China turned out to be on verge of crisis

Industrial centers in the north-east of China faced the energy crisis, writes Reuters. In the provinces were forced to reduce the flow of electricity due to the lack of coal.

The victims turned out to be the cities of Shenyang and Dalian, where more than 13 million people live. Also, problems are experiencing the city of Jilin with a population of 25 million people, where applicants of Apple and Tesla companies are located. The media and social network users throughout the region publish reports on the disconnection of road traffic lights, elevators in residential buildings, installations for coating mobile 3G mobile communications and entire factories. Some stores work for candles, and utilities is reported, the water supply turned out to be on the verge of shutdown.

Energy deficit occurred due to tightening of greenhouse gas emissions and high demand from the industry, which provoked the rise in coal prices. Now the cost of contracts for future supplies of coal in China increased by 7 percent to record 1324 yuan (204.76 dollars) per ton.

Jilin Province Governor stated that you need to create multiple channels for guaranteed supplies. At the same time, according to the official, China should increase the purchase of coal in Russia, Mongolia and Indonesia. The province will also urgently direct special groups to the nearby region of inner Mongolia to provide deliveries. The Chinese electric power advice representing electricity suppliers said that coal energy companies at any cost should expand their procurement channels to ensure the supply of heat and electricity in winter.

Coal merchants themselves note that it is easier to say than to find new sources of imports. “Russia must first meet the demand from Europe, Japan and South Korea,” said one of the traders of Northeast China. Export supplies of Indonesia were also limited to rainy weather in the last couple of months, and the export of Mongolia, mostly trucks, small. “

Energy Policy Researcher Lantau Group Consulting Company Manager David Fishman noted that there are ultimate deficiencies in China’s pricing system in China. “In the short term, the only solution that makes sense is to make the end users pay more for energy or dig more coal from the ground, which will inevitably become an unpopular idea.”

The estimates of the Goldman Sachs, the lack of electricity touched 44 percent of China’s industry, which will lead to a decrease in the annual GDP growth by 1 percent in the third quarter and 2 percent in the fourth quarter. According to analysts, China’s GDP may decrease to 7.8 percent from the previous forecast of 8.2 percent.

/Media reports.