Xinjiang Province
Ecoal, Vol. 74, May 2011
China's coal demand is expected to grow by 40% over the next 25 years. Although China's reserves to production ratio is 38 years, coal resources in China's western province of Xinjiang would be enough to meet global coal demand for another 367 years at the current consumption rate.
According to the National Development and Reform Commission of China, coal resources in the western province of Xinjiang could be as high as 2.2 trillion tonnes.
Xinjiang occupies almost one fifth of China's territory. 40% of China's coal resources are located in Xinjiang and the province is also China's largest producer of oil and gas. However, today only 5% of coal comes from Xinjiang and its coal resources remain largely untapped.
Current Challenges
Xinjiang is located far away from the key energy demand centres in China - Beijing, Shanghai and Hong Kong. The western province is over 3000km away from the coast. As a result, effective and affordable transport is the greatest challenge for Xinjiang province to overcome if it is to become a key coal provider in China.
Options for Transport
The Chinese government is working to address the issue of transport connections between its western and eastern provinces.
A new rail link between Xinjiang and central regions of the country is under construction and it is projected to be completed by the end of 2013. As a result, coal output from Xinjiang could increase to 500Mt in 2015 and to 1000Mt in 2020, or around one third of China's current coal consumption.
Coal-based energy could also be transported by power transmission systems. Although Xinjiang is not suitable for large scale coal-fired power generation because of challenges over water availability in the province, coal could be transported via railway from Xinjiang to power plants in the central provinces of China. Coal-based electricity would then be transported through high voltage lines from the central provinces to coastal regions.
International Perspective
The future development of coal in Xinjiang could impact the dynamics of the international coal market. With coal resources as high as 2.2 trillion tonnes, the importance of Xinjiang to the international coal market is comparable to the role played by the Middle East on the international oil market. China's plans to invest in transport connections with Xinjiang mean that the province's coal potential is unlikely to be left unexplored.
