New Energy Group expands its operations in coal-to-natural gas production
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New Energy Group’s Investment in Coal-to-Natural Gas Projects Author/Source: Date: 2018-01-31 Clicks: 56 http://img.yf116.cn/image/img/20180131/956193577990.jpg http://img.yf116.cn/image/img/20180131/957153583555.jpg http://img.yf116.cn/image/img/20180131/100153601516.jpg
SNOW Energy currently has an LNG production capacity of 800 million cubic meters, and with the new projects, this figure will reach 2 billion cubic meters – truly an ambitious goal. It’s just unclear what level of profit can be achieved; is it by transferring coal resources under the pretext of using coal to produce gas, and then generating profits from other products produced as a byproduct?
Whether coal-to-gas production is profitable depends on the price of coal
As long as hydrogenation gasification and catalytic gasification are successful, it is estimated that fixed-bed reactors will be rendered obsolete
Excluding investments and asset depreciation, the unit cost of coal-based LNG (at current coal prices) is around 1,000–2,000; with current natural gas prices as a reference, there is still room for profit.