Recently, the National Development and Reform Commission ("NDRC") has issued the Circular on Effectively Guaranteeing the Operation of Coal, Power, Petroleum and Gas (the "Circular").
The Circular clarifies that efforts should be made to strengthen the operating adjustment to strive to safeguard the safe and steady supply of these resources, remain problem-oriented to focus on addressing problems and overcoming difficulties in major areas, and uphold bottom line thinking to work out scientific emergency response plans. With regard to "safeguards to ensure the safe and steady supply of the said resources", among other things, the Circular calls for better analyzing, researching and judging the economic operation status and trend, advancing the release of quality coal capacity at a more rapid pace, generating and supplying power in a steady manner, enhancing the capacity for safeguarding the supply of petroleum products and natural gas, strengthening coordination and guarantee for the transportation, and ensuring work safety. Furthermore, the Circular states that relevant enterprises should, depending on variations to the supply and demand in the market at key time frames, in major regions and in critical sectors, better connect the production, transportation and sales, provide more satisfying services for the convenience of the public, maintain a reasonable inventory to meet the demands for various petroleum products in different brands, and particularly guarantee the supply of diesel with lower solidifying point demanded in severely cold areas, giving priority to major demands for diesel along highways and in downtown areas.