More Global Energy Firms Covet China
Dec 11, 2007 - SinoCast
More international energy companies expect to build
a presence in China's fast-growing coal industry in
line with the nation's related policies in the near
Till now, Asian American Gas, Inc. (AAGI) has been
th only one among them that has successfully marched
into the domestic coal sector. Several companies have
been forced to shift their focus and start making
investments in the downstream coal sector and coal
machinery field, while more ones still expect the
"From 2005 to 2030, the world's total coal demand
is predicted to surge 70%," said a famed energy expert.
"Both China and India will turn into the two main
consumers worldwide at that time."
Meanwhile, the expert suggested that China should
open its arms to more international energy investors,
chiefly because the nation is lacking in advanced
technologies in its coal sector now.
The nation is forecasted to see the peak coal output
of 4 billion tons by the end of 2030, making up 50%
of the world's total figure. In addition, it is likely
to need a total investment of about USD 1 trillion
in the coal industry.
Therefore, Peabody Energy (NYSE: BTU), Anglo Coal,
and other global energy tycoons all have great interests
to invest in China's upstream coal businesses, said
people close to the matter.
As one of the largest private coal companies in the
US, Peabody Energy has exploited coal deposits in
Australia as well as Venezuela, besides owning several
large-scale open-pit coalmines around its homeland.
Recently, the US-based company set up the representative
office in Beijing. "We expect to become one of the
important producers in the Chinese coal field on the
strength of our abundant capital advantage and mature
sales network," Tayeb Tahir, president of Peabody
Energy China, said frankly.
Currently, China is actively promoting the integration
of highly-fragmented coal industry, in an effort to
create thirteen coal production bases across the country.
Each of them is estimated to achieve an annual output
of more than 100 million tons.
As a matter of fact, it is indeed a lucrative opportunity
for foreign investors, by reason that these bases
above need to upgrade the production capacity via
introducing advanced technologies from the overseas
This year, with regulatory approvals from Chinese
aughorities, AAGI started exploiting Daning Coalmine
in Shanxi, a coal-rich province in north China, in
cooperation with a local company.
It grew into the first foreign energy company making
performance in the Chinese coal exploitation field.