CNR:

Thank you. China had also previously experienced natural gas and power shortages and the country has been strengthening the establishment of a system linking energy production, supply, storage and sales. What measures have been taken in this regard? And what has been the effect? Thank you.

Zhang Jianhua:

I'd like to welcome Secretary General Zhao Chenxin to answer this question.

Zhao Chenxin: 

Thank you for your questions. The work you mentioned is an important task put forward by the Central Committee and the State Council in recent years. The ability to supply and guarantee energy can be enhanced through the establishment of a system linking energy production, supply, storage and sales. This system, as a large-scale project, is wide ranging. As such, I will briefly introduce the most pertinent issues and the progress we have made in this regard.

In terms of the coal industry: 

First, the industrial structure has been constantly optimized by deepening coal supply-side structural reforms in the coal industry. We have stuck to the principles of "constructing large units and restricting small ones and increasing the superior, while eliminating the inferior" in coal production. In addition, we have been significantly optimizing the industrial structure in a bid to achieve a giant leap forward in the ability to supply coal and its quality.

Second, measures have been taken to ensure more convenient and rational coal transportation, and transport capacity has been significantly improved. The main channels are under rapid construction and include such projects as the "West-to-East Coal Delivery" and "North-South Coal Transportation." The Haolebaoji-Ji'an Railway has also been completed and is now in operation. We have sped up the layout of dedicated railway lines linking coal production places to sales areas, while main ports and road-rail combined transport in logistics parks are developing in an orderly manner.

Third, the coal reserve capacity continues to increase. A batch of large-scale coal reserve bases are under rapid construction with corporate social responsibility reserves pressing ahead in an orderly manner and emergency support capabilities significantly raised.

Fourth, the market system has been promoted. We have established a medium- and long-term coal contract system to give play to the important role of "ballast stones." A national coal trading center has been completed and opened, and a modern market system for coal trading is gradually improving. We can see the progress made in establishing a system linking energy production, supply, storage and sales and its effects from the above four aspects.

In terms of the electricity industry:

First, the power production capacity is sufficient, and the installed capacity and power generation capacity rank first in the world. We have established a multi-power generation system featuring coordinated development between coal, gas, hydro, nuclear, wind and PV power. The clean energy industry is developing quickly and the proportion of non-fossil energy in primary energy consumption has gradually increased.

Second, the capabilities of power grid resource allocation have been significantly enhanced. Continuous improvements have been made to grid layout, power flow and smart grid, which can meet the multiple needs of grid-connection.

Third, the capability to adjust peak periods of power-usage and the system of peak reserves have been improved steadily. Constant progress and breakthroughs have been made in related technology, with industrial applications being increasingly upgraded.

Fourth, consumer-side electrification levels and management capabilities continue to improve. With demand for electricity rising nationwide, the management of power users has been further strengthened. Power consumption has leapt from a fast-growing stage to a high-quality growth stage, and reform of the electricity market system is gradually advancing.

In terms of the petroleum and gas industry:

First, promoting increased reserves and production. In recent years, the NDRC and the NEA have made huge efforts to stabilize the input to enhance oil and gas exploration.

Second, maintaining import supply. We have actively pressed ahead with diversified oil and gas imports by deepening international cooperation. We have advanced the construction and interconnection of oil and gas pipeline networks. A batch of pipelines including the northern and central sections of the China-Russia Eastern Route have been completed and put into operation.

Third, promoting the construction of storage facilities. We have accelerated the promotion of a multi-level petroleum storage system that combines government storage, corporate social responsibility storage, and production and operation inventory, which complement one another. We have improved the level of national petroleum reserves. Efforts have been made to strengthen the gas storage capacity for upstream supply companies, urban gas companies and local governments, while a number of large-scale gas storage facilities have also been put into operation. 

Fourth, improving market system. The China Oil & Gas Piping Network Corporation (PipeChina) was established on Dec. 9, 2019. The company has accelerated the formation of an "X+1+X" oil and gas market system featuring multi-subject and multi-channel supply of upstream oil and gas resources, a unified pipeline network for efficient collection and transportation, and full competition in the downstream sales market. We have strengthened the supervision of the oil products market, investigated and punished illegal operations such as unlicensed operations and substandard quality in accordance with the law, regulated market order, and advanced the healthy development of the industry.

My introduction to efforts in the coal, electric power and petroleum gas industries demonstrates that the direction of the system linking energy production, supply, storage and sales is in line with the realities of China's development, that it is correct, and that the results are remarkable. In the future, we will continue to do our best in the energy resources industry. That's all, thank you.