Are you aware of the nine coal-to-natural gas projects that Xinjiang is planning to implement?
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01. **Energy Group Xinjiang Energy Co., Ltd.’s 4 billion cubic meters per year coal-to-natural gas project in Zhundong** – Energy Group Xinjiang Energy Co., Ltd. is planning to build a coal-to-natural gas project in the Zhundong area, with an overall capacity of 4 billion cubic meters per year. The project will be implemented in two phases: Phase 1 will have a capacity of 2 billion cubic meters per year, and Phase 2 will also have a capacity of 2 billion cubic meters per year. The total investment required is approximately 25.037 billion yuan. The project covers an area of around 400 hectares, and it will enable the annual conversion of 16.12 million tons of raw coal into natural gas on-site. All the key processes in this project utilize domestic technologies and equipment, thereby creating a demonstration project for a complete set of domestic coal-to-natural gas technology systems. The gasification technology employs a combination of pressurized coal gasification and pressurized pulverized coal gasification; the air separation unit makes use of advanced domestic air separation technologies and equipment ； The shift conversion will adopt a mature domestic medium-pressure sulfur-resistant shift process ； The desulfurization and decarbonization processes are planned to utilize the mature low-temperature methanol washing technology available in China. The methane synthesis process is planned to utilize the methanation technology developed by the Dalian Institute of Chemical Physics in China. For flue gas desulfurization in this project, the high-temperature Claus reaction inside the furnace combined with the ECOSA® process is planned to be used, while for nitrogen oxide control, clean fuel gas, ultra-low NOx burners, and flue gas recirculation technology will be employed to ensure compliant emissions. Under normal operating conditions, all treated production wastewater is reused after being separated into different streams. This project also includes plans to build 1,000 MW of wind and solar power generation facilities, as well as 1 GW of photovoltaic power plants for hydrogen production, combined with carbon capture, utilization, and storage (CCUS) technology, in order to reduce coal consumption and lower carbon dioxide emissions. The construction scope of this project shall be subject to the final version of the feasibility study report provided by the construction entity. On January 8, 2024, a tender announcement was issued for the services related to the preparation of the environmental impact assessment report for **Energy Group Xinjiang Energy Co., Ltd.’s 4 billion cubic meters per year coal-to-natural gas project in Zhundong. China Global Engineering Corporation won the bid for these services. On March 7, 2024, the website of the **-level Jundong Economic and Technological Development Zone in Xinjiang published the first set of information regarding the environmental impact assessment of the 2 billion cubic meters per year coal-to-natural gas project carried out by **Energy Group Xinjiang Energy Co., Ltd.: Project name: 2 Billion Cubic Meters Per Year Coal-to-Natural Gas Project by **Energy Group Xinjiang Energy Co., Ltd.; Location of construction: Jundong Economic and Technological Development Zone in Xinjiang; Nature of construction: new construction; Scope of construction: The main production facilities for this 2 billion cubic meters per year coal-to-natural gas project include units for gasification, shift reaction and heat recovery, purification, methanation, sulfur recovery, air separation, natural gas drying and compression at the initial station, as well as hydrogen production through water electrolysis. In addition, there are associated storage and transportation systems as well as auxiliary infrastructure.
02. China Coal Group Xinjiang Energy Co., Ltd.’s 4 billion cubic meters per year coal-to-natural gas project: China Coal Group will construct a coal-to-natural gas facility with an annual production capacity of 4 billion cubic meters in the Santanghu Industrial Park in Bariqun County, Hami. The total investment for this project is approximately 32 billion yuan, and it is designed to process 10 million tons of raw coal per year. China Coal Group Xinjiang Energy Co., Ltd. is responsible for its construction and operation. This project relies on the No. 1 strip mine of China Coal in Tiaohu to produce syngas through gasification and purification; subsequent to that, natural gas is generated via methane synthesis units and delivered via pipeline networks. At the same time, this project integrates large-scale green power facilities to produce 20,000 cubic meters per hour of green hydrogen, thereby reducing the energy consumption and CO2 emissions of coal-based chemical projects with high energy demands; it also includes the construction of a renewable energy power generation facility with a capacity of 400,000 kilowatts that utilizes both wind and solar energy. On January 19, 2024, China Coal Group Xinjiang Energy Co., Ltd. issued a public notice regarding the procurement process for the social stability risk analysis and assessment of the 4 billion cubic meters per year coal-to-natural gas production route under the Multi-Energy Integration Comprehensive Demonstration Project for the clean and efficient conversion of coal in Tiaohu, as well as a public notice for the procurement of services related to the preparation of a water resource assessment report for the same 4 billion cubic meters per year coal-to-natural gas production route.
