IN BRIEF (Page 5)

Energy conservation award

Peking University Energy Saving and Emission Reduction Innovation Award has been created by the College of Environmental Sciences and Engineering, Peking University and AB-InBev, a world-leading brewer.

The award is a bid to promote innovative teaching and research in the area of energy conservation and emissions reduction, and also to encourage graduate students to participate in community service, scientific practices and to start their own businesses.

Crude output seen at 189m tons

China is expected to produce 189 million tons of crude oil in 2008, making it the fifth biggest producer in the world, and natural gas output is expected to hit 76 billion cubic meters, said China National Petroleum Corp in a statement.

China's crude output has grown by an average of 2.04 percent annually over the past 30 years while gas production has risen by 5.74 percent year-on-year, the company noted.

Crude processing capacity is projected to reach 380 million tons in 2008, while crude consumption is expected to hit 368 million tons, including 192 million tons of gasoline, diesel, kerosene and lubricant consumption, it added.

Coal talks deadlocked

Talks between China's coal and power companies over the 2009 contract price have stalled.

At the talks, which began on December 20, coal miners sought at least a 4 percent price hike to make up for a value-added tax hike in 2009, while power firms were seeking a decline of 50 yuan per ton from a year earlier.

Profits at power companies have taken a hit due to coal prices and caps on power tariffs, with the coal-fired sector expected to report losses in 2008 of more than 70 billion yuan, according to Xue Jing, director of the statistics department at the China Electricity Council.

Coal firm to be listed

Shanxi Coal Import and Export Group, one of China's largest coal trading firms, plans to list some of its assets, worth 4.3 billion yuan, through China Petroleum Jilin Chemical Engineering & Construction Co Ltd, China Petroleum Jilin said on December 22.

The parent of China Petroleum Jilin, CNPC Jilin Chemical, planned to transfer all its shares in the listed company to Shanxi Coal, in return for seven coal trading firms in the Shanxi Coal, a company statement said.

The deal is waiting for approvals from the central government and Shanxi provincial authorities, the statement said.

Sinopec eyes Urals

China Petrochemical Corp, or Sinopec, has sought to acquire Russia-based firm Urals Energy to continue its overseas expansion after its takeover of Canada-based Tanganyika oil Co.

Sinopec, China's biggest oil refiner, had offered to pay $130 million for Urals Energy, a London-listed oil producer, almost five times higher than the company's market value.

Urals Energy, registered in Cyprus, has key assets in Russia.

Gas pipeline work begins

China has started construction on a gas pipeline from the western Ningxia Hui autonomous region to the southern Guangdong province, China National Petroleum Corporation (CNPC) said.

The pipeline will stretch 2,477 kilometers from Zhongwei, in the western part of Ningxia Hui autonomous region, to Guangzhou, capital of Guangdong province and its construction costs 93 billion yuan.

The capacity of the pipeline will be 30 billion cubic meters per year. The pipeline will be linked with a Central Asia gas pipeline currently under construction.

Gas will be transmitted to the eastern, southern and middle part of China.

Datang starts operation

Datang Wuwei Solar Power Station, China's first grid-connected solar power station built in a desert, came into operation in Wuwei City, Northwest China's Gansu province.

Built with a total installed capacity of 1 megawatt in Tengger Desert, the station was developed by the China Datang Corporation, China's second largest power producer. The project is scheduled for full completion by the end of 2009.

The desert enjoys 2,210 hours of sunshine, which means a 1-megawatt solar panel can generate 1.74 million kwh of electricity a year.

Total to expand in Sichuan

Total, the world's fourth largest oil and gas company, plans to expand its business to Southwest China's Sichuan province, as it eyes the region's ample natural gas resources, according to Jacques de Boissson, general representative of Total China.

Taking advantage of its advanced technology, the company is seeking cooperation with local companies to explore the gas field in northeastern part of Sichuan. Boissson said the details are still under discussion.

Shenhua sales down

China Shenhua, the country's biggest coal miner, said its sales in November 2008 fell by 5.2 percent from a year earlier to 18.2 million tons while exports remained flat at 2.2 million tons.

Shenhua produced 15.7 million tons of coal in November 2008, up 18.9 percent year-on-year, said the company's spokesman.

(China Daily 12/29/2008 page5)