Related Articles
Forward article link
Share PDF with colleagues

The China coal-to-gas effect

The country's policy to cut coal production capacity has sent prices around the globe soaring. It’s good news for Europe's decarbonising efforts

Coal-to-gas switching in Europe's power sector has surged as more Chinese coal buying and some supply outages pushed coal prices higher. In 2014 and 2015 China's coal demand contracted as economic growth slowed and the government implemented measures to curb pollution. Meanwhile, the country's soaring coal output exacerbated a global supply glut. But this year China has taken steps to reduce the overcapacity by pledging to close 0.5bn tonnes over the next three to five years-a 15% cut on 2015 levels. The cuts have filtered through to European coal prices. Rotterdam coal futures have risen from around $47.85 per tonne in mid-October 2015 to almost $74/t at the same time this year. Between S

Also in this section
As good as it gets for Opec
20 March 2017
Compliance with the Opec deal is defying the group's sceptics. How long can it last?
Bank the cash
15 March 2017
Opec can make or break whole economies. But its news is also a big deal for part-time day traders
Oil on troubled waters in Europe
6 March 2017
Demand has perked up. But politics will weigh on consumers in 2017