Power Shortage in Zhejiang Province, Urgently Importing 130,000 Tons of Kazakhstani Coal

Shipping route only 15,700km, transport time 30 days... Economic feasibility low but no time to hesitate
Chinese regulators instruct financial sector to strengthen funding support for coal and raw material companies

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Zhejiang Province, China, which has run out of coal stockpiles, has urgently imported coal from Kazakhstan. Zhejiang Province, along with Jiangsu and Guangdong Provinces, is a region severely affected by power shortages and a center of China's manufacturing industry.

Photo by Global Times Capture

According to Chinese media including Pengpai on the 6th, coal imported from Kazakhstan by Zhejiang Energy Group arrived at Ningbo Zhoushan Port and unloading operations have begun. This is the first time Zhejiang Province has imported coal from Kazakhstan. The imported coal amounts to 136,000 tons, all of which is thermal coal for power generation, Chinese media reported.

Chinese media explained that as Zhejiang's economic situation improved, electricity consumption increased significantly, leading to a decrease in thermal coal stockpiles. Pengpai reported that Zhejiang Energy authorities had previously imported 130,000 tons of U.S. coal in June and July.

A Zhejiang Energy authority official stated, "As Zhejiang's economy rapidly recovered, electricity consumption from January to August increased by 18.3% compared to the previous year, and due to the continued heatwave, electricity consumption in September alone rose by 17.3% compared to the same month last year. In particular, electricity consumption in eight major energy-intensive industries increased by more than 20% year-on-year, causing power shortages," the official explained.

When coal stockpiles in Zhejiang reached a critical level, on the 28th of last month, the province issued a power usage guideline prioritizing electricity supply to hospitals, public facilities, and financial institutions. The power supply situation is classified into six levels from A to F, with electricity usage restrictions imposed according to the level.

The import of Kazakh coal indicates the severity of China's power shortage. Kazakhstan is known to have the world's eighth-largest coal reserves, estimated at 176.7 billion tons. The problem lies in transportation. Kazakhstan is a landlocked country located northwest of China's Xinjiang Uygur Autonomous Region. Although it shares a border with China, the mountainous terrain makes inland transportation difficult. To transport coal by sea to China's eastern coast, it must first be transported overland to the Black Sea and then shipped by sea again. The shipping route is about 15,700 km long. Transportation takes more than 30 days. Considering time and logistics costs, the economic viability of Kazakh coal is greatly reduced. This underscores the severity of China's power shortage.

Meanwhile, Chinese financial authorities have instructed financial companies to strengthen funding support for companies involved in coal imports until next spring. They have also ordered banks, insurance companies, and securities firms to stop investing in speculative international commodity products such as coal, steel, and non-ferrous metals.

This content was produced with the assistance of AI translation services.