China confident of securing energy supply despite serious challenges

Adds comment on oil and gas imports

BEIJING, March 7 (Reuters)The Chinese government is able to provide enough energy despite serious challenges as it will increase generation capacity and increase reserves to keep prices in check, state planning officials said Monday.

Global energy and commodity prices have hit decade-long highs amid fears of supply disruptions following Russia’s invasion of Ukraine.

“Geopolitical conflicts and shifts in global energy supply and demand have tested our secure energy supply,” said Lian Weiliang, vice director of the National Development and Reform Commission, on the sidelines. of a meeting of Parliament.

“But we are confident that we can secure the energy supply,” Lian said.

He acknowledged that rising global crude oil and gas prices would affect China, which sources more than 70% of oil and 40% of gas from abroad, but that the impact would be manageable.

China has diversified its oil and gas supplies, and imports could remain stable as long as all parities implement contracts, he said.

The state planning body aimed to increase production and reserves of oil, gas and coal, which power more than 60% of China’s power generation plants.

Lian said China would be able to maintain a reasonable level of coal production.

It would also accumulate 200 million tonnes of government-deployable coal stockpiles, add more than 5 billion cubic meters of gas storage and increase the amount of emergency backup electricity to more than 30 gigawatts, it said. he declares.

Some 450 gigawatts (GW) of solar and wind power generation capacity are also planned in the Gobi and other desert regions.

The NDRC has also pledged not to limit electricity and gas consumption unless extreme situations arise – in line with Premiere Li Keqiang’s wish to ensure electricity supply for residential and industrial users this year. .

He also said he would step up efforts to stabilize production and prices of domestic grains, corn and soybeans.

“We will make rational use of international resources, strengthen reserve adjustments and maintain a balance between supply and demand,” said Hu Zucai, deputy director of the NDRC.

(Reporting by Kevin Yao, Muyu Xu and Dominique Patton; Editing by Edwina Gibbs, Robert Birsel)

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