February 7 2010

China: China Plans to Increase LNG Imports on Gas Shortage

China plans to increase its imports of liquefied natural gas to ease a domestic shortage of the fuel, the official Xinhua News Agency reported today, citing Zhang Guobao, head of the National Energy Administration.

China’s gas companies should sign more long-term LNG contracts in order to take advantage of a global surplus of the fuel, Zhang was quoted as saying in the Xinhua report.

India: India likely to face coal shock

India could face a ‘coal shock’ sooner than later if the power utilities do not wake up to the fuel security risks from stagnating domestic production and start planning long-term coal imports to meet the fuel shortage. Although big power producers like NTPC are already meeting domestic coal shortages with imports, they have not shown any urgency to get into long-term import contracts.

Meanwhile, China’s coal demand has overtaken its domestic production, forcing the world’s largest coal producer to import coal. Till 2006, China was a net exporter of coal.