China's new energy security strategy quietly debut

The current world energy landscape is facing a reshuffle. The energy landscape also presents a situation of simultaneous supply and demand side “multi-polarization” and “diversification”. China's energy security strategy also needs to formulate new coping strategies.

Following last month’s huge gas bill with Russia’s “long-running 10 years”, another huge agreement in China’s energy sector quickly surfaced.

Recently, during Premier Li Keqiang’s visit to the UK, CNOOC and BP signed a long-term liquefied natural gas (LNG) supply framework agreement. It is reported that the contract value is about 20 billion US dollars.

The intensive signing of a series of international energy supply orders in a short period of time is clearly due to the consideration of the new strategic layout of China's energy security.

At the sixth meeting of the Central Financial and Economic Leading Group held recently, President Xi Jinping emphasized that in the face of new changes in the pattern of energy supply and demand and new trends in international energy development, it is necessary to promote energy consumption, energy supply, energy technology and energy systems. "revolution".

The current world energy landscape is facing a reshuffle. The energy landscape also presents a situation of simultaneous supply and demand side “multi-polarization” and “diversification”. China's energy security strategy also needs to formulate new coping strategies.

"One Belt" affects energy supply

Since the current new energy has not brought fundamental changes to the world energy landscape, how to ensure the stability of oil supply is still the top priority of China and the world's energy supply.

Although some high reserves of oil and gas resources have been discovered in the Central Asian Caspian Sea and Africa, this has not shaken the current important position in the Middle East. Data from BP show that the oil reserves in the Gulf region are more than 40 years higher than the average in the world.

"In the next century, the Middle East will remain the core of the international oil market and will become even more important in the future." Dr. Qian Xuming of the Middle East Research Institute of Shanghai International Studies University recently held the "Global Energy Security Think Tank Forum 2014". Said to reporters.

In 2013, China imported 146.65 million tons of crude oil from the Middle East, accounting for 52% of total oil imports. Last year, among the top 10 crude oil importers in China, the Middle East occupied six seats.

But the unstable factors are also accompanied by the region all the year round. Recently, the United States announced that it will withdraw some staff members of the Iraqi Embassy. The situation in Iraq may be further deteriorated.

In response, Gal Luft, co-director of the Global Security Institute and adviser to the US Energy Security Council, pointed out to reporters: "This is bad news for China, because up to 26% of Chinese energy companies invest in Iraq."

At the same time, energy cooperation between China and the Middle East faces fierce competition and challenges from the United States, Europe and Japan.

So how do you ensure the stability of the oil supply in a complicated situation?

In this regard, Xi Jinping stressed that in the future, we must pragmatically promote the “One Belt, One Road” energy cooperation and increase cooperation with oil and gas in Central Asia, the Middle East, the Americas and Africa.

“A Belt” refers to the Silk Road Economic Belt, which passes from Central Asia and the Middle East to Europe, and includes several important oil producing countries around the world.

Objectively speaking, the current contraction of the United States in the Middle East provides space for China to expand its energy cooperation with Middle Eastern countries.

"We should further promote policies such as exchange of resources and infrastructure for resources in the Middle East countries along the 'One Belt', which is an important means to guarantee China's energy supply in the future." Qian Xuming said.

In the view of Qian Xuming, this move can promote China's direct investment in non-oil fields in the Middle East and help Chinese enterprises participate in the construction and development of transportation, energy, minerals and other industries in the Middle East.

At the same time, the status of countries such as Central Asia and the Caspian Sea in the “Belt” should not be ignored to achieve the diversification of China's energy sources. The second line of the West-East Gas Pipeline project, which was completed in 2011, is an important example of energy cooperation between Central Asia and China. The third line under construction is a collection of natural gas resources from Turkmenistan, Uzbekistan and Kazakhstan.

Analysts pointed out that the way of exchange of economic and trade cooperation for local energy has been recognized and welcomed by Central Asian countries.