03. Xinjiang Energy (Group) Co., Ltd.’s 4 billion cubic meters per year coal-to-natural gas project: The coal chemical project at the Santanghu mining area operated by Xinjiang Energy (Group) Co., Ltd. is one of the key projects outlined in the group’s 14th Five-Year Plan, with an investment amount of 50 billion yuan planned. The Shitoumei No.1 open-pit coal mine of Xinjiang Energy Group is the only coal mine in the Santanghu mining area that has been built and put into operation. Its approved production capacity is 15 million tons per year, and the coal features low ash content, high calorific value, and low levels of harmful elements, making it possible to provide a high-quality and sufficient supply of coal for coal chemical projects. The 4 billion cubic meters per year coal-to-natural gas project of Xinjiang Energy Group is located in the Tiaohu Area Coal Chemical Industry Base within the Barkol Santanghu Industrial Park in Hami City, Xinjiang. The total investment for this project is approximately 30 billion yuan. In September 2022, an expert review meeting for the pre-feasibility study report of Xinjiang Energy (Group) Co., Ltd.’s 4 billion cubic meters per year coal-to-natural gas project, hosted by China International Engineering Consulting Corporation, was held in Beijing. After completing all the stages of feasibility study for the project, it proceeds to the expert review phase. The meeting heard a report on the preparation progress and outcomes of the pre-feasibility study for this project, and conducted a comprehensive review of the report through methods such as reviewing relevant materials and holding group discussions. Throughout the review process, the leaders and expert group presented their arguments in a structured manner, from insightful perspectives with clear viewpoints. Both the reviewers and the compilers engaged in useful and thorough discussions and exchanges regarding various issues in the pre-feasibility report. The preparation of this pre-feasibility report was carried out by Saiding Engineering Co., Ltd. This meeting marks substantial progress in the preliminary work for Xinjiang Energy Group’s coal-to-natural gas project, laying the foundation for subsequent tasks such as feasibility studies and design.
04. The 4 billion cubic meters per year coal-to-natural gas project by Xinjiang Longyu Energy Zhundong Coal Chemical Co., Ltd. Henan Energy Group Co., Ltd. plans to invest 20 billion yuan during the 14th Five-Year Plan period to construct this coal-to-natural gas project with an annual production capacity of 4 billion cubic meters, as well as projects such as the Jijihu underground mine with an annual output of 15 million tons. Xinjiang Longyu Energy Zhundong Coal Chemical Co., Ltd. (referred to as “Xinjiang Longyu”) is responsible for the construction and operation of the project; once completed, it will be able to process over 15 million tons of coal on-site. The coal-to-natural gas project will serve as an “energy island” for Henan’s future Zhundong Modern Coal Chemical Industry Base. It will give way to a range of high-end chemical products such as coal-to-olefins and biodegradable plastics, thereby making full use of the available resources and achieving clean and efficient production, while also facilitating the local conversion of the region’s abundant coal resources. In November 2023, Henan Energy and Chemical Group Chemical New Materials Co., Ltd. organized an internal review meeting for the \"Feasibility Study Report on the 4 billion cubic meters per year coal-to-natural gas project of Xinjiang Longyu Energy Zhundong Coal Chemical Co., Ltd.\" The evaluation expert group conducted in-depth and detailed discussions on the feasibility study report prepared by Saiding Engineering Co., Ltd., covering aspects such as the current state of the industry, process equipment, electrical instruments, safety and environmental protection, energy conservation and carbon reduction, investment estimates, risk analysis, as well as the availability of coal, water, and electricity resources. They offered many constructive suggestions. The expert panel believes that the overall project concept, construction scale, site selection, and main process technologies proposed in the feasibility study report are generally reasonable and feasible. Saiding Engineering Co., Ltd. will promptly revise and improve the feasibility study report in light of the suggestions put forward by the expert group. The successful convening of the internal review meeting has laid a solid foundation for the further advancement of subsequent work on this project.
