ANKARA
China is deploying its energy investments to neighboring countries to reduce its emissions and dependence on conventional domestic sources such as coal, according to a report released by Asian Development Bank.
China, the world's largest energy consumer, depends on coal for 60 percent of its electricity production. And it is trying to reduce this number as environmental concerns rise while the demand continues to increase rapidly.
The report, titled "Energy Security in Asia," states that due to use of coal in power stations, industries and as a domestic fuel, the average air quality in 45 major Chinese cities was rated as poor. China’s latest air pollution alert comes on the heels of a report by the World Health Organization, which estimated that 7 million people in the country died as a result of air pollution in 2012.
Countries in the region, such as Myanmar, Indonesia, Turkmenistan and Malaysia, are the main targets for China, the report states.
China is expanding investments in Myanmar in both hydropower and hydrocarbons, according to the report. Some 45 companies are involved in 63 hydropower projects in Myanmar while two pipeline projects with a value of more $4 billion are being built by China National Petroleum Corporation.
The $2.3 billion crude oil pipeline will transfer 22 million tons of oil per year, while a $2 billion gas pipeline will have a capacity of 13 billion cubic meters per year.
The report states that China's investments in Turkmenistan may be an opportunity for China to reduce dependence on seaborne imports. China has an agreement to buy 65 million cubic meters of gas per day from Turkmenistan. The first natural gas processing plant in the country was built by China.
The gas pipeline from Turkmenistan to China has a capacity of 40 billion cubic meters natural gas annually. In addition, China provided more than $8 billion of financial support to Turkmenistan that is projected to be repaid from gas sales.
In Indonesia, Chinese companies are involved in more than 30 power plant projects with a total capacity of nearly 10,000 megawatts, while five new dam projects are planned in addition to two operational hydropower plants in Malaysia.
www.aa.com.tr/en
