China warns on winter energy supply

China warned on Thursday that its energy supply problems were likely to last into winter as it struggles to ensure stable sources of coal, oil and power, the People’s Daily reported, citing a senior official.

The pressure to secure raw materials will be “considerable”, according to the report, which quoted an unnamed official of the National Development and Reform Commission (NDRC), the top government planning agency.
The NDRC did not offer a reason for the persistent tightness in supplies, but China is only now beginning to emerge from several months of its worst summer power supply crisis in four years, after surging coal prices turned power company margins negative, prompting many to curb supplies.

It has also battled sporadic shortages of refined fuels as cheap domestic pump prices and soaring global crude oil costs deter refiners from fully meeting demand.

Power and coal supply in central and southwestern China might worsen in the coming winter when hydropower generation declines seasonally, the report said, while analysts warned that transport bottlenecks could also stymie coal shipments in the winter.

Reuters