06. Xinjiang Qiya Chemical Co., Ltd.’s 6 billion cubic meters per year coal-to-natural gas project: Xinjiang Qiya Chemical Co., Ltd. is a wholly-owned subsidiary established by the Qiya Group in June 2022 to develop its coal chemical industry segment, with a registered capital of 5 billion yuan. Itsya Group is a large enterprise group that operates in five major sectors: aluminum-based products, silicon-based products, new energy, coal chemical industry, and mining. During the 14th and 15th Five-Year Plans, taking advantage of the abundant coal resources in the Zhundong region of Xinjiang, the group plans to build projects for producing 6 billion cubic meters per year of coal-to-natural gas, 600,000 tons per year of synthetic ammonia, 5 million tons per year of methanol, as well as new materials derived from methanol, in order to strengthen its coal chemical industry sector. It is reported that the coal-to-natural gas project of Xinjiang Qiya Chemical Co., Ltd. is located in Jiangjunmiao, the Zhundong Development Zone in Xinjiang. The first phase of this project has an annual production capacity of 2 billion cubic meters of natural gas, with a total investment of 16 billion yuan. It utilizes advanced technologies such as large-scale dry powder semi-waste boiler gasification processes, large-scale air separation units, medium-pressure sulfur-resistant shift processes, low-temperature methanol washing technology, and large-scale methanation technologies, enabling zero wastewater discharge. The project is scheduled to start construction in 2024 and become operational in 2027. Upon the commissioning of the accompanying projects, including a 3 GW wind and solar green power plant, a 20,000-ton green hydrogen production facility, as well as CCS and green methanol plants, Xinjiang Qiya Chemical Co., Ltd. aims to become a benchmark enterprise in China’s coal-to-natural gas industry in terms of energy conservation, low carbon emissions, and environmental protection. Upon completion of this project, it is expected to generate annual operating revenues of around 18 billion yuan, pay various taxes and fees in the amount of about 1.3 billion yuan per year, and create more than 2,000 new jobs. At the same time, this project offers significant carbon reduction benefits, enabling direct CO2 emission reductions of around 1.375 million tons per year, which is no less than 20% of the total carbon emissions. Upon completion, the project will become a modern first-class coal chemical industry base in China, featuring large scale, high quality, and excellent efficiency. In October 2023, a review meeting was held for the feasibility study report of Xinjiang Qiya Chemical Co., Ltd.’s 6 billion cubic meters per year coal-to-natural gas project. On March 7, 2024, the first public disclosure of information regarding the environmental impact assessment for the first phase of Xinjiang Qiya Chemical Co., Ltd.’s project to produce 2 billion cubic meters per year of coal-based natural gas was carried out.
07. Phase II of Xinjiang Qinghua Energy Group Co., Ltd.’s 5.5 billion cubic meters per year coal-to-natural gas project. Xinjiang Qinghua Energy Group Co., Ltd.’s 5.5 billion cubic meters per year coal-to-natural gas project was the first coal deep-processing demonstration project approved by the National Development and Reform Commission during the 12th Five-Year Plan period. The first phase of this project, with an annual production capacity of 1.35 billion cubic meters of coal-to-natural gas, was completed and put into operation at the end of 2013; it has since supplied over 8.4 billion cubic meters of high-quality natural gas to the West-East Gas Transmission pipeline network on a steady basis； In 2018, Xinjiang Qinghua was designated by the National Development and Reform Commission as a key supplier of natural gas for winter supply needs; to date, it has supplied over 2.5 billion cubic meters of natural gas. Phase 2 is a coal-to-natural gas project with an annual production capacity of 4 billion cubic meters, divided into Series A and B, each with a capacity of 2 billion cubic meters. The total investment is 19.4 billion, and the planned construction period is 3 years. The Xinjiang Qinghua coal-to-natural gas project is one of the first projects in China’s coal-based synthetic natural gas industry. The first phase of this project utilized pressurized gasification of coal (16 Lurgi gasifiers, 14 in operation and 2 as backups). Since its commissioning, the project has successfully carried out demonstration tasks related to the \"4.0 MPa fixed-bed pressurized gasification technology\" and \"advanced wastewater treatment and reuse technology\", achieving the goal of zero wastewater discharge ； In July 2022, a new domestic methanation catalyst was put into use in place of the existing catalysts in the Qinghua plant in Xinjiang, marking independent innovation in China’s coal-to-gas technology and processes, and removing the biggest obstacle to the full localization of such equipment. In March 2023, industry experts organized by China International Engineering Consulting Corporation conducted a feasibility study review for the second phase of Xinjiang Qinghua’s project to produce 5.5 billion cubic meters of coal-to-natural gas per year. This marked substantial progress in the second phase of this project, and it also meant that Xinjiang Qinghua would take the lead in promoting the localization of key technologies and core equipment in the coal-to-natural gas industry. In July 2023, an on-site assessment team organized by the China Petroleum and Chemical Industry Federation went to Xinjiang Qinghua to conduct a five-day on-site assessment of the 1.375 billion cubic meter coal-to-natural gas **pilot project, which is part of the first phase of Xinjiang Qinghua’s project with an annual production capacity of 5.5 billion cubic meters of coal-to-natural gas. The on-site assessment will play a positive role in promoting the initiation and construction of the Phase II project of Xinjiang Qinghua. Leveraging its existing infrastructure, resources, and geographical advantages, Xinjiang Qinghua will, in strict accordance with the requirements of the National Development and Reform Commission, actively explore production models that make use of various gasification technologies in combination with different gasification feedstocks, thereby improving the energy conversion efficiency. It aims to highlight the project’s role as a model for the efficient and comprehensive utilization of resources, and strives to create a second-phase coal-to-gas project that is characterized by domestic production, energy savings, and innovation.
