China May End Coal Liquefying Projects

Coal-rich but petroleum-poor China may consider ending projects designed to produce petroleum by liquefying coal, the country’s economic planning agency said.

The consideration came after China’s limited energy resources and related factors were evaluated by the National Department and Reform Commission, the Chinese news agency Xinhua reported.

Liquefied coal projects consume a lot of energy, though the successful industrialization of liquefied coal could help reduce the country’s dependence on petroleum, said an NDRC official, who declined to be named.

Amid concerns over the country’s growing dependence on petroleum, the Chinese government said earlier it would begin investing more in developing alternative energy resources such as biomass fuel and liquefied coal to substitute for petroleum.

Government statistics show China imported 162.87 million tons of oil in 2006, driving the country’s reliance on imported oil up 4.1 percentage points from 2005 to reach 47 percent.