China Rustarmova, Turkmenistan’s ambassador to China, told reporters: “China is a major consumer of Turkmenistan’s natural gas, and China’s support has created favorable conditions for broadening and deepening bilateral relations.”

"One way" clamps energy transportation

“All the way” is the “Maritime Silk Road”, also known as the Ceramic Road. It passes through the South China Sea countries such as Vietnam and Thailand. It can reach India, Africa, the Middle East and Europe through the Straits of Malacca.

Different from the “One Belt” focus on economic and trade cooperation for energy, the situation facing China in “all the way” is much more complicated. In fact, the most important issues facing China's current energy security are more or less related to the South China Sea. The first of its kind is the safety of energy transportation.

Wang Limao, a researcher at the Institute of Geographical Sciences and Resources of the Chinese Academy of Sciences, pointed out to reporters: "China's energy transportation security depends mainly on the Malacca and South China Sea routes, but the South China Sea dispute will make China's transportation security difficult to secure."

For China, which wants to implement the “revolution” of energy supply, it must break through the current situation of transportation mainly relying on shipping and the Straits of Malacca.

Sino-Russian gas negotiations, which have finally achieved major breakthroughs after ten years of long-distance running, have already highlighted the consideration of China's energy diversification strategic thinking; the Sino-Myanmar natural gas pipeline that was ventilated throughout September 2013 is also a dilemma for China to crack the energy transportation “Malacca” Important move.

Wang Limao said: "Although we can't control the Straits of Malacca, we can bypass the Straits of Malacca."

From a global perspective, China's ideal energy supply and transportation pattern is to import Russian oil and gas from the Northeast, to meet the needs of the Southwest through pipelines such as Myanmar, and to rely on Sino-Kazakhstan, Middle-earth, Sino-Russian oil and gas pipelines to transport oil and gas from the Caspian Sea and Russia. Transfer to Xinjiang.

Wang Limao also pointed out that once only the southeast coast needs to rely on Malacca to import oil and gas, and other regions rely on onshore oil and gas pipelines as the main source of supply, China's energy security can be effectively guaranteed.

Resist the vulnerability of a single source of energy

The World Energy Blue Book: World Energy Development Report (2014), prepared by the International Energy Security Research Center of the Graduate School of the Chinese Academy of Social Sciences, points out that although the large-scale commercial production of shale gas in the United States makes its energy supply no longer completely dependent on the Middle East. Oil and gas, but the Middle East oil and gas is still the "scepter" of the United States to control the world.

Among them, as the world's single source of oil, it has led to the global energy fragility. Robert McFarlane, a former US national security adviser and co-founder of the US Energy Security Council, told reporters: "The United States is up to 95% of the things that can be moved - whether cars, boats or planes are powered by oil. This is oil. Vulnerability."

In 2013, China consumed 498 million tons of oil and its dependence on foreign countries was 58.1%. It is the world's largest oil importing country. According to the report of the China Petroleum Economic and Technological Research Institute, China's oil demand will reach 518 million tons in 2014. Oil also controls the lifeline of China's economic development.

McFarlane said that because global energy oligarchy controls 75% of oil reserves, it has led to energy price fragility.

Therefore, while ensuring energy supply and transportation security, maintaining the stability of oil prices will become the basis of China's new energy security strategy.

The basis for determining oil prices is the liquidity of global currencies, especially the liquidity of the US dollar. Therefore, controlling the rapid growth of global liquidity is the key to effectively curbing the violent fluctuations in international oil prices and achieving a smooth operation of the global economy. The Blue Book also pointed out that controlling liquidity growth is an important responsibility of energy-consuming countries such as China, the United States, Japan, and the European Union.

More importantly, countries must pay attention to the research and development and promotion of alternative energy sources. “Alternative energy sources have proven to have great potential in some countries, such as Brazil's use of sugar cane to make ethanol, China's coal-to-ethanol project, etc. These not only replace petroleum-based fuels, but are also cleaner, more reliable and less expensive.” McFarlane said.

