Power demand in China will grow by 6 per cent a year over the next decade, according to Cambridge Energy Research Associates. According to official data, coal accounts for 70 per cent of China’s energy mix, but the research company said that increasing oil and gas use will reduce coal’s share to no less than 60 per cent by 2010.
Future demand for natural gas will to a large extent depend on the 4,200km west-toeast pipeline that will transport gas from northwest China to Shanghai. Company analyst Scott Roberts said the success of this project would itself depend largely on whether a competitive generating market would emerge. In April, the central government formally announced a plan to revamp the power sector by splitting generation and distribution responsibilities.