Pre-examination approval granted for the land use plan for the construction of Anhui Energy Group’s Huainan plant capable of producing 2.2 billion Nm3 of coal-to-natural gas per year

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Approval granted for the pre-review of the land use plan for Anhui Energy Group’s project to produce 2.2 billion Nm3 of coal-based natural gas per year in Huainan. Author/Source: Coal-Based New Materials. Date: 2021-02-08. Clicks: 71. Recently, the Anhui Provincial Department of Natural Resources approved the pre-review results regarding the land use required for this project carried out by Anhui Energy Group. The site for this project is located in Panji District, Huainan City, with a total area of 198.6643 hectares. Of this, 155.0712 hectares are agricultural land (of which 142.1838 hectares are arable land), 0.2665 hectares are construction land, and 0.1026 hectares are unused land. The site selection for the project has been thoroughly evaluated to ensure proper avoidance of permanent basic farmland, ecological protection zones, and the 1-kilometer shoreline along the Huai River. The project is located in Huainan City, Anhui Province, with a total investment of around 30 billion yuan. It is funded and constructed by Waneng Group, Shanghai Huayi, and SDIC Xinji, aiming to build a natural gas production facility with an annual capacity of 4 billion cubic meters. The construction will take place in two phases: the first phase involves an investment of 15 billion yuan to build a facility with an annual output of 2.2 billion cubic meters of natural gas. Anhui Energy Group Co., Ltd. (Waneng Group) is a wholly state-owned company established with funding from the Anhui Provincial Government. It serves as the investment and management entity authorized by the provincial government, as well as the entity responsible for investing in state-owned assets. The company is in charge of raising funds for provincial-level electricity, natural gas, and other energy-related projects, managing investments in such projects, and carrying out asset management and capital operation activities. At present, WanNeng Group Company has established a development framework in which the three industries of electricity, natural gas, and finance develop in an interactive and coordinated manner, with sectors such as coal logistics, new energy, and electricity production services providing strong support. The project progress is as follows: On June 18, 2020, the Huainan Natural Resources and Planning Bureau issued a report containing its preliminary opinions on the pre-examination of the land required for the construction of the coal-to-natural gas plant in Huainan, which has an annual production capacity of 2.2 billion Nm3. In April 2016, the \"Soil and Water Conservation Plan Report for Huainan’s 2.2 billion Nm3 per year coal-to-natural gas project of Anhui Energy Group Co., Ltd.\" was approved. On July 17, 2015, Anhui Energy Group Co., Ltd. and Shanghai Huayi Group Co., Ltd. signed a strategic cooperation agreement to jointly advance the coal-to-gas demonstration project in Huainan, Anhui. On October 28, Anhui Energy Group Co., Ltd. and SDIC Xinji plan to jointly invest in the development, construction, and operation of a coal-to-natural gas project in the Anhui (Huainan) Modern Coal Chemical Industry Park in Huainan City; the name of the company will be Anhui Waneng Coal-to-Natural Gas Co., Ltd. (provisional name). The two parties intend to sign an Investment Agreement for Anhui Wanneng Coal-to-Natural Gas Co., Ltd., under which SDIC Xinji will hold a 20% investment stake, while Anhui Energy Group Co., Ltd. will hold an 80% investment stake. In April 2014, the Huainan Coal-to-Gas Demonstration Project in Anhui received a reply from the General Office of the National Development and Reform Commission titled “Reply from the General Office of the National Development and Reform Commission regarding the preliminary work for the Huainan Coal-to-Gas Demonstration Project in Anhui” (Document No. FGBNY [2014] No. 818). This document approved the commencement of the preliminary work for the project. Reply from the Department of Natural Resources of Anhui Province regarding the pre-review of land use and planning for the coal-to-natural gas project in Huainan with an annual production capacity of 2.2 billion Nm3. Natural Resources Commission Anhui Pre-Review [2021] No. 3: To the Preparation Office for the Coal-to-Natural Gas Project of Anhui Energy Group Co., Ltd.: Entrusted by the Ministry of Natural Resources to carry out the pre-review of land use, we have received your company’s request titled “Application for Pre-review of Land Use and Planning for the Coal-to-Natural Gas Project in Huainan with an Annual Production Capacity of 2.2 Billion Nm3” (Coal-to-Gas Preparation [2020] No. 10) along with related documents. In accordance with the \"Administrative Measures for Pre-examination of Land Use for Construction Projects\" (Order No. 68 of the Ministry of Land and Resources, hereinafter referred to as the \"Pre-examination Measures\") and the \"Notice of the Ministry of Natural Resources on Promoting the Reform of Integrated Planning and Land Use Approval as well as Integrated Permitting Based on the Concept of ‘Integration of Multiple Plans’\" (Natural Resources Regulation [2019] No. 2, hereinafter referred to as the \"Notice\"), and after examination, the reply is as follows. I. The project to produce 2.2 billion Nm³ of coal-derived natural gas per