China to curb coal use, raise domestic energy output

Market: Coal, Crude oil, Electricity, Natural gas
22/04/21

China's top energy planning authority the NEA has set out detailed guidance for coal use this year, while raising its target for non-thermal power generation to help meet emissions goals.

Coal's share of primary energy consumption should fall below 56pc in 2021, the NEA said today, down from 56.8pc last year. The NEA did not provide a numerical cap on energy consumption, as it used to do. China's total energy use was 4.98bn t of coal equivalent (tce) last year, up by 2.2pc from 2019.

The NEA set the total domestic energy output target at 4.2bn tce for 2021, up by 2.9pc from last year. The growth rate is higher than in the past two years, reflecting a government push to raise self-efficiency in response to energy security concerns.

The target for domestic crude output has been set at 196mn t (3.94mn b/d), up by a slight 0.6pc from 194.77mn t or 3.9mn b/d last year. Natural gas output is seen rising by 5.2pc to 202.5bn m³ from 192.5bn m³ in 2020.

The NEA set a preliminary target earlier this week to raise the share of solar and wind-based power generation to 11pc in this year's overall power output, from 9.5pc in 2020. The share will further increase to 16.5pc by 2025, NEA said.

The amount of installed capacity for non-fossil fuel based electricity — hydro, wind, solar, biomass and nuclear — is expected reach 1100GW this year, up by almost 12pc from 984.53GW at the end of 2020. Utilisation rates for on-grid renewable electricity are expected to become binding targets for electricity producers, power grids and local governments.

China is in a critical period to implement an energy transition that will enable it to meet its carbon emission and carbon neutrality pledges, amid a complex international environment and risks to energy security, the NEA said.

Energy consumption per GDP unit should be cut by 3pc this year. The Chinese government last month set a binding target to cut it by 13.5pc for the five-year plan covers 2021-25.

China's energy balance sheet				mn tce
	2018	2019	2020	2021 target

Domestic output
Total	3,788.6	3,970.0	4,080.0	4,200.0
Coal	2,621.7	2,723.4	2,761.5	N/A
Crude	272.8	273.9	278.3	280.0
Natural gas	204.6	226.3	248.5	261.0
Primary electricity, others **	689.5	746.4	791.7	N/A
Consumption
Total	4,719.3	4,870.0	4,980.0
Coal	2,784.4	2,810.0	2,826.9	<56%
Crude	891.9	920.4	950.8
Natural gas	358.7	394.5	422.9
Primary electricity, others **	684.3	745.1	779.4
Source: China NBS, NEA
2020 breakdown calculated based on NBS data ** renewables, nuclear, hydropower, etc

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20/12/24

US House votes to avert government shutdown

Washington, 20 December (Argus) — The US House of Representatives voted overwhelmingly today to extend funding for US federal government agencies and avoid a partial government shutdown. The Republican-controlled House, by a 366-34 vote, approved a measure that would maintain funding for the government at current levels until 14 March, deliver $10bn in agricultural aid and provide $100bn in disaster relief. Its passage was in doubt until voting began in the House at 5pm ET, following a chaotic intervention two days earlier by president-elect Donald Trump and his allies, including Tesla chief executive Elon Musk. The Democratic-led Senate is expected to approve the measure, and President Joe Biden has promised to sign it. Trump and Musk on 18 December derailed a spending deal House speaker Mike Johnson (R-Louisiana) had negotiated with Democratic lawmakers in the House and the Senate. Trump lobbied for a more streamlined version that would have suspended the ceiling on federal debt until 30 January 2027. But that version of the bill failed in the House on Thursday, because of opposition from 38 Republicans who bucked the preference of their party leader. Trump and Musk opposed the bipartisan spending package, contending that it would fund Democratic priorities, such as rebuilding the collapsed Francis Scott Key Bridge in Baltimore, Maryland. But doing away with that bill killed many other initiatives that his party members have advanced, including a provision authorizing year-round 15pc ethanol gasoline (E15) sales. Depending on the timing of the Senate action and the presidential signature, funding for US government agencies could lapse briefly beginning on Saturday. Key US agencies tasked with energy sector regulatory oversight and permitting activities have indicated that a brief shutdown would not significantly interfere with their operations. But the episode previews potential legislative disarray when Republicans take full control of Congress on 3 January and Trump returns to the White House on 20 January. Extending government funding beyond 14 March is likely to feature as an element in the Republicans' attempts to extend corporate tax cuts set to expire at the end of 2025, which is a key priority for Trump. The Republicans will have a 53-47 majority in the Senate next month, but their hold on the House will be even narrower than this year, at 219-215 initially. Trump has picked two House Republican members to serve in his administration, so the House Republican majority could briefly drop to 217-215 just as funding for the government would expire in mid-March. Congress will separately have to tackle the issue of raising the debt limit. Conservative advocacy group Economic Policy Innovation Center projects that US borrowing could reach that limit as early as June. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Brazil Bndes invests more in Sao Paulo EV fleet

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20/12/24

Brazil Bndes invests more in Sao Paulo EV fleet

Sao Paulo, 20 December (Argus) — Brazil's Bndes development bank approved R94.8mn ($15.6mn) in financing for transport company MobiBrasil to buy 87 electric buses in Sao Paulo city. The environment ministry's climate fund — created to finance climate change mitigation projects and Bndes — will be responsible for R45mn. A federal fund to provide financial security to the unemployed, dubbed FGTS, will be responsible for the remaining R49.8mn. This is Bndes' first operation using FGTS resources. Earlier this month, Bndes said it will invest R2.5bn to buy 1,300 EV-buses in Sao Paulo city . On 9 December, the city's council postponed the bus fleet transition from diesel-powered to EVs to 2054 from the previous 2038 deadline. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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US government agencies set to shut down

20/12/24

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20/12/24

US government agencies set to shut down

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Investment funds cut net long positions on Ice TTF

20/12/24

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20/12/24

Investment funds cut net long positions on Ice TTF

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Viewpoint: More changes for Dated crude benchmark ahead

20/12/24

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20/12/24

Viewpoint: More changes for Dated crude benchmark ahead

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