Page 9 - AsiaElec Week 39

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China to close 8.7GW of old coal power plants in 2019
CHINA
A Chinese government agency said the country aimed to close 8.66GW of old and outdated coal- fired generating capacity during 2019 in a bid to reduce greenhouse gas (GHG) emissions.
The National Energy Administration said on September 29 that plants in all provinces and regions with under 50MW of capacity must close this year. The closures amount to just under 1% of the country’s total capacity.
In addition, plants with 50-100MW of capac- ity will close in areas connected to the national grid. Finally, all plants that have reached the end of their designed working life will close.
The targets mean that Henan Province in central China must aim to close 1.6GW, while Guangdong Province near Hong Kong will shut 2.3GW.Bothprovinceshavesomeofthecoun- try’s worst pollution records.
The target aims to cut down the use of elderly, inefficient and dirty generating technology, while also reducing coal’s share of the generating mix. The government aims to use more renew- ables, especially wind and solar, and cleaner, low-emission coal technology.
Closing old mines is also part of Beijing’s efforts to improve safety levels. In September, The National Coal Mine Safety Administra- tion stepped up safety checks, announcing that inspectors would crack down on illegal
production, especially at small mines.
It also wants mining companies to improve their safety systems and their ability to respond to major disasters such as gas explosions and
floods.
Many smaller mines produce coal illegally in
a bid to meet local demand, leading to a number of fatal accidents this year. Closing small mines this year will contribute to the campaign to improve safety levels.
The mine closures maintain the government’s efforts over the last few years to reduce coal’s dominance. The fuel’s share of the total energy mix declined from 68% in 2012 to 59% in 2018.
However, economic expansion and popula- tion growth means that coal consumption is still rising,andthecountryhas200GWofnewcoal- fired capacity in development.
China produced 2.09bn tonnes of coal over the first seven months of 2019, up 4.3% from the same period in 2018, according to official data.
China generated 4,732 TWh of power from coal in 2018, 6.5% more than in 2017, according to the BP 2019 Statistical Review of Energy.
China’s total coal-fired capacity could eventu- allypeakat1,300GW,upfromaround1,000GW in 2019, according to figures from the China Electricity Council, a state body that represents the country’s power industry.™
GAS-FIRED GENERATION
KOGAS agrees to buy US LNG from BP
SOUTH KOREA
STATE-OWNED Korea Gas (KOGAS) has struck a deal to buy 1.58mn tonnes per year (tpy) of US LNG from super-major BP. The deal cov- ers a 15-year period starting in 2025, but BP can opt to extend it for a further three years. South Korea’s Ministry of Trade, Industry and Energy estimates that if the deal is extended to cover 18 years, it will be worth $9.61bn.
The LNG will either be delivered from Free- port LNG, which recently entered service, or Calcasieu Pass, which is due to start up in 2022.
South Korea is the third-largest importer of LNG globally and the top importer of US LNG. The country also buys more LNG from Qatar and Australia than it does from the US. KOGAS currently imports 35-40mn tpy.
Imports from the US are on the rise. Customs data show that in the first eight months of 2019, South Korea imported 4.82mn tonnes of LNG from the US, marking a 5.5% increase from
4.57mn tonnes imported during the first eight months of 2018. Imports from the US accounted for 18% of the country’s total LNG imports over the first eight months of this year.
KOGAS has a 20-year supply deal with US exporter Cheniere Energy that started in 2017. The South Korean company currently imports 2.8mn tpy of LNG from Cheniere’s Sabine Pass terminal in Louisiana, though it is authorised to buy up to 3.5mn tpy under the deal.
KOGAS’ sale and purchase agreement (SPA) with BP is the first long-term contract the com- pany has signed since 2012. It comes as South Korea attempts to diversify its LNG supply sources beyond the Middle East and South-east Asia, which will lead to it buying more LNG from the US and Russia.
KOGAS is benefiting from low LNG prices, and said the price of the deal was around 70% of its existing contracts.™
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