China to launch coal reserve bases in Shandong

BEIJING, May 11 - China will set up new coal reserve bases in eastern coastal Shandong province over the next three to five years in order to guarantee supplies, the country's top planning agency said on Friday.

It will build four to six bases, each with storage capacity of more than 20 million tonnes, the National Development and Reform Commission said in a notice posted on its website.

The first base in the city of Longkou will be launched in October this year, it said.

It said the facilities could also store coal imported from North Korea, Indonesia and Vietnam.

Shandong produced 135 million tonnes of coal last year, but was forced to source a further 170 million tonnes from other regions in order to meet local demand.

That shortfall is expected to reach 196 million tonnes by 2010 as demand continues to rise, the NDRC said.

The province suffered acute power shortages last summer as a result of coal supply bottlenecks, and was forced to ration electricity to industrial consumers.