Global coal investment to grow 4% in 2026, reaching a 14-year high. China's largest offshore shallow-layer billion-ton oilfield fully commissioned
（2026/6/1—2026/6/7）
Author: Shu-Xin Zhang
International Energy News
1. Global coal investment to grow 4% in 2026, reaching a 14-year high
According to the World Energy Investment 2026 report recently released by the International Energy Agency (IEA) and cited by FutureCoal (formerly the World Coal Association), total global investment in coal supply, including production and infrastructure, is expected to reach approximately $180 billion in 2026. This represents a 4% increase from 2025, marking the highest level since 2012.
The report shows that China accounts for 65% of global coal investment. India is expanding its coal production and gasification capacity to reduce its reliance on energy imports. Since 2015, Southeast Asia has invested a cumulative $110 billion in the coal sector, with coal's share in the energy mix rising generally across the region.
Additionally, research by FutureCoal indicates that 90% of new coal-fired power capacity expected to come online in 2026 will use high-efficiency, low-emission technologies. China is advancing coal modernization and carbon capture projects. India plans to achieve 100 million tons of coal-to-gas production by 2030 through $4 billion in government incentives. Russia is investing approximately $6 billion to expand coking coal production and has pledged to improve transport routes to Asia. The US and Canada have streamlined approvals to advance over a dozen mining projects. Several mines in South Africa are either under construction or already in production.
2. US proposes 10% or 12.5% additional tariffs on 60 economies
The US government proposed on June 2 to impose an additional 10% or 12.5% tariff on imports from 60 economies, citing that these economies have failed to curb trade in goods produced with forced labor, which restricts US commercial activities.
Under the proposal, the US plans to impose a 10% tariff on imports from Canada, Ecuador, the European Union, Indonesia, Mexico, Pakistan, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Malaysia, and the United Kingdom. A 12.5% tariff would apply to the remaining 45 countries under investigation. The government also proposed establishing a textiles mechanism allowing a certain volume of clothing and textile imports at a lower tariff rate, though specific quotas were not disclosed. The statement noted that various products including energy, rare earths and certain other metals, beef, coffee, certain fruits and vegetables, pharmaceuticals, organic chemicals, and aircraft parts would be exempted from the tariffs.
Notably, the USTR also proposed on June 1 to impose 25% tariffs on various Brazilian goods, following an investigation into Brazil's digital trade practices and preferential tariff policies under Section 301 of the Trade Act. The office is also expected to soon release another major finding regarding excess industrial capacity targeting 16 trading partners, including China.
3. Uzbekistan's natural gas production continues to decline as import dependence rises rapidly
Uzbekistan's natural gas sector is undergoing a structural adjustment, as production continues to decline, export revenues drop significantly, and dependence on imported gas rises rapidly, reported on May 26.
Data from Uzbekistan's State Statistics Committee shows that natural gas production has fallen for the third consecutive year. From January to April 2026, gas production stood at 12.6 billion cubic meters, down 16% from 15 billion cubic meters in the same period of 2025, and down 17.6% from 15.3 billion cubic meters in the same period of 2024.
Due to the production decline, natural gas export revenues have shrunk significantly. In the first four months of 2026, gas export revenues were $129.4 million, down 35.2% year-on-year. Meanwhile, Uzbekistan continues to expand its natural gas imports, with import value reaching $508.3 million during the same period, up 53.6% year-on-year.
During the same period, Uzbekistan's production of natural gas condensate and crude oil also continued its downward trend.
Domestic energy news
1. China's largest offshore shallow-layer billion-ton oilfield fully commissioned
The first-phase development project of Kenli 10-2 Oilfield, located in the southern waters of Bohai Sea, has recently been put into production, with a daily crude oil output exceeding 2,800 tonnes, becoming a key production base in China.
The oilfield has proven geological crude oil reserves of over 100 million tonnes, making it the first billion-ton lithologic oilfield discovered in the shallow layers of the depression zone in the Bohai Bay Basin. The first-phase development project includes the construction of one central processing platform and two unmanned wellhead platforms, with a total of 79 development wells.
