SHANGHAI (AFX) - China is expected to invest up to 18 trln yuan in the energy sector in 2006-2020 to meet development needs, the country's top economic planning agency said.

The National Development and Reform Commission (NDRC) said in a research report that the total for the 15-year period includes spending on renewable energy. It did not give a breakdown of the spending.

The powerful economic planning body suggested the investments could be financed by setting up an industry investment fund, introducing venture capital as well as bond issues by energy companies, seeking overseas or private investment and raising funds on equity markets, according to a report in the China Securities Journal.

China's production of crude oil is expected to rise four pct this year from last year to 190 mln tons, the NDRC said in the report.

The official Xinhua news agency reported earlier that China's demand for crude will reach 331 mln tons in 2006, up 6.65 pct from 2005.

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