Photo taken on Dec. 22, 2020 shows a thermal coal yard of Huanghua Port in Cangzhou City, north China's Hebei Province. Photo: Xinhua

The National Development and Reform Commission (NDRC), China's top economic planner vowed on Wednesday that railway companies and responsible authorities should prioritize the coal transportation to secure the coal supply for domestic power generation.

NDRC issued a notice on Wednesday, urging responsible authorities including power suppliers and railway operators across the country to further strengthen and prioritize the shipment of coal and ensure a stable supply for residential heating ahead of the start of winter. 

The notice comes amid a severe nationwide power shortage caused by soaring coal prices and policies aimed at reducing energy consumption.

Local economic planners have been instructed to promote the signing of medium- to long-term supply contracts of thermal coal which can guarantee the transport capacity and ensure an effective connection between production and transportation, per the notice. 

The notice also highlighted the importance to strengthen the coal transportation in key areas and major coal-producing areas including Shanxi, Shaanxi and Inner Mongolia and also in three provinces in Northeast China - Heilongjiang, Jilin and Liaoning. 

The Xinhua News Agency reported on Wednesday that medium- to long-term supply contracts of thermal coal have been signed by enterprises from both the demand and supply sides recently in Northeast China, with a total of 6.8 million tons of coals, meaning the coal supply for power generation and heating in Northeast China will be ensured. 

The unexpected and unprecedented power outages across the three provinces in Northeast China on Monday, following reported electricity shortages, have sparked growing concerns over the potential disruption of the power supply as demand spikes with the temperature dropping heading into winter.

Official economic departments will be required to closely monitor inventories of local thermal coal, while railway companies should strengthen the supply and transportation of coal to power generation facilities if stockpiles fall below a seven-day supply, said NDRC.

Global Times