Kenli 10-2 is the first branched heavy oil reservoir developed offshore China. Hydrocarbons are mainly stored in narrow, winding sand bodies that interweave like the shadows of tree branches. Given the "scattered, narrow, thin, and complex" distribution characteristics of the reserves, the project has adopted an innovative combined development model integrating cold and thermal recovery.
The drilling and completion operations faced challenges including multiple well types, multiple strata, and multiple development methods. By implementing a "one sand, one reservoir, one well pattern" strategy, the team applied differentiated designs for shallow extended-reach horizontal wells, deep directional wells, and heavy oil thermal recovery wells. Breakthroughs were achieved in shallow extended-reach drilling technology, with the maximum horizontal displacement exceeding 3,000 meters — nearly three times the reservoir depth — and the hydrocarbon reservoir encounter rate increased by over 30%.
2. Unified standard introduced for measuring non-fossil energy power consumption
Five Chinese authorities, including the National Development and Reform Commission and the National Energy Administration, have jointly issued the Pilot Guidelines for Accounting Non-Fossil Energy Power Consumption, marking the establishment of a unified national standard for measuring non-fossil energy power consumption and laying an institutional foundation for implementing the dual-control system for carbon emissions.
In China, 95% of non-fossil energy is consumed in the form of electricity. Accurately accounting for this portion of electricity is fundamental to measuring the share of non-fossil energy consumption and conducting dual-control assessments of carbon emissions. Previously, accounting for non-fossil energy power consumption faced issues such as inconsistent accounting rules, insufficient coverage of accounting entities, and a lack of coordination among different policy mechanisms. The guidelines unify the accounting methods for non-fossil energy power consumption at provincial, city, and user levels.
The guidelines specify three approaches for determining the attribution of each kilowatt-hour of non-fossil energy power consumption: physical attribution, including self-generated self-used power, power used by new business models such as direct green power connection, and power consumed in the production of non-fossil energy projects; transactional attribution, including participation in electricity energy trading and green certificate trading; and apportioned attribution, mainly for non-fossil energy power not covered by the first two approaches, to ensure completeness, through inter-provincial and intra-provincial allocation.
The guidelines also define accounting methods at the provincial, city, and user levels, ensuring consistency across data sources while avoiding double-counting. At each level, each kilowatt-hour of non-fossil energy power consumption is attributed using only one method and assigned to only one entity, ensuring scientific accuracy.
3. Xizang targets 60 GW of clean energy capacity by end of "15th Five-Year Plan"
According to the recently released outline of Xizang's 15th Five-Year Plan for Economic and Social Development, the region will build a "4+4+X" modern industrial system. The first "4" refers to four pillar industries: plateau-specific agriculture and animal husbandry, clean energy, strategic resources, and cultural tourism. The second "4" covers foundational industries such as construction materials, plateau light industry, Tibetan medicine, and border trade logistics. The "X" includes emerging productive forces such as the digital economy, low-altitude economy, energy storage, geothermal energy, and green hydrogen.
Clean energy is prioritized as the leading pillar industry. By the end of the 15th Five-Year Plan period, Xizang's installed power capacity is expected to reach around 60 GW, with approximately 120 GW under construction. Currently, clean energy accounts for 97% of installed capacity and nearly 100% of electricity generation in the region. Via ultra-high voltage direct current transmission technology, green power from Xizang can reach Hubei province in just six milliseconds. Xizang will also promote the integrated development of clean energy with mining and transportation, aiming to establish a "plateau model" of a new energy system by 2030.
In terms of livelihood technology, Xizang will continue to increase investment in areas such as heating and oxygen supply, healthcare, and digital education during the 15th Five-Year Plan period.
Additionally, Xizang will implement large-scale vocational skills training programs and targeted skill enhancement campaigns for key groups. In education, the plan adds 104,000 kindergarten and basic education school seats and develops 50 typical application scenarios for "AI + education." In healthcare, the region will accelerate the construction of two national regional medical centers and strive to raise average life expectancy to 74.7 years.
(Main news sources: CCTVNEWS APP, Xinhua New Media, International Energy Network, China Energy Network, National Energy Administration)
