David DuByne, Going West in China

Published on 30 May 2007 by Energy Bulletin. Archived on 30 May 2007.
Going West in China
by David DuByne

As I sat reading Steve Andrews article “An Energy Postcard from China”, I glanced out of my office window into the grey smog covering Chongqing, a city of 30 million people and have some thoughts to add on the expansion of this economy.

• The Chinese government continues the Go West Campaign, it is designed to convince those who are heading into big cities looking for work to go to the western cities and spur the same economic boom that is occurring along the east coast. This includes upgrades new infrastructure, additional energy generation, and the intensification of natural resource extraction in the western regions.

• Every road throughout the nation is being refinished with concrete. From highways to one lane roads that were formerly dirt, nearly every road in every province is being up graded to allow movement of goods and people at a faster pace. This would account for the usage of 45% of the worlds cement year upon year. This is expected to grow at an average annual rate of 8.5% (or 90 million metric tons) during the 2006-2007 period.

• Travelling by rail through Sichuan Province and everywhere else, parallel rail lines beside existing lines are being built for rapid transit and high speed delivery of goods and people. From now to 2010 the Chinese government plans to complete an additional 19,800 kilometers of new tracks and up grade 15,000 kilometers of existing routes.

• Where development and economic growth compete against environmentalism, conservation always falls on deaf ears. One of the most pristine areas in the western part of Yunnan province is the Nujiang Valley, which will have a series of 13 dams built that will cover a 700 kilometer section of the valley built by Huadian Corporation. This one of the last two major dam free rivers in China. The 100 billion kilowatts per hour of generated electricity would be for factories on the EAST coast of the country. In addition the power will be used in new factory complexes that are slated to come into the region to take advantage of tax breaks and special incentives to relocate there.

• One of the biggest tourist draws in Yunnan province for trekking is in the Tiger Leaping gorge, but a series of eight dams along a 564 kilometer section of the Jinsha River to provide power will alter the gorge. Lancangjiang Hydropower Development Corporation, a subsidiary of China Huaneng Group states “the dam will have an overall capacity of 20 million kilowatts, it is almost the same size as the Three Gorges Dam, but the water storage capacity in Tiger Leaping Gorge reservoir will be even bigger.” In addition to electricity generation this dam is supposed to help solve the siltation problem that is threatening to block the Yangtze Three Gorges Dam 1500 kilometers downriver.

• The new hydroelectric power sources will be for mining operations in the western portions of China as resource extraction heats up. China’s internal mining capacity will only keep consumption of metals for manufacturing at the break even point. Mining as an industry has seen 20% growth year on year. Antimony and Molybdenum along with Gold, Silver, Copper, Aluminum, Zinc, Nickel and Lead are leading the growth.

• Roads leading to the Myannmar border are being expanded to four lanes as new sea ports and oil loading platforms are within easy reach and accessible in the Bay of Bengal from the west of China.

• A new natural gas field discovery containing 3.8 trillion cubic meters near Dazhou in the N.E. part of Sichuan Province was instantly slated for smelters in addition to the hydroelectric power set to come on line.

• I might add that the new find of oil in Bohai Bay is just a drop in the bucket to the needs of this insatiable economy, at best it will add 200,000 barrels per day of production, and that was the amount of new increased oil usage for last year alone.

• The Chinese government gives incentives for recent graduates to relocate or “population transfer” as its sometimes called to the second and third-tier cities of the west. Job placement and minimum guaranteed salaries are but a few of the gems offered. Additionally students who use state loans to finish their university studies may have their loans waived. The loan, up to 24,000 yuan (US$4,000) per student is paid by the Chinese government if the graduate promises to work in a western or remote region for at least three years.

• Lastly, as I listen to the never ending car horns below, I remembered reading a recent article stating that an estimated 3000 cars are added to the cities roads every day and presently 70% of Chongqing road space is filled during the day.