20 June 2012 15:43 [Source: ICIS news]
SINGAPORE (ICIS)--China will open more energy projects to private ventures and encourage private investment in a wide range of energy sectors to improve efficiency, cut costs and enhance structural reforms, the National Energy Administration (NEA) announced on Wednesday.
The NEA guidelines permit private ventures to participate in the construction and operation of all energy projects, except those expressly forbidden by law. Private investment in exploration for both conventional and non-conventional oil and gas, oil refining, as well as oil and gas pipeline construction will be encouraged, it said.
Power generation, power-grid construction, coal mining and coal conversion are also set to benefit.
China will establish a fair and ordered market to give private ventures equal access to resources such as exploration rights, bank loans and other funds, said the NEA. Prices of unconventional gas such as shale gas and coal-bed methane will not be subject to government intervention, it said.
Private ventures will also receive support to speed up innovation and upgrade production and management.
Private capital currently controls approximately 40% of China’s coal production, 26% of hydropower capacity, 20% of wind-power capacity and 18% of its refining capacity, according to the NEA.
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