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China plans to produce 193 million tons of crude oil and 92 billion cubic meters of natural gas in 2010 as rapid economic growth boosts energy demand, said the nation's top planning agency.

The country pledges to apply new technologies and increase investment to boost oil and gas output, according to China's Eleventh Five-Year Plan for Energy Development (2006-2010) released by the National Development and Reform Commission on Tuesday.

The plan said China, the world's second-biggest energy consumer, will also draw up incentives to encourage investment in oil and gas exploration and production.

It said China will step up development of renewable and nuclear energy and hydropower to encourage environmental protection. It will also ensure people who are displaced by the projects are provided adequate resettlement.

China will speed up development of its six major coal production bases and hydropower stations on the upper reaches of the Yellow River, and middle and upper reaches of the Yangtze River and several of its major tributaries, according to the plan.

The plan also said China will strive to limit its energy consumption to 2.7 billion tons of standard coal, an annual growth of four percent between 2006 and 2010.

It said China aims to produce 2.4 billion tons of standard coal in 2010, an annual growth of 3.5 percent.

China will strive to cut energy consumption per 10,000 yuan (US$1,370) of gross domestic product from 1.22 tons of standard coal in 2005 to 0.98 tons in 2010, an annual decrease of 4.4 percent, said the plan.

Last year the country lowered its energy consumption per unit of GDP by 1.23 percent, falling short of its 4 percent reduction target.

China also pledged to reduce emission of sulfur dioxide by 8.4 million tons and that of carbon dioxide by 360 million tons during the five-year period.

To achieve the target, the country needs to optimize its economic structure and focus more on recycling and growing the service sector and high-tech industries, the commission said.

The plan also calls on China to build its strategic oil reserves, and speed up construction of oil and gas pipelines and terminals to offset surging oil prices and prepare for possible supply cuts.

The plan noted China will reform its pricing system of oil and natural gas to encourage energy efficiency.

It added the nation will also step up efforts to develop substitute energy to cut its dependency on oil. The commission said oil imports accounted for more than 40 percent of China's oil consumption.

China saw an increase in its total energy consumption in 2006. The consumption included 2.37 billion tons of coal, up 9.6 percent year on year; 320 million tons of crude oil, up 7.1 percent; 55.6 billion cubic meters of natural gas, up 19.9 percent. 

(Xinhua News Agency April 11, 2007)