IN BRIEF (Page 5)

Shanxi coal production up

China's Shanxi province increased coal production by 8.4 percent to 630 million tons last year as energy demand rose.

The province's coal mines shipped 550 million tons of that production out of Shanxi, says the provincial government.

Shanxi expects to achieve 800 million tons of coal production capacity by 2010, with an output target of 750 million tons. The provincial government says it plans to shut about 100 million tons of obsolete mining capacity, the provincial government says.

Longtan dam finished

Construction has been finished on the dam at the Longtan hydropower project, the third largest project of its type in China, said the project manager.

Workers poured 7.36 million cubic meters of concrete into the main wall of the project, completing the 216.5-meter high, 832-meter long dam early this month.

The concrete placement of the dam's main section was completed eight months ahead of schedule, which would enable the dam to start its role in power generation, flood control and shipping improvement this year, says Dai Bo, general manager of the Longtan Hydropower Development Co of China Datang Corporation.

Crude output up

China increased its crude output 1.2 percent in the first two months of this year to help meet rising energy demand.

Production climbed to 30.78 million tons, according to National Bureau of Statistics.

Electricity output increased 11.3 percent to 516.9 billion kilowatt-hours, it said.

Coal exports drop

China's coal exports saw a big drop in February, mainly resulting from the severe winter snowstorm, according to the General Administration of Customs.

During the month, China's coal exports totaled 3 million tons, down 32 percent from the same period of 2007 and 48 percent from January.

China exported 8.75 million tons of coal in the first two months of 2008, up 13.5 percent year-on-year.

Shenhua coal hike

China Shenhua Energy Co, the country's biggest coal company, boosted production of the fuel last month by 26.5 percent and cut exports to meet rising domestic demand.

The Beijing-based company produced 14.8 million tons of coal in February, Shenhua Energy said in a statement to the Hong Kong stock exchange. Sales of the fuel rose 26 percent to 18.9 million tons while exports fell 11.1 percent to 1.6 million tons, it said.

Power generation climbed 35.6 percent to 6.32 million megawatt-hours last month, it said.

Evonik buys out JV

Evonik Industries AG has acquired the remaining 49 percent of its former joint venture Degussa Lynchem Co Ltd in Dalian in China.

"In taking over the remaining shares, we are strengthening our global exclusive synthesis business and further expanding it in line with our successful concept of horizontal integration," says Alfred Oberholz, member of the executive board of Evonik Industries AG with responsibility for the chemicals business area.

Financial details of the acquisition have not been disclosed. The transaction is subject to the approval of government authorities, which is expected to be received by the end of March.

Trees for Hubei

A forestry project was launched in the central province of Hubei last week, part of an effort to capture carbon dioxide blamed for global warming.

Under the program, some 667 hectares of black locust trees and four other broadleaf trees will be planted in the province to help absorb carbon emissions and improve the local ecological system.

With a total investment of 6 million yuan from the local government and China National Petroleum Corporation, 400 hectares of forest will be planted over 20 years in the eastern suburbs of Wuhan, the provincial capital, during the first phase of the project.

Diesel output may rise

China, the world's second biggest energy user, may boost oil processing by 7.8 percent in the first quarter to meet a shortage of diesel, the International Energy Agency (IEA) said.

Refineries in the world's fastest-growing major economy could increase processing by 500,000 barrels a day to 6.9 million barrels a day in the first three months of the year, compared with a year earlier, the Paris-based energy adviser to 27 oil-consuming nations said in its oil monthly report.

"Higher diesel imports of around 170,000 barrels a day in March should help relieve the product shortages reported in recent months," the IEA says. "Strong diesel demand associated with agricultural activity in March may keep the pressure on refiners to maximize crude runs through to the end of the month."

LNG purchases may rise

Guangdong Dapeng LNG may double purchases of individual liquefied natural gas (LNG) this year, a company official said.

The terminal, a venture between China National Offshore Oil Corp and BP Plc, bought seven individual cargoes for immediate delivery last year.

The company is in talks to buy additional LNG on multiyear terms as it increases its import terminal capacity to 9 million tons a year by mid-2009.

(China Daily 03/17/2008 page5)