International energy agency expects significant oil market surplus by 2027. China's largest single-unit capacity high-altitude wind power project connected to grid
（2026/6/22—2026/6/28）
Author: Shu-Xin Zhang
International Energy News
1. International energy agency expects significant oil market surplus by 2027
On June 17, the International Energy Agency stated in its monthly oil market report that the world oil market would gradually recover from the impact of a potential closure of the Strait of Hormuz and would experience a significant supply surplus by 2027. In its first outlook for 2027, the agency projected that global oil supply would surge by an average of 8 million barrels per day next year, while demand would grow by only 2 million barrels per day. The agency noted that this could offer some relief to the market and create opportunities to replenish depleted inventories or build new strategic reserves, as countries reassess their energy strategies and policies in response to the crisis.
The United States and Iran reached an agreement to end the three-month conflict. The agency stated that if the agreement holds, exports and production in the Gulf region should gradually recover—particularly once the U.S. embargo is lifted, which would allow Iran's oil exports to fully resume.
2. United States temporarily lifts sanctions on Iranian oil
The U.S. Treasury Secretary announced via social media on the 22nd that, as part of the negotiation framework between the United States and Iran, the Treasury Department had issued a 60-day general license authorizing the production, delivery, and sale of Iranian oil.
According to a notice issued the same day by the Office of Foreign Assets Control of the U.S. Treasury, transactions involving the production, delivery, and sale of Iranian crude oil, petrochemicals, and petroleum products—previously prohibited under multiple U.S. executive orders and regulations—are now exempted through August 21, 2026. The notice also indicated that imports of Iranian crude oil, petrochemicals, and petroleum products into the United States are permitted.
The United States and Iran held negotiations on June 21–22 in Bürgenstock, Switzerland, and reached an agreement. Iranian Foreign Minister Abbas Araghchi posted on social media on the 22nd, stating: "Exports of oil and petrochemical products have been granted exemptions, the embargo has been lifted, some assets have been unfrozen, and a major Iranian reconstruction and development program has been initiated."
Under the memorandum of understanding recently concluded between the two countries, the United States committed to issuing waiver licenses from the date of signing until the lifting of sanctions, permitting exports of Iranian crude oil, petroleum products, and derivatives, as well as associated services including banking transactions, insurance, and shipping.
3. Saudi Arabia's largest single-unit capacity wind power project connected to grid
On June 10, the 600 MW Al-Ghat Wind Power EPC Project in Saudi Arabia, undertaken by SEPCOIII Electric Power Construction Co., Ltd., a subsidiary of PowerChina, achieved a major milestone—all 80 turbines were successfully connected to the grid, laying a solid foundation for the subsequent 168-hour reliability operation.
The project employs domestically manufactured 7.7 MW wind turbines, which represent the largest single-unit capacity in Saudi Arabia's wind power sector. Upon completion, the project will provide clean and stable electricity to hundreds of thousands of residents, reducing dependence on long-distance power transmission. It is expected to reduce carbon dioxide emissions by approximately 1 million tons annually, equivalent to planting nearly 50 million trees.
The full grid connection of all 80 turbines marks another important milestone for the project team, following the substation energization, the first turbine grid connection, and the completion of all turbine installations. The successful achievement of this milestone fully demonstrates the team's strong execution capability in overcoming challenges and working continuously, further highlighting the company's professional expertise and performance capacity in overseas renewable energy project development.
Domestic energy news
1. World's first 630°C double-reheat ultra-supercritical 1,000 MW coal-fired unit enters commercial operation
On June 19, China Datang Corporation announced that the world's first 630°C-class double-reheat ultra-supercritical 1,000 MW coal-fired unit—Unit 1 of the Datang Shandong Yuncheng 630°C National Power Demonstration Project—had successfully completed its 168-hour full-load trial operation and officially entered commercial service.
In coal-fired power generation, unit parameters are the primary determinants of thermal efficiency and economic performance. By raising parameter levels, optimizing system architecture, and upgrading critical materials, the project has successfully broken through the efficiency bottlenecks of conventional coal-fired technology. The unit achieves a design thermal efficiency of 50.05%, with main steam pressure raised to 35.5 MPa and reheat steam temperature elevated to 631°C, while net coal consumption is reduced to 256.28 g/kWh—making it the world's first coal-fired power project with thermal efficiency exceeding 50%.
