China is planning to build bigger strategic reserves of key energy resources, such as petroleum and uranium, and create an energy ministry, according to a draft law published yesterday.

However, the document made little mention of the need to develop policies to tackle soaring emissions of greenhouse gases.

Energy security emerged as a key focus for the legislation, which recommends that Chinese oil companies, such as Petrochina and Sinopec, be forced to establish their own govern-ment-managed stockpiles to augment an existing national reserve scheme.

The booming Chinese economy is increasingly dependent on imports of oil, coal and other key resources, forcing the Government to find new ways to secure supplies. However, the plan is likely to increase existing pressure on Chinese oil companies, which already are blocked by government price controls from passing rising crude oil prices on to consumers.

The draft law, which recommends that big investments in energy industries be controlled by the Government, includes plans to establish a department of energy that will be controlled by the Cabinet.

The lack of a unified government energy ministry or guiding policy has been held responsible for a string of problems in China, such as fuel shortages and price gouging.

According to state media reports, the new department would wield greater powers over energy pricing and the market than its present equivalent, an energy division that is part of the National Development and Reform Commission, the country’s main planning agency.

“China definitely needs a unified, agreed-upon energy department,” Yan Luguang, a scholar at the China Academy of Science, told the Shanghai Securities News, a state-run newspaper. “Otherwise, everyone will carry on according to his own agenda, and that doesn’t benefit the country’s energy strategy.”

There was little mention made of climate change, although the proposed law did recommend that China adjust its use of energy to protect the environment.

The Government would support recycling, emissions reductions and the development of “clean” energy resources, such as solar, wind and tidal power, and other changes “effective against climate change”, according to a copy published online by the Shanghai Securities News.

Beijing has until February 2 to collect opinions on the long-awaited draft law, which will then be presented for approval to the National People’s Congress.

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