive coal shortage, ensuring total annual capacity of 107.5 million tons of coal. The province also approved construction of 89 mines with 138 million tons of annual capacity.
Coal producers sign supply contracts with 18 provinces
Forty coal companies in Ordos, Inner Mongolia, signed a series of medium- and long-term coal contracts with 18 provinces to secure 53.6 million tons of coal supply for the fourth quarter. With 229 mines in operation and daily production capacity of 2.2 million tons, Ordos signed more than 100 million tons of coal contracts since September, 70% of it to fulfill demand from outside Inner Mongolia.
Power generation by China Three Gorges Renewables grows 35.2% in third quarter
China Three Gorges Renewables Co. Ltd., a state-owned clean energy group, reported total power generation of 7.1 billion kilowatt-hours (kWh) in the third quarter, up 35.2% year-on-year, and 23.7 billion kWh in first three quarters, up 42.7% year-on-year. The company set the largest-ever initial public offering for China’s power sector with its listing on the Shanghai Stock Exchange this year. Operating mostly renewable energy businesses, the company is favored by investors as China seeks to achieve its climate change-fighting goals for reducing carbon emissions.
Shenzhen Nanshan Power reports $7 million loss in first three quarters
Shenzhen Nanshan Power Co., an electricity and heat producer, reported a loss of 45 million yuan ($7 million) in first three quarters with a 46 million yuan loss in the third quarter. The company attributed the loss to soaring gas prices. Profit from power trading and nonrecurring assets also declined compared with the same period of last year.
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