Monday, October 18

China’s SPIC urges plants to boost output as power crunch hits northeast


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SINGAPORE — State Power Investment Corp, one of China’s top five power generators, urged its plants to boost coal supplies and generate more power for the northeast provinces at an emergency meeting.

Beijing is scrambling to deliver more coal to utilities to restore supply, as the country’s northeast region grapples with its worst power outages in years, particularly the three provinces of Liaoning, Heilongjiang and Jilin, home to nearly 100 million people.

In response to mandates from the State Council, or cabinet, SPIC urged its subsidiary coal and power producers to prepare contingency plans for winter energy supplies, the firm said on its official WeChat account on Thursday.

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“Communications among company-owned coal miners in the northeast region shall be enhanced and production for thermal coal shall be boosted,” SPIC said.

“Every single plant needs to set up its own contingency plan and enhance communications with the state grid.”

SPIC asked its key northeast China-based power plants to set up a daily reporting mechanism to further communications with miners besides SPIC to secure coal.

China’s power curbs were triggered by shortages of coal, which fuels about two-thirds of power generation.

Thermal coal futures closed up 4.2% on Thursday on the Zhengzhou Commodity Exchange, after hitting an all-time high of 1,408 yuan ($218) per tonne, having doubled between July and September. (Reporting by Chen Aizhu; Editing by Rashmi Aich)



financialpost.com

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