China's coal demand to peak around 2025, global usage to follow, report

reuters.com Viewpoint,  Production & Sales,  Resource 2019-08-23 18:36:40

China's coal demand will start to fall in 2025 once consumption at utilities and other industrial sectors reaches its peak, a state-owned think tank said in a new report, easing pressure on Beijing to impose tougher curbs on fossil fuels.


The world's biggest coal consumer is expected to see total consumption fall 18% from 2018 to 2035, and by 39% from 2018 to 2050, the CNPC Economics and Technology Research Institute, run by the state-owned China National Petroleum Corp (CNPC), forecast in a report on August 22.


Cutting coal consumption and replacing it with cleaner energy like natural gas and renewables has been a key part of China's energy strategy, but it has continued to approve new mines and coal-fired power plants and support new projects overseas.


Though the share of coal in the country's total energy mix fell to 59% last year from 68.5% in 2012, overall consumption in 2018 rose 3% from a year earlier to 3.82 billion tonnes, official data showed.


However, the CNPC researchers said they expected the total share of coal to drop to 40.5% by 2035 as renewable, nuclear and natural gas capacity continues to increase rapidly.


"With coal demand in China falling gradually, world coal consumption is forecast to reach a peak within 10 years. Meanwhile, China's coal demand, currently accounting for half of the world's total, will decline to around 35% by 2050," the report said.


Li Ruifeng, vice director of the China Energy Technology and Economics Research Institute, a think tank run by the China Energy Group, China's biggest coal producer, said coal would remain China's major fuel over the next 15 years, with smaller mines replaced by bigger and more efficient collieries in the west.


That would force utilities on China's east coast to turn to foreign markets to guarantee supplies, with imports set to remain at around 200 million tonnes per year in the coming years "if there is no significant trade barrier", he said.


China, the world's biggest greenhouse gas emitter, has promised to show "the highest possible ambition" when it renews its climate pledges next year, and its energy policies have come under increasing scrutiny ahead of a major United Nations climate change conference in New York in September.


Though it is unclear what new pledges Beijing will make, special climate envoy Luis de Alba told Reuters that the UN had received positive responses from China and India when it comes to ending investment in coal at home and in the "Belt and Road" region.


"Certainly there is a transition that needs to be taken into account. But the message (on coal) itself was clear and well received," he said.


(Writing by Emma Yang  Editing by Harry Huo)
For any questions, please contact us by inquiry@fwenergy.com or +86-351-7219322.

Share this article
Connect with us

Editor's Pick

1 Shanxi coal output falls to new low in Mar 2024-04-19

China's top coal-producing province Shanxi saw its raw coal production for March fall to the lowest since July 2020, reaching 94.32 million tonnes, according to the latest data from the National Burea

2 Indonesian thermal coal prices continue to climb; Chinese tender prices drift higher 2024-04-19

Indonesian thermal coal offers have moved higher this week, reflecting miners' positive outlook buoyed by a rebound in the Chinese domestic market and the escalating tensions in the Middle East, which

3 Weekly China coal market news summary (Apr15-Apr 19) 2024-04-19

China Q1 coal output drops, supporting cautious growth forecastChina's coal production reached 1.11 billion tonnes in the first quarter of 2024, falling 4.1% compared with the same period last year, t

4 Weekly global coal market news summary (Apr 15-Apr 19) 2024-04-19

Int'l thermal coal prices extend weakness amid tepid buyingInternational thermal coal market weakened last week, primarily attributed to lackluster demand from major buyers despite an expected supply

5 China's raw coal output declines amid narrowed gains in major producing areas 2024-04-19

China's raw coal production has exhibited a downward trend since the beginning of this year, pressed by shrinking gains in major coal-producing regions, according to the National Bureau of Statistics

6 Bullish sentiment raises coking coal prices in China; import market increases 2024-04-19

China's coking coal online auctions continued to settle with premiums on April 19, fueled by ongoing demand from coking plants and traders on the back of coke price hikes.Some premium grades concluded

7 China Coal Daily Track (Apr 19) 2024-04-19

Thermal coalProduction area The overall thermal coal supply reduced as a few mines capped or suspended production for safety inspections. Metallurgical and chemical plants boosted restocking activity,

8 China futures market updates at close (Apr 19) 2024-04-19

Check out latest updates on the Chinese futures market for coking coal, coke, iron ore and others at close.

9 Infographic | China's power generation in Mar 2024 2024-04-19

Infographic | China's power generation in Mar 2024

10 Japan Mar coal imports down 6.1% on yr, prelim data 2024-04-19

Japan imported 13.13 million tonnes of coal in March, a 6.1% decrease year on year, showed the preliminary data from the Ministry of Finance on April 17.The import value amounted to 385.48 billion yen

Most Read Articles

1 China's coking coal market strengthens as demand improves; Mongolian coal rebounds 2024-04-15

China's domestic coking coal market sentiment turned around due to a combination of growing demand and falling supply. The expected price rally in the downstream coke market also bolstered the outlook

2 Weekly: China's coking coal market remains stable after 8th coke price cut 2024-04-15

Weakness continued to prevail in China's coking coal market during the last week, despite increased speculative demand driven partly by a contango in the futures market.However, end buyers remained ca

3 Infographic | China's Mar production of coal and other main industrial products 2024-04-16

China's production of coal, coke, crude steel and other main industrial products in Mar 2024.

4 China Coal Daily Track (Apr 16) 2024-04-16

Thermal coalProduction area Mine-mouth thermal coal prices ticked up in major producing regions, as stable portside market boosted trading activity. Coal shipments improved with more coal trucks arriv

5 Weekly: China's thermal coal prices halt decline, yet downward pressure lingers 2024-04-15

China's domestic thermal coal prices moved sideways last week, thanks mainly to purchases by traders with pressing short-covering demand. The fresh demand, however, could be temporary and the seasonal

6 China's NDRC approves 7-Mtpa coal mine project in Ordos 2024-04-15

China's state planner has approved the construction of Kongduigou coal mine project in Inner Mongolia's Ordos city, local media reported on April 9.The Kongduigou mine, located in the northern mining

7 China Q1 steel products imports down 8.6% YoY, iron ore up 5.5% 2024-04-15

China imported 1.75 million tonnes of steel products in the first quarter of 2024, falling 8.6% year on year, showed data from the General Administration of Customs.The import value came in at $2.87 b

8 China confirms to build coal capacity reserve system by 2027 2024-04-15

China officially approved to set up a domestic coal production capacity reserve system by 2027, aiming to ensure adequate supply and stabilize prices of the fossil fuel.After a previous draft issued e

9 Infographic | S. Korea coal imports in Mar 2024 2024-04-15

Infographic | S. Korea coal imports in Mar 2024

10 China Coal Daily Track (Apr 15) 2024-04-15

Thermal coalProduction area Thermal coal prices ticked up in major producing regions, supported by restocking demand from metallurgical and chemical plants. Some traders also made active purchases con