Article from last November, in honor of class on Tuesday.
China raises price of electricity for non-residential use
BEIJING, Nov. 19 (Xinhua) -- China's National Development and Reform Commission (NDRC), the top economic planning agency, Thursday announced a rise in the price of electricity for non-residential use by 2.8 fen (0.4 U.S. cents) per kilowatt hour on average nationwide, as of Friday.
Residential electricity prices would not be raised this time. However, they would be charged on a progressive basis in the future, which meant prices would increase with consumption, said Cao Changqing, director of the NDRC's department of pricing.
The price increase would promote energy conservation awareness and the building of a resource efficient and environment-friendly society, added Cao.
China increased the price of coal-fired electricity, which power grid operators buy from power plants, by 2 fen on average last August, in a bid to ease cost pressures for power plants from rising coal prices. However, the retail prices of electricity had not been raised since then, which resulted in losses for grid operators, he said.
State Grid Corporation of China and China Southern Power Grid, the country's two leading power grid operators, lost a total amount of 16.1 billion yuan over the first eight months, the NDRC said in a statement on its website.
"If the electricity price could be raised by 1 to 1.5 fen per kilowatt hour, the State Grid Corporation of China could make up the losses incurred in the first half of this year within six months and have optimistic prospects for profitability," said Xie Dacheng, an industry analyst with Guangdong-based Guosen Securities.
Official figures showed that China's power consumption in October rose 15.87 percent year on year to 313.42 billion kilowatt hours, up for the fifth consecutive month since June.
The progressive pricing mechanism for residential users would be carried out in line with actual situations in different areas and after discussions and research, Cao said.
Residential electricity accounted for 12.8 percent of the country's combined power consumption in the first half, according to the China Electricity Council. China's non-residential electricity prices differ according to the area and sectors, but are higher than the price of power for residential use.
For instance, electricity for residential use in Beijing was 49fen per kilowatt hour, while that for agricultural use was around 52 fen per kilowatt hour, for secondary industry use 76 fen per kilowatt hour and for commercial use 79 per kilowatt hour, according to Beijing Electric Power Corporation.
Cao said the power price rise would not push up China's consumer price index (CPI), a main gauge of inflation. China's CPI dipped 0.5 percent year on year in October, while the producer price index (PPI), a major measure of inflation at the wholesale level, dropped 5.8 percent in October from a year earlier, according to the National Bureau of Statistics.
The electricity bill only accounted for a small share of household spending. Even after the future rise in residential electricity prices, it would not add pressure to a CPI hike, said Li Mingliang, an analyst with Shanghai-based Haitong Securities.
The residential power price was 50 fen per kilowatt hour on average nationwide last year, lower than the non-residential power price, said the commission, without giving the average non-residential power price across the country.
"As the electricity consumed by secondary industry, including mining, manufacturing, building and construction sectors, accounted for more than 70 percent of the country's total, non-residential power price rises will exert more influence on the PPI than CPI," Li said. (1 yuan = 100 fen)
URL: http://news.xinhuanet.com/english/2009-11/19/content_12492364.htm
Showing posts with label pricing. Show all posts
Showing posts with label pricing. Show all posts
Saturday, January 23, 2010
Tuesday, January 5, 2010
LNG deals galore!
Energy giant PetroChina Co. Ltd. has pulled out of a $40 billion deal to buy natural gas from a project off Australia, leaving Woodside Petroleum Ltd. looking for new customers.
China pulls out of US$40bil gas deal with Australia (1/5/10)
However, the first cargo of liquefied natural gas (LNG) bought by PetroChina on the spot market arrived at Shanghai on Saturday, part of a plan to increase supply to ease domestic gas shortages in the winter. The 65,000 tons of LNG (around 90 million cubic meters after regasification) was carried by a Russian LNG carrier. It will be pumped into gas networks in Shanghai, allowing PetroChina to divert an equivalent amount of gas to other regions with high demand this winter, via its flagship west-to-east gas pipeline.
PetroChina, the top Chinese gas firm, will incur a loss of more than 60 million yuan ($8.79 million) on the imported gas, because it is priced higher than the state-set price at which it must sell to Shanghai.
