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Xinhua: Recent Energy Shortage Explained

Winter in the year 2009 brought China strong shortages of energy due to unusually cold weather. The National Energy Administration explained the situation giving four primary reasons: (1) the low water level in the middle and lower reaches of the Yangtze River; (2) rapid recovery of China’s macro economy in Q4 of 2009; (3) the low stock level of coal, as well as a bottleneck in railway capacities; (4) a sharp increase in consumer demand caused by the fact that most of the regions were attacked by rainy and snowy weather.

Actions being taken by the authorities are: (1) increasing the coal gas production level; (2) increasing the supply of natural gas by expanding the volume of imports; (3) speeding up the construction of Natural Gas Storage and Adjustment Facilities.

Source: Xinhua, January 22, 2010