China to Speed Up Oil, Gas Exploration; Limit Power Plants

China plans to accelerate oil, gas and shale-oil exploration this year to meet increasing energy shortages and limit construction of certain power plants to reduce the strain on coal supplies and cut pollution.

“We need to alleviate tight supplies of coal, electricity, petroleum and transportation,” Ma Kai, chairman of National Development and Reform Commission, said in his annual speech to the parliament yesterday. “We will accelerate major projects for liquefying coal, exploiting petroleum and natural gas and we will rationally develop hydroelectric power.”

China’s economy expanded at the fastest pace in eight years in 2004, boosting demand for electricity as manufacturers such as Honda Motor Co. raised output. The pace at which power companies are moving to increase supply is prompting concern of surplus capacity and that environmental standards are being disregarded.

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