Elevator Modernization

Elevator modernization (or lift modernisation) is the process of upgrading the critical parts of the elevator in order for it to be able to handle new technology, have better performance, improve safety, and even give the aesthetics an up-to-date appeal

Most elevators are built to provide about 20 years of service, as long as service intervals specified and periodic maintenance/inspections by the manufacturer are followed. As the elevator ages and equipment become increasingly difficult to find or replace, along with code changes and deteriorating ride performance, a complete overhaul of the elevator may be suggested to the building owners.

A typical modernization consists of controller equipment, electrical wiring and buttons, position indicators and direction arrows, hoist machines and motors (including door operators), and sometimes door hanger tracks. Rarely are car slings, rails, or other heavy structures changed. The cost of an elevator modernization can range greatly depending on which type of equipment is to be installed.

Modernization can greatly improve operational reliability by replacing mechanical relays and contacts with solid-state electronics. Ride quality can be improved by replacing motor-generator-based drive designs with Variable-Voltage, Variable Frequency (VVVF) drives, providing near-seamless acceleration and deceleration. Passenger safety is also improved by updating systems and equipment to conform to current codes.

Components needs to be replaced in different elevator modernization plan

Component	Scheme of elevator modernization plan
	Refurbishment work	Partial modernization	Full modernization	Full replacement
Elevator car
Sling	No	No	by building owners	Yes
Door operator	No	by building owners	Yes	Yes
Cab design	by building owners	by building owners	Yes	Yes
Car doors	by building owners	by building owners	Yes	Yes
Car fixtures	Yes	by building owners	Yes	Yes
Wedges connected to the governor	No	No	Yes	Yes
Additional phone/intercom if they don't equipped	by building owners	Yes	Yes	Yes
Traveling cable	No	Yes	Yes	Yes
Hydraulic rams	No	No	No	Yes
Wire ropes	No	by building owners	Yes	Yes
Shaft
Counterweight	No	No	No	Yes
Guide rails	No	No	No	Yes
Buffers	No	No	Yes	Yes
Electrical components	No	No	No	Yes
Tapehead	No	Yes	Yes	Yes
Limit switches	No	Yes	Yes	Yes
Wiring	No	Yes	Yes	Yes
Compensations	No	No	No	Yes
Lobby
Shaft door components	by building owners	by building owners	Yes	Yes
Shaft doors	by building owners	by building owners	by building owners	Yes
Hall fixtures	Yes	by building owners	Yes	Yes
Machine room
Machines	No	by building owners	Yes	Yes
Controllers	No	Yes	Yes	Yes
Removal of the selector	by building owners	Yes	Yes	Yes
Overspeed governor	No	No	Yes	Yes
Additional unintended car movement protection device if they don't equipped	by building owners	by elevator safety code in countries
Backup battery or uninterruptible power supply	No	Yes	Yes	Yes

Benefits of elevator modernization

Modernization can greatly improve operational reliability by replacing mechanical relays and contacts with solid-state electronics. Ride quality can be improved by replacing motor-generator-based drive designs with Variable-Voltage, Variable Frequency (VVVF) drives, providing near-seamless acceleration and deceleration. Passenger safety is also improved by updating systems and equipment (such as double brake system, unintended car movement protection device on the brake system etc.) to conform to current codes.

With CEP traction elevator modernization, we use the existing elevator structure while upgrading the ride quality and reliability with state-of-the-art components. Upgrade to a CEP closed loop door operator or a sophisticated, energy saving VVVF inverter.

CEP traction elevator modernization can include:

• CEP Microprocessor Based Control System
• CEP Microprocessor Based Efficient Dispatch System
• Energy Efficient AC Drives or SCR Drives on Existing AC Gearless Machines
• Traction Machines (Geared / Gearless)
• Rope Brake System
• CEP Closed Loop Door Operating System
• Car & Hall Pushbutton Fixtures & Indicators
• Car & Counterweight Roller Guides
• Seismic Upgrades
• Security Upgrades
• Cab Interior Renovations or Cab Replacement

NOTE: Complete tear-out modernizations are available.

Contact us TODAY for Right Modernization Package Available

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