China's centrally-administered petroleum and petrochemical state-owned enterprises (SOEs) invested 395.58
billion yuan (about 52.05 billion U.S. dollars) last year, overtaking the
projected figure by 18.8 percent.
Another 431.2 billion yuan (about 56.74 billion U.S. dollars) was invested by
electric power enterprises, up 2.7 percent from the planned figure, statistics
from the State-owned Assets Supervision and Administration Commission (SASAC)
These investments amounted to 63.6 percent of the total 1.3 trillion yuan
(about 171 billion U.S. dollars) invested by the country's 159
Sources with the SASAC attributed the higher-than-expected investment in
petroleum and petrochemical industries to overseas mergers and acquisitions for oil and gas resources and increased spending on oil and gas
The Sinopec, for instance, forked out nine billion yuan more for
its overseas projects.
The China National Petroleum Corporation was reported to have spent 24
billion yuan (3.16 billion U.S. dollars) more on oil exploitation alone.
Last year, the newly added petroleum reserve by centrally-administered SOEs
was 803 million tons while that of natural gas stood around 517.6 billion cubic
meters, said the SASAC.
The administration also noted that most of the investment by electric SOEs
went to power grid building and power generation.
China's five largest electric power groups, Huaneng, Huadian, Longyuan, China
Power Investment and Datang hold a combined installed capacity of 243.54 billion
kilowatts, accounting for 39.1 percent of the country's total, up 3.1 percentage
points from 2005, it said.
Sources with the SASAC said that these investments were quite necessary.
Besides, the structure of China's energy industry improved obviously as more and more power
generating SOEs turned to investing in new energy such as nuclear, wind and
solar power to reduce coal consumption.
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