Jiangsu Guoxin Corp. Ltd. said it has signed a higher proportion of long-term coal supply contracts for 2023 compared with 2022 in a bid to avert large swings in domestic spot market, while noting talks of part of the contracts are still underway.
This came in response to Beijing's policy to boost domestic coal supply and ensure energy security. Since late 2021, the central government has issued a series of measures to encourage miners and power producers to sign more long-term supply contracts at capped prices.
Recent drop of spot coal prices elped lower the utility's average coal costs, Guoxin said on an investor interaction platform on May 4.
Jiangsu Guoxin aims to lift imported coal usage to over 20% in 2023, citing relative advantages in price and sulfur content against domestic coal, depending on market conditions.
The company operates two business segments. The energy business segment is mainly engaged in electricity, heat production and related power services as well as coal sales businesses. The trust business segment is mainly engaged in collective fund trusts, single fund trusts, property rights trusts and self-operated businesses. Its main businesses are in Jiangsu province in East China.
Its 2022 report showed the energy arm mainly generates and sells power and heat, provides related services, sells coal and generates power through equity stakes in new energy projects.
Its power feeds Jiangsu grid and parts of Shanxi grid. Its heat supplies local companies, public institutions and residents.
As of end-2022, Jiangsu Guoxin had 19.44 GW of controlled power generation capacity, including 14.44 GW in operation – 11.85 GW of coal-fired capacity and 2.59 GW of gas-fired capacity – and 5 GW under construction.
In 2022, its total power generation reached 66.47 TWh, of which coal-fired units generated 61.55 TWh, up 1.24% year on year. Coal-fired units in Jiangsu generated 40.042 TWh, while those in Shanxi generated 21.50 TWh.
(Writing by Alex Guo Editing by Harry Huo)
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