What measures is China taking to address the coal supply crunch?

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China is implementing multiple measures to address its coal supply crunch by increasing production and imports, and ensuring supply contracts.

China's National Development and Reform Commission (NDRC) is actively monitoring coal use and stock levels at power plants across the country. The commission has directed local governments to enhance the fulfilment of medium- and long-term contracts for thermal coal, a critical step in stabilising supply chains. These efforts are being complemented by a push to increase both domestic coal production and imports, aiming to bolster the overall availability of this key energy source.
Enhancing Contractual Obligations for Thermal Coal

The NDRC has specifically requested that local authorities improve the execution of existing medium- and long-term contracts for thermal coal. This directive aims to ensure that contracted volumes are delivered reliably, thereby providing a more predictable supply for power generation. This focus on contract fulfilment is crucial for maintaining consistent operations at power plants, particularly in regions experiencing significant electricity shortages.
Boosting Domestic Production and Imports

In addition to contract management, China is actively seeking to increase its coal supply through expanded domestic production. Simultaneously, the nation has issued calls for an increase in coal imports. This dual approach of boosting internal supply while seeking external sources is designed to rapidly augment the total volume of coal available to meet rising demand, especially in anticipation of winter heating needs.
Securing Supply for Key Regions and Sectors

The main state grid operator has committed to guaranteeing coal supply and will implement strict controls on power consumption for high-energy consuming and polluting industries. This measure prioritises residential power needs and ensures supply for the upcoming winter heating season. Reports indicate that coal resources for heating and power generation in northeastern provinces, including Jilin, Heilongjiang, and Liaoning, have been secured through recent medium- and long-term contracts signed by suppliers and producers.

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What measures is China taking to address the coal supply crunch?

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