September 28
– Bloomberg:
China “The world’s second-biggest economy is caught in the grips of a widening power crisis that’s threatening to stymie growth and further tangle already snarled global supply chains. At least 20 Chinese provinces and regions making up more than 66% of the country’s gross domestic product have announced some form of power cuts, mostly targeted at heavy industrial users. The reasons are two-fold -- record high coal prices are causing power generators to trim output despite soaring demand, while some areas have pro-actively halted electricity flows to meet emissions and energy intensity goals.”
“China’s central government officials ordered the country’s top state-owned energy companies -- from coal to electricity and oil -- to secure supplies for this winter at all costs, according to people familiar… The order came directly from Vice Premier Han Zheng… and was delivered during an emergency meeting earlier this week with officials from Beijing’s state-owned assets regulator and economic planning agency, the people said… Blackouts won’t be tolerated, the people said.”
September 28
– Bloomberg:
“China’s power-hungry commodities producers are in Beijing’s firing line, but the government’s efforts to stave off a full-blown energy crisis are also fueling rallies in everything from fertilizer to silicon. Production of metals from aluminum to steel has been spluttering for months as power curbs have intensified across key industrial provinces. Now factories producing high-end goods are starting to feel the pinch too, creating burgeoning risks to the nation’s economic growth. What’s worse, the energy crunch is spreading to a sector that alarms Beijing the most: food.”
October 1
– Bloomberg
(Elena Mazneva and
Anna Shiryaevskaya):
“The deepening global energy crunch has pushed natural gas in Europe and Asia to the equivalent of about $190 a barrel, something the oil market has never seen. Both regions saw fresh records in the heating and power-generation fuel this week as utilities rush to restock lower-than-average inventories ahead of winter in the northern hemisphere, while alternatives -- like coal -- are also in short supply.”
September 27
– Bloomberg:
“China’s power crisis looks set to spur it to import more coal from a wider range of producers, putting it into competition with European and Indian buyers that are also snapping up more of the dirtiest fossil fuel. More than two-thirds of China’s electricity comes from coal-fired plants and, while more than 90% of the fuel it uses is mined locally, it’s difficult to raise local output at short notice. Looking offshore is the easier option, but that’s been complicated somewhat by Beijing’s decision to ban imports from Australia -- the world’s second-biggest exporter -- late last year. It isn’t easy to ramp up local coal supply, given the low investment in new mines in recent years, Bloomberg Intelligence analyst Michelle Leung said…”
September 30
– Reuters
(Gabriel Crossley and
Shivani Singh):
“Small firms caught in China's prolonged energy crunch are turning to diesel generators, or simply shutting shop, as coal industry officials voiced fears about stockpiles ahead of winter and manufacturing shrank in the world's no. 2 economy. Beijing is scrambling to deliver more coal to utilities to restore supply as the northeast grapples with its worst power outages in years, particularly the three provinces of Liaoning, Heilongjiang and Jilin, home to nearly 100 million people.”
September 28
– Bloomberg:
“The electricity crisis that’s wreaking havoc on the Chinese economy is at risk of worsening this winter if freezing weather exacerbates surging power demand and soaring fuel prices. The chance of a La Nina -- a weather pattern that usually brings colder-than-normal temperatures to the Northern Hemisphere -- is looking more likely, which would further stretch already tight energy supplies. There’s a 70% to 80% chance of a La Nina over the winter of 2021/22, the U.S. National Weather Service said earlier this month.”
September 27
– Reuters
(Guy Faulconbridge and
Alistair Smout):
“Gas station pumps ran dry in British cities on Monday and vendors rationed sales as a shortage of truckers strained supply chains to breaking point. A post-Brexit shortage of lorry drivers as the COVID-19 pandemic eases has sown chaos through British supply chains in everything from food to fuel, raising the spectre of disruptions and price rises in the run-up to Christmas. Drivers queued for hours to fill their cars at petrol stations that were still selling fuel, albeit often rationed. There were also calls for National Health Service (NHS) staff and other emergency workers to be given priority.”
September 28
– Bloomberg
(Stephen Stapczynski,
Ann Koh and Isis Almeida):
“China, the world’s top coal consumer, is in dire need of more supply and is willing to pay any price -- a move that threatens to leave less fuel for energy-starved rivals. With winter on the way for much of the world and natural gas prices at record levels, economies across the globe are competing for a finite supply of coal. At the center of the scramble is China, where stockpiles are low and demand is at an all-time high. The dirtiest fossil fuel, which was struggling against cleaner energy sources, is now seeing its biggest comeback ever, complicating international climate talks set to begin in just a few weeks.”