Ordos signs deals to secure national coal supply

The city of Ordos in North China's Inner Mongolia autonomous region recently held a signing ceremony to memorialize its deal to supply coal to other parts of China.

It has been reported that an agreement for a total of 668 million metric tons of coal was signed to satisfy China's energy demands for 2023.

Ordos will also undertake the task of supplying 2.65 million tons of coal to Inner Mongolia autonomous region for 300 yuan lower per ton than the market price.

Since 2021, national coal prices have risen because of multiple factors. Coal-consuming enterprises such as power generation, heating and chemical industry are facing greater pressures because of this.

Stabilizing energy prices, balancing supply and demand and increasing coal supply are the key tasks that Ordos city has undertaken.

Since the beginning of this year, Ordos has made every effort to promote the increase of its coal production capacity due to supply pressure.

To date, one-fifth of China's total coal production has been produced in Ordos, and 539 million tons of coal has been delivered to cities outside Ordos.

Ordos is one of 14 large-scale coal bases and the four modern coal chemical industry demonstration areas, and a coal power base.

The city has 210.2 billion tons in coal reserves, accounting for about one sixth of the country's total, and possesses nearly 5 trillion cubic meters of natural gas reserves, accounting for one third of the country's total.