The project integrates a range of advanced technologies, including a double reheat system and flue gas waste heat recovery, and marks the first engineering application of C630R and N-FB2 turbine rotors, T91 water wall components, and other novel heat-resistant steel core parts. It also achieved the first commercial deployment of domestically produced G115 martensitic heat-resistant steel, setting four world records among comparable units in terms of steam temperature, pressure, efficiency, and coal consumption.
The project comprises two units. Once fully operational, the two units will save 208,000 metric tons of standard coal annually, reduce carbon dioxide emissions by 540,000 metric tons per year, and generate electricity from the saved coal sufficient to meet the annual demand of 250,000 households. The project has also addressed the long-standing reliance on imported high-end heat-resistant materials, filled multiple technological gaps, and significantly advanced the upgrade of China's entire coal-fired power industry chain—laying a solid foundation for the continued iteration of ultra-supercritical power generation technology and the independent control of core technologies.
2. China's largest single-unit capacity high-altitude wind power project connected to grid
China Datang Corporation announced that the first 11.1 MW turbines of the Datang Julongliang Wind Farm Expansion Project—China's largest high-altitude wind power project in terms of single-unit capacity—were successfully connected to the grid on June 19, marking a new breakthrough in the large-scale application of high-capacity wind turbines in high-altitude and alpine regions.
Located in Xundian Hui and Yi Autonomous County, Kunming, Yunnan Province, the project sits at an average altitude of approximately 3,239 meters. The 11.1 MW turbines now in operation were custom-developed for the complex high-altitude mountain environment, with a tower height of 125 meters and a rotor diameter of 221 meters, yielding a swept area equivalent to 5.5 standard football pitches. To address operational challenges unique to high-altitude regions—including low air density and strong turbulence—the project implemented targeted optimizations to turbine control algorithms, nacelle cooling systems, and blade aerodynamic profiles, effectively mitigating risks such as stall and vortex-induced vibration. In addition, taking into account the site-specific wind speed characteristics, the project optimized turbine configurations in consideration of substation integration capacity and site conditions, avoiding energy losses caused by access bottlenecks and significantly improving overall power generation efficiency.
The project has a total installed capacity of 158.22 MW and includes a 220 kV transmission line of approximately 40.27 kilometers to ensure stable and efficient delivery of clean electricity. Upon full completion and operation, the project is expected to generate approximately 462 million kWh of electricity annually, saving 140,000 metric tons of standard coal and reducing carbon dioxide emissions by 380,000 metric tons per year—enough to meet the annual electricity demand of approximately 180,000 households. The project is of significant importance for optimizing the regional energy mix and promoting green and low-carbon development.
3. Qijiang shale gas field in southwest oil and gas region achieves cumulative production of 1.5 billion cubic meters
As of June 22, the Qijiang Shale Gas Field, operated by the Southwest Oil and Gas Branch of Sinopec—the first medium-deep to deep shale gas field discovered in a complex structural zone on the margin of the Sichuan Basin—had achieved cumulative natural gas production of 1.5 billion cubic meters since coming into production.
Located in Qijiang District of Chongqing and Xishui County of Guizhou Province, the Qijiang Shale Gas Field features complex regional geological conditions and significant variations in shale burial depth. It represents a key component of the Sichuan-Chongqing region's national-scale 100-billion-cubic-meter natural gas (shale gas) production base.
The company has assembled a dedicated research team to pursue ongoing technological innovation and process optimization, developing deep shale gas seismic prediction technologies and three-dimensional fracture network fracturing techniques that have effectively enhanced single-well productivity. The company has also been steadily advancing the construction of drilling platforms and production wells, with multiple new wells coming online and production capacity continuing to expand. In addition, the project has established a "upper oil, lower gas" three-dimensional accumulation pattern, further diversifying the types of unconventional resources in the region and providing strong support for large-scale development. Looking ahead, the Southwest Oil and Gas Branch will continue to intensify exploration and development efforts in shale oil and gas resources, optimize development technologies, refine production systems, and steadily expand production capacity—committing to efficient and stable production at the field while improving quality and increasing output.
(Main news sources: CCTVNEWS APP, Xinhua New Media, International Energy Network, China Energy Network, National Energy Administration)
