On September 1, the Shenhua Group disclosed that China's national strategic coal reserve plan has been launched and the site selection is now underway. The planned storage capacity of the base will be around 30 million tons.
This announcement can be considered the formal unveiling of China's national coal reserve. In early 2008, frost, rain and snow disrupted China's electric coal production and transportation, causing electricity supply problems in multiple provinces. Therefore, authorities began to consider establishing a national coal reserve.
On September 1, Shenhua Group Chairman Zhang Xiwu said that the plan stipulates the government will have the right to use the coal stored by the Shenhua Group when necessary, the planned storage capacity of the coal reserve will be 30 million tons, and site selection is currently in progress.
According to coal market expert Li Chaolin, judging from past experience, the presence of 20—30 million tons of coal can affect supply and demand in the market. Though China's coal demand is far more than this amount, a certain amount of coal reserve can stabilize the market at a crucial moment.
By People's Daily Online