China Huaneng Group, the largest power enterprise in China, has signed a seven-year medium-to-long term coal supply agreement with China National Coal Group.
China National Coal Group will provide high quality steam coal of 10 million tons from 2009, annually increasing to 15 million tons in 2015 during the seven years for China Huaneng Group. The two agree to withstand market risks together, and establish a stable and long-term strategic partnership to guarantee China's energy security.
The cooperation will foster the deep development of the strategic cooperation between power and coal industries, and is good to ease the current power and coal supply uncertainties and to ensure the normal operation of the national economy.
China Huaneng Group and China National Coal Group are both large state-owned energy enterprises. By the end of this August, China Huaneng Group had 101 wholly-owned and joint holdings power plants inside and outside China, an installed capacity of 77 million kilowatts. China National Coal Group's coal production in 2007 reached 105 million tons, giving it a leading position in coal coking, coal processing equipment, and coal mine construction.
