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The hydraulic test of Boiler #5 in the power section of the second-phase project of Datang Keqi Coal-to-Natural Gas Company was successful on the first attempt. Author/Source: Huahua Net Coal Chemicals. Date: 2020-08-11. Clicks: 10. On July 28, the hydraulic test of Boiler #5 in the power section of the second-phase project was successful, marking the completion of the installation of this boiler as part of the power equipment for the second phase; this was a first step toward accelerating the construction of this project. In late July, Boiler #5 passed the inspection and acceptance by the Liaoning Electric Power Construction Project Quality Supervision Center Station, meeting the conditions for a hydrostatic test. Keqi Company promptly carried out the hydrostatic testing. At 11:30 on July 28th, under the joint supervision of Keqi Company, Changchun Guodian Supervision, Beijing Electric Power Construction, Harbin Boiler Factory, and Chifeng Special Equipment Inspection Institute, the hydrostatic testing was successfully completed. #The 5th boiler will enter the next construction phase, which includes insulation of the boiler body, pickling, and ignition testing. The Datang Keqi coal-to-natural gas project is the first large-scale coal-to-natural gas demonstration project approved by the **National Development and Reform Commission. The planned capacity is 4 billion cubic meters per year, to be constructed in three successive phases, with each phase having a capacity of 1.33 billion cubic meters. Construction of the series of facilities began in August 2009, was completed in July 2012, and they were successfully put into operation on December 18, 2013. In 2018, the Datang Keqi coal-to-natural gas project supplied 1.09 billion cubic meters of gas to Beijing, accounting for approximately 6% of Beijing’s total gas consumption that year. After the second phase of the Keqi project becomes operational, its total output will account for one-third of Beijing’s non-heating season demand. Reportedly, the domestic selling price of coal-to-natural gas is lower than the production cost, resulting in a price inversion. The price of natural gas for the Datang Keqi coal-to-natural gas project started at 2.75 yuan per cubic meter (including taxes; the same applies hereafter), as approved by the National Development and Reform Commission. After several adjustments to the pricing at various distribution points and a reduction in tax rates, the current price at which this natural gas is sold to PetroChina is 1.75 yuan per cubic meter, representing a decrease of approximately 36% in the selling price. Due to the homogeneous structure of natural gas as the main product, and the fact that it is primarily delivered to consumers through PetroChina’s pipeline network, there have been no adjustments to the natural gas price. The price of raw coal has risen from 136 yuan per ton at the beginning of operations to the current 183 yuan per ton. In recent years, although the project company has made continuous efforts to increase production capacity and cut costs, it still cannot change the reality of inverted pricing. To overcome the limitation of a monotonous product structure, domestic coal-to-natural gas projects have successively undertaken “self-help” measures to find a way out. Datang Group has formulated a corresponding peak-shaving plan; ultimately, it decided on a technical route that involves producing 600 million cubic meters of coal-to-natural gas per year, along with 800,000 tons of methanol and 400,000 tons of ethylene glycol. The peak-shaving projects for the Datang and Fuxin projects are expected to be completed and put into operation by the end of 2021 and June 2022, respectively.