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China's Energy Supplies May Be Tight as Economy Grows
in-en.com  2007-4-26 12:30:28  

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China's coal and oil supplies may be insufficient to meet demand in the second quarter after the nation's economy grew at a faster-than-expected pace in the first three months.

Coal and oil supplies ``face pressure'' in the second quarter, the National Development and Reform Commission, the nation's top economic planner, said in a statement today. A decline in rainfall may exacerbate power shortages in southern and central China where hydro plants are concentrated, Zhu Hongren, deputy director of economic operations, said in Beijing.

The nation's electricity council had expected a four-year run of power shortfalls to ease this year as the world's second-largest energy consumer boosts generating capacity by at least 11 percent. China's economy expanded 11.1 percent in the first quarter, beating expectations and prompting demand for fuels from power plants and carmakers to soar.

``China may still face power shortages in certain areas such as Hainan, Sichuan,'' Zhu said. Twelve provinces had sporadic power shortages between January and March, the commission said in the statement.

China's economy may expand 9.9 percent this year, according to the median estimate of 30 economists surveyed by Bloomberg News after expanding at least 9.9 percent for the past four years.

Beats U.S.

The nation will consume more energy than the U.S. by 2030, according to a June 20 report by the U.S. Department of Energy's Energy Information Agency.

China's oil use, about 8.5 percent of world supply, is expected to more than double by 2030 to 15 million barrels a day. The U.S. now consumes about 20.6 million barrels a day, about 25 percent of the world total and is forecast to consume at least 27 million barrels a day by 2030.

China increased crude oil processing by 5.6 percent in the first quarter, the commission said. Gasoline output climbed 5.5 percent while diesel production rose 4 percent. Investment in aluminum and copper rebounded in the first quarter, it said.

China, the world's biggest coal producer and consumer, uses the coal to generate two-thirds of its power. The country became a net coal importer for the first time in January while crude imports surged to a record in March.

It increased coal imports by 53 percent to 5.67 million metric tons in March. Its exports fell 36 percent to 3.71 million tons in the same month, the Beijing-based Customs General Administration said April 23.


 
Author:Wang Ying and Michele Batchelor  From:Bloomberg  Edit:inen
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