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Coal Mining & Market News China Reserve Base

Sichuan’s first state-level coal reserve base to begin operations

The inaugural national coal reserve base in southwestern China’s Sichuan province is set to commence operations by mid-May’24, signalling a strategic step towards bolstering energy supplies and security, particularly during peak demand periods, notably the summer months.

Situated within the Gaoxin Logistics Park in Guang’an city, the base spans 14.9 hectares. Construction commenced on 10 March, 2021, with plans outlining a storage capacity of 1.2 million tonnes (mnt) and an annual transshipment capacity of 10 mnt.

Upon inauguration, the project will serve as a pivotal coal supply hub, catering to emergency requirements in Sichuan and neighbouring Chongqing.

Despite Sichuan’s status as China’s foremost hydropower producer, the region faced severe shortages in hydropower output during recent summer months, attributable to extreme hot and dry weather conditions. Consequently, local authorities pivoted towards increased coal utilisation to safeguard energy security.

In August 2022, the province’s hydropower reservoirs dwindled to half their typical levels, resulting in a drastic 50% reduction in generating capacity. This precipitated electricity cuts to both commercial enterprises and households.

Source: Bigmint