Chinese utility Jiangsu Huadian Energy Co., Ltd. expects to import over 3 million tonnes of coal this year, as it steps up efforts to cut cost while maintaining stable supply of the fuel, Xinhua Finance reported.

Since the fourth quarter, the power producer has organized five batches of imported coal deliveries to subsidiaries for blending with higher-cost domestic coal, saving 8 million yuan ($1.1 million) in purchase cost and 2.8 million yuan in logistic cost.

Leveraging its advantages at Jurong port, Jiangsu Huadian has strengthened procurement of imported coal. With Jurong power plant as the main procurement body, the purchased imported coal is also delivered to other power plants, including Wanting and Yangzhou plants, owned by parent China Huadian Co., Ltd. This helped improve customs clearance and reduce logistic cost, the report said.

Jiangsu Huadian said it has established a "centralized procurement, large-scale dispatch, rapid consumption, higher efficiency" system where fuel procurement is coordinated regionally. It noted subsidiary plants have worked to maximize the usage of cost-effective imported coal grades.

As one of China Huadian's key coastal power and coal logistics projects, Jiangsu Huadian Energy is the largest power producer in eastern China's Jiangsu with power generation over 20 TWh annually, helping ensuring energy security in the Yangtze River Delta region.

(Writing by Alex Guo  Editing by Harry Huo)
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