Rise in energy demand likely to slacken
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Growth in energy demand is set to slow further in the final quarter of this year in China, but the gas market could be tight this winter.
The National Energy Administration yesterday said growth in energy use may slow further this quarter after easing in the July-September quarter, citing government efforts to spur energy conservation and cool the economy.
China has been shutting inefficient industrial capacity to help meet a government goal of cutting energy consumption per unit of gross domestic product by 20 percent in the five years through 2010.
Power consumed by heavy industries fell 17 percent in September from the previous month, compared with a 12 percent drop in overall electricity demand, the energy administration said.
The National Bureau of Statistics reported last week that factory production rose 13.3 percent in September from a year earlier, compared with a 13.9 percent increase in August.
China has closed inefficient power plants with a combined capacity of 11 gigawatts so far this year, meeting its 2010 target, Wang Siqiang, deputy head of the general affairs department of the energy administration told a quarterly briefing. Wang added that more inefficient power plants could be closed down before the end of the year.
Still, Wang said there could be a gas shortage this winter and next spring and the government has told state firms to increase production as well as imports.
The government may limit gas supplies at factories to ensure residential use.
The energy administration also said coal imports may dip in the fourth quarter as slowing factory output leaves "relatively ample" supplies. Net coal imports may rise 16 percent to 120 million tons this year.
Wang said 90GW of power generating capacity could be added this year, bringing the country's total to 950GW.