08. Wojiang Clean Energy (Jundong Economic and Technological Development Zone, Xinjiang) Co., Ltd.’s coal-to-natural gas project with an annual production capacity of 2 billion cubic meters – In April 2023, Xinye Coal Chemical Industry (Shanshan) Co., Ltd. held its founding meeting as well as its first shareholders’ meeting, first board of directors meeting, and first meeting of the supervisory board, marking the official establishment of the company. Xinye Coal Chemical (Shanshan) Co., Ltd. has a registered capital of 100 million yuan, and is 100% controlled by Xinjiang Xinye State-owned Assets Operation (Group) Co., Ltd. We will focus on transforming Xinjiang’s abundant strategic coal resources into advantages for high-quality economic development, make every effort to build a coal chemical industry framework, take the lead in promoting the development of coal chemistry in the autonomous region, actively engage with relevant departments, coordinate the resolution of various issues, and accelerate the implementation of related projects. At present, Xinye Coal Chemical (Shanshan) Co., Ltd. has begun the preliminary work by engaging specialized agencies to plan and design projects for the clean and efficient utilization of coal resources in the Kumtag mining area of Shanshan County. The goal is to develop a distinctive model for the efficient, high-quality, and clean use of coal resources, to create a portfolio of products with core competitive advantages as well as a sustainable industrial framework for the company, thereby turning this site into the second modern coal chemical industry base for the Xinye Group. At the recently held New Industry Group-wide strategic planning seminar, leaders of New Industry Group and its subsidiaries stated that currently, in Xinjiang, which serves as a \"three bases and one corridor,\" the development of the \"eight major industrial clusters\" is progressing in an orderly manner. The coal chemical industry, with coal-to-natural gas as its key focus, is at the right time and in the right context to develop, and New Industry has great potential in advancing this industry ； Building coal-to-natural gas projects allows for the use of existing West-East Gas Transmission pipelines to transport gas from Xinjiang to the eastern coastal areas. This not only improves the actual utilization rate of those pipelines but also enables the large-scale exploitation and on-site conversion of coal resources, holding significant exploratory value and practical importance. In March 2024, Wojiang Clean Energy (Xinjiang Zhundong Economic and Technological Development Zone) Co., Ltd., a wholly-owned subsidiary of Xinjiang Xinye State-owned Assets Operation (Group) Co., Ltd., organized an expert review meeting for the feasibility study report of the 2 billion cubic meters per year coal-to-natural gas project. Five renowned experts in the coal chemical industry, members of the leadership team of Wojiang Clean Energy (Jundong Economic and Technological Development Zone, Xinjiang) Co., Ltd., the technical teams from the feasibility study preparation agencies, and related personnel attended the meeting. The meeting began with a presentation by the feasibility study preparation team on the main contents of the feasibility study report for the 2 billion cubic meters per year coal-to-natural gas project undertaken by Wojiang Clean Energy (Jundong Economic and Technological Development Zone) Co., Ltd. The evaluation panel conducted in-depth discussions on the feasibility report from various aspects, including the current state of the industry, process equipment, safety and environmental protection, energy conservation and carbon reduction, investment estimates, risk analysis, and resource availability, and offered many constructive suggestions. The expert group believes that the feasibility study report generally meets the requirements in terms of scope and depth outlined in the \"Reference Outline for Preparing Feasibility Studies for Enterprise Investment Projects\" (2023 edition), with comprehensive coverage of project management and smart factory aspects. The technologies selected for this project are mature and reliable; their implementation will help achieve the goals of energy conservation and emission reduction. The project offers viable economic benefits as well as significant social benefits. It is unanimously agreed that the review should be approved, and it is requested that the team responsible for preparing the feasibility study revise and improve the report as soon as possible in light of the suggestions put forward by the expert group.
09. Itai Ili Energy Co., Ltd.’s 2 billion cubic meters per year coal-to-natural gas with hydrogenation project. Itai Ili Energy Co., Ltd.’s original 1 million tons per year coal-to-oil demonstration project is located in the Itai Ili Industrial Park, Chabuchar County, Ili Prefecture, Xinjiang Uygur Autonomous Region. According to Meihua Ke, Yitai Ili Energy Co., Ltd. plans to optimize its product portfolio by constructing a new coal-to-natural gas project combined with hydrogenation gasification, with an annual production capacity of 2 billion cubic meters. In October 2023, China Kunlun Engineering Co., Ltd. won the contract for providing technical services related to the environmental impact assessment report for the project aimed at optimizing and adjusting the product scheme of the 1-million-ton-per-year coal-to-oil demonstration project undertaken by Yitai Yili Energy Co., Ltd.