PetroChina's first spot LNG purchase arrives home (1/4/10)
Moving forward, "China hopes to clinch more deals on liquefied natural gas (LNG) imports and speed up construction of LNG receiving terminals, gas pipeline and storage facilities this year, the country's energy head said. The country will take advantage of the current excess supply in the international LNG market to speed up negotiations of overseas gas purchases, Zhang Guobao [head of the National Energy Administration] said Monday.... He noted that construction of LNG receiving terminals including Zhuhai, Shenzhen and Shandong will be pushed forward this year."
China will also further develop major gas fields in central and western China as well as offshore gas resources to maintain fast increases in domestic gas output.
The government will also approve a third gas pipeline linking Shaanxi and Beijing and a new pipe connecting Qinghuangdao city in Hebei province to Shenyang, capital of northeastern Liaoning province.
[Article also has some notes on coal-to-liquids and coal-to-gas projects.]
China eyes LNG import deals, private oil stockpiles (1/4/10)
Earlier last month, PetroChina's little brother, SinoPec agreed to buy 2 million tonnes of liquefied natural gas per year for 20 years from ExxonMobil's Papua New Guinea LNG project. The gas will go to a planned LNG terminal at Qingdao in Shandong province, which will have an annual capacity of 3 million tons in its first phase, rising to 5-6 million tons a year in a later second phase, SinoPec's state-owned parent company, Sinopec Group, said on its website www.sinopecgroup.com.cn.
Sinopec has planned the Qingdao terminal for several years but it had made little progress as it has not been able to secure LNG supplies, lagging behind rivals CNOOC and PetroChina, which already have three and two terminals respectively, at various states of development. It is also waiting for approval on an LNG terminal it hopes to build in Zhuhai.
Sinopec signs up Exxon for first LNG deal (12/3/09)
China pulls out of US$40bil gas deal with Australia (1/5/10)
--
However, the first cargo of liquefied natural gas (LNG) bought by PetroChina on the spot market arrived at Shanghai on Saturday, part of a plan to increase supply to ease domestic gas shortages in the winter. The 65,000 tons of LNG (around 90 million cubic meters after regasification) was carried by a Russian LNG carrier. It will be pumped into gas networks in Shanghai, allowing PetroChina to divert an equivalent amount of gas to other regions with high demand this winter, via its flagship west-to-east gas pipeline.
PetroChina, the top Chinese gas firm, will incur a loss of more than 60 million yuan ($8.79 million) on the imported gas, because it is priced higher than the state-set price at which it must sell to Shanghai.
PetroChina's first spot LNG purchase arrives home (1/4/10)
--
Moving forward, "China hopes to clinch more deals on liquefied natural gas (LNG) imports and speed up construction of LNG receiving terminals, gas pipeline and storage facilities this year, the country's energy head said. The country will take advantage of the current excess supply in the international LNG market to speed up negotiations of overseas gas purchases, Zhang Guobao [head of the National Energy Administration] said Monday.... He noted that construction of LNG receiving terminals including Zhuhai, Shenzhen and Shandong will be pushed forward this year."
China will also further develop major gas fields in central and western China as well as offshore gas resources to maintain fast increases in domestic gas output.
The government will also approve a third gas pipeline linking Shaanxi and Beijing and a new pipe connecting Qinghuangdao city in Hebei province to Shenyang, capital of northeastern Liaoning province.
[Article also has some notes on coal-to-liquids and coal-to-gas projects.]
China eyes LNG import deals, private oil stockpiles (1/4/10)
--
Earlier last month, PetroChina's little brother, SinoPec agreed to buy 2 million tonnes of liquefied natural gas per year for 20 years from ExxonMobil's Papua New Guinea LNG project. The gas will go to a planned LNG terminal at Qingdao in Shandong province, which will have an annual capacity of 3 million tons in its first phase, rising to 5-6 million tons a year in a later second phase, SinoPec's state-owned parent company, Sinopec Group, said on its website www.sinopecgroup.com.cn.
Sinopec has planned the Qingdao terminal for several years but it had made little progress as it has not been able to secure LNG supplies, lagging behind rivals CNOOC and PetroChina, which already have three and two terminals respectively, at various states of development. It is also waiting for approval on an LNG terminal it hopes to build in Zhuhai.
Sinopec signs up Exxon for first LNG deal (12/3/09)
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