China NDRC: to accelerate building of reserve system

China NDRC: to accelerate building of reserve system

China’s NDRC to Accelerate Development of Energy Reserve Systems

The National Development and Reform Commission (NDRC) has announced plans to expedite the construction of strategic energy reserve systems, focusing on coal and oil to enhance energy security and stabilize markets. These initiatives aim to address supply volatility and geopolitical risks while supporting China’s transition to a more resilient energy infrastructure.

Coal Reserve System Finalized The NDRC has finalized regulations to establish a coal production reserve system by 2027, targeting 300 million tonnes of dispatchable coal production annually by 2030. This system will maintain coal reserves at 15% of annual output, ensuring rapid access to production capacity during price spikes or supply shortages. Priority will be given to large-scale, modern mines in key regions such as Shanxi and Inner Mongolia. Mines designated for the reserve will be exempt from long-term supply contracts, allowing flexibility to respond to market demands. The initiative seeks to stabilize thermal coal prices and secure power generation during periods of strain.

Oil Reserve Expansion Accelerates Simultaneously, China is rapidly expanding its oil storage capacity, with state-owned companies like Sinopec and CNOOC constructing 11 new reserve sites. According to reports, these projects will add 169 million barrels of storage by 2026, with 37 million barrels already completed. The expansion follows heightened geopolitical risks, including tensions involving Russia and Iran, and aims to store at least two weeks of China’s net crude imports. The government is blurring lines between strategic and commercial reserves, integrating both under national oversight to enhance flexibility. Recent legislation mandates companies to maintain government-supervised “social responsibility” reserves, managed by state oil firms under the National Food and Strategic Reserves Administration.

Strategic Implications These measures reflect Beijing’s broader strategy to mitigate vulnerabilities in its energy supply chain, particularly as China remains the world’s largest oil importer. By bolstering reserves, the NDRC aims to absorb global supply gluts, support prices, and ensure emergency preparedness. Analysts note that the combined coal and oil reserve systems will strengthen China’s energy security while providing a buffer against market disruptions.

(https://www.mining-technology.com/news/ndrc-coal-reserve/): China’s NDRC finalizes coal production reserve system (mining-technology.com)
(https://www.reuters.com/business/energy/china-accelerates-oil-reserve-site-build-amid-stockpiling-drive-2025-10-07/): China accelerates oil reserve site build amid stockpiling drive (Reuters)