Experts suggested China set up a state energy base in Inner
Mongolia Autonomous Region to ease its energy thirst, according to
a survey report released on Tuesday.
The survey was co-conducted by senior researchers from the
National Development and Reform Commission, Development Research
Center of the State Council, Chinese Academy of Sciences and the
Ministry of Finance.
"To plan and establish strategic energy bases at state level in
the spirit of 'giving priority to energy saving and diversifying
energy consumption with the utility of coal at the core' is the
fundamental solution to meet the country's huge energy demand,"
said Duan Lianao, initiator and writer of the report.
Inner Mongolia has made itself outstanding by its geographic
significance and rich energy resources.
Spanning northeast and northwest China, Inner Mongolia is close
to several manufacturing bases and large markets of the country,
such as Hebei, Liaoning, Jilin and Heilongjiang provinces.
Statistics show Inner Mongolia is home to an abundance of
resources, including coal, oil, natural gas and wind.
The region has proven coal reserve of 676.34 billion tons,
ranking first among all the provincial regions throughout the
country. It also has proven oil reserve of 700 million tons and the
proven natural gas reserve of the Ordos Basin in Inner Mongolia
accounts for 40 percent of the nation's total reserve.
In recent years, more and more electricity has been delivered
from Inner Mongolia to the eastern cities like Beijing and
Shanghai, where the economy is more developed. According to the
country's development plan, Inner Monglia will be built into
China's largest power base by 2010.
"With the soaring international oil prices, building strategic
energy bases is our inevitable choice. Moreover, Inner Mongolia
itself will benefit from the process of construction," said Jiang
Yuezhong, expert with Chinese Academy of Social Sciences.
Foreign analysts predicted China's oil consumption would climb
at an annual pace of 3 percent in the coming years. The dependence
on imports would reach 50 percent by 2020.
China had set up its first national oil reserve base in December
18, 2007, a move to offset oil supply risks and reduce the impact
of fluctuating energy prices worldwide on China's domestic market
for refined oil.
(Xinhua News Agency January 2, 2008)