China's listed power producer Shenzhen Energy Group recently told investors about 70% of the company's coal procurement comprises seaborne coal, with domestic inland coal accounting for the remaining 30%.
This further highlighted the price advantage of seaborne coal against domestic coal, despite recent increase in seaborne freight rates.
Meanwhile, the company noted its power sales within the domestic market can benefit from the capacity-based pricing system, which can get compensation when they give way for renewable energy in grid connection. The change guarantees the company's profitability when their coal-fired power generation is curbed for renewable generation.
Shenzhen Energy also introduced its gas power segment. The company sources gas primarily from pipeline gas supplied by PetroChina, Sinopec, CNOOC, and some independently procured international LNG.
In response to fluctuations in gas market prices, the company focuses on developing downstream urban gas markets, gradually establishing economies of scale, and improving negotiation capabilities with upstream suppliers.
Regarding overseas projects, Shenzhen Energy reported that its ongoing projects, including gas-fired plants in Ghana and wind power in Vietnam, are operating smoothly.
As per the company's "14th Five-Year Plan" strategy, it will focus on the development of overseas business in key Belt and Road Initiative countries. Shenzhen Energy will continue to strengthen its operations and explore market opportunities in key countries in Africa and Southeast Asia while expanding into new markets in the Middle East.
(Writing by Alex Guo Editing by Riley Liang)
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