year in Huainan (Project Code: 2016-000052-45-02-000112) has received the “Reply Letter from the General Office of the National Development and Reform Commission regarding the preliminary work on the coal-to-gas demonstration project in Huainan, Anhui” (Document No. FGWB-NY [2014] No. 818). Project construction can provide green and clean energy for Anhui and surrounding provinces, contributing to environmental protection and holding great significance for promoting local economic and social development. This project complies with the land supply policy, and approval for the preliminary land use review is granted in principle. II. The total area designated for this project is 198.6643 hectares, of which: 155.0712 hectares are agricultural land (142.1838 hectares of arable land, with no use of permanent basic farmland), 43.4905 hectares are construction land, and 0.1026 hectares are unused land. The project site is not located within the ecological protection red line areas approved and announced by the State Council. During the preliminary design stage, it is necessary to strictly control the land use scale in accordance with the \"Control Indicators for Land Use in Industrial Project Construction\" (Guo Tu Zi Fa [2008] No. 24) and the \"Indicators for Land Use in the Construction of New Railway Projects\" (Jian Biao [2008] No. 232), so as to make efficient and economical use of land. III. In accordance with provisions such as the Land Administration Law of the People’s Republic of China, where a construction project occupies arable land, an equal amount of arable land of comparable quality must be substituted. The municipal and county authorities in charge of natural resources should urge the construction units and local authorities to ensure that the relevant costs for replenishing arable land and carrying out land reclamation are fully covered, and to carry out the necessary work to balance the use of arable land and to prepare for land reclamation before applying for land use approval ； In conjunction with land consolidation, the development of high-standard farmland, and land reclamation, efforts should be made to promptly organize the removal and utilization of soil from the topsoil layer as well as the creation of additional arable land ； When applying for land use approval, the arrangements for the removal and utilization of the topsoil shall be explained together with the supplementary farmland plan. IV. The Huainan Natural Resources and Planning Bureau shall urge the construction units and county-level authorities to, in accordance with relevant laws, regulations and official documents, carry out work related to land acquisition compensation and resettlement prior to the approval of land use; ensure that sufficient funds for such compensation and resettlement are allocated and included in the project budget; determine appropriately the methods for resettling the farmers whose land is acquired; guarantee that these farmers maintain their existing standard of living and have secure long-term livelihoods; and effectively protect the legitimate rights and interests of those farmers. V. After the project is approved in accordance with relevant regulations, the procedures for approving the use of land for construction must be carried out in line with the Land Administration Law of the People’s Republic of China and the relevant provisions of documents issued by the State Council. Before the application for land use is submitted, the project must complete tasks such as hearings on planning revisions, impact assessments on the implementation of the plan, and expert evaluations. Construction shall not commence without the approval for land use. For projects that have already passed the land use pre-review, any major changes to the land use or the location of the construction project require a new land use pre-review to be carried out. VI. The project owner shall conduct inquiries and verifications to determine whether the project is located in natural and historical-cultural conservation areas or areas prone to geological disasters, and whether it overlaps with important mineral resources ； Areas under natural and historical-cultural protection should be avoided. In cases where sites are located in areas prone to geological disasters or where important mineral resources are covered by such sites, it is necessary, in accordance with relevant laws and regulations, to conduct assessments of the risk of geological disasters and carry out registrations related to the mineral resources covered, after going through the procedures for preliminary land use approval. VII. Project construction must strictly follow the planning approval procedures, obtain the necessary planning permits in accordance with the law, be carried out in line with the planning requirements, and comply with planning regulations. During the detailed design and construction phases, the project must comply with the urban and rural planning requirements of the location, ensure proper coordination with surrounding municipal infrastructure, public service facilities, and public safety facilities, as well as address the issues related to the protection and utilization of relevant resources along the project site. VIII. In accordance with the provisions of the Pre-examination Measures and the Notice, the validity period of the pre-examination and site selection opinion for construction project land is 3 years; the validity period of this document expires on January 11, 2024. January 11, 2021