A Note on Henan Energy Xinjiang Company’s Push for the Development of “One Park, Two Bases”

Thread Content

A Note on Henan Energy Xinjiang Company’s Efforts to Develop a \"One Park, Two Bases\" Structure Author/Source: Henan Energy Xinjiang Company Date: 2021-11-03 Views: 17 Henan Energy Xinjiang Company fully implements the principle that \"development is the top priority and innovation is the driving force.\" It relies on innovation to drive the transformation and upgrading of its industries, continues to focus on the coal and chemical sectors, seizes favorable market opportunities, and constantly expands its high-quality production capacity, thereby making positive contributions to the reform, revitalization, and high-quality development of the group company. From “Moving West” to “Prospering in the West” — A Note on Xinjiang Company’s Push for the Development of “One Park, Two Bases”. On October 21st, with the group company signing a framework agreement on investment for a range of chemical industry projects with Baicheng County, the group company’s efforts to strengthen and expand its industrial operations in Xinjiang have accelerated further. Since the beginning of this year, the group company has thoroughly implemented the strategy of \"reduction, expansion, stabilization, and withdrawal\" in the coal industry, adhering to the strategic development approach of \"bringing in resources from the east and expanding operations in the west.\" It has focused on expanding its production capacity outside the province. In the chemical industry, efforts are being made to relocate chemical plants within the province to areas outside the province such as Xinjiang. With the steady implementation of the \"westward expansion\" strategy, Xinjiang Company, in line with the strategic plan of \"one park and two bases\", has continuously improved the quality of its industrial development. While generating profits for the group company, it has also laid a solid foundation for establishing a site for the group company’s strategic relocation. Kubai Base: The industrial chain is continuously improving. Baima County and Kuqa County in southern Xinjiang are rich in mineral resources such as coal, natural gas, and oil. Focusing on the development of a comprehensive utilization base for coal, oil, and gas energy, the group company has continuously improved its presence in this region, resulting in an expanding scale of its operations. Currently, Xinjiang Company operates key mines in the Kubai region, including Kuiji Mining, Yushuling Coal Mine, and Yushuquan Coal Mine. It also has Zhongtai Coal Coking, which has a coking capacity of 1.9 million tons per year as well as a methanol production capacity of 200,000 tons per year. To further extend the industrial chain, in June and September of this year, the group company formed research teams that visited Bai County and Wensu County in the Aksu Region on two occasions to conduct research for the establishment of chemical projects and the development of high-value-added products. The projects that the group company has signed agreements to develop in Baicheng County include three projects: a coal coking plant with an annual capacity of 1.5 million tons, an ethylene glycol plant with an annual capacity of 200,000 tons, and a 1,4-butanediol plant with an annual capacity of 200,000 tons. Together with other existing projects in the area, Xinjiang’s presence in the Kubai region will move forward rapidly toward the goal of creating a chemical industrial park. While facilitating the transformation and upgrading of the enterprise, this will also enable the development of a complete industrial chain involving coal, chemicals, and new materials, thereby achieving low-carbon and sustainable development. Hami Industrial Park: Planning progresses steadily. As the \"gateway\" to Xinjiang, Hami boasts significant geographical advantages, abundant coal resources, and strong potential in new energy sources such as wind and solar power. It is a key area designated for development by the group company during the 14th Five-Year Plan period. From June 22 to 24 this year, Liang Tieshan, the chairman of the group company, led a team to Hami City and the 13th Division of the Xinjiang Production and Construction Corps to conduct investigations, with the aim of accelerating industrial relocation and achieving mutual benefit for both the enterprises and the local communities. Subsequently, in July, the group company sent another research team to Hami for investigations. At present, both the group company and Hami City have established leadership teams dedicated to coordinating the implementation of the group company’s coal chemical projects and related industries in Hami, thereby facilitating the execution of the group company’s strategy for industrial relocation. The Xinjiang company is actively studying the policies related to industrial support for Xinjiang, collecting information on the infrastructure and environmental standards in Hami, keeping track of the coal resources and development status in Hami City and the 13th Division, and monitoring the developments regarding the auction of coal resources in Hami. It is making great efforts to create conditions for the relocation of production facilities for ethylene glycol, methanol, and other products within the province by utilizing the coal resources in Chahaiquan. At the same time, in the field of new energy, it is necessary to have a thorough understanding of the distribution of wind and solar resources, geographical conditions, grid construction, transmission capacity, electricity price policies, as well as the capacity to absorb new energy loads, so as to provide a solid basis for project evaluation. Jundong Base: Production capacity set to double. The Jundong coal field is an important part of the **fourteenth large-scale coal base that has been identified. Zhongrun Coal Industry in this area is one of the few large-scale open-pit mines owned by the group company; its current production capacity is 4 million tons per year, and it ranks first within the group company in terms of cost per ton of coal as well as efficiency per ton produced. In light of the current high pressures on coal supply and demand, the executive meeting of the State Council on October 8 called for improved arrangements for the supply of electricity and coal this winter and next spring. The major coal-producing provinces and key coal enterprises are required to meet the targets set for increasing production and supply, in order to ensure the basic living needs of the population and the stable operation of the economy. The Xinjiang company makes full use of the policy on increasing coal mining capacity to seek opportunities for such an increase. The project to increase Zhongrun Coal Industry’s production capacity from 4 million tons per year to 8 million tons per year has been submitted to the **National Development and Reform Commission, and approval is currently pending. Upon obtaining approval, the Xinjiang company will add 4 million tons of coal production capacity each year, which is equivalent to creating another Zhongrun Coal Industry with minimal investment; this will have a profoundly positive impact on the company’s future development. Meanwhile, this year the Xinjiang company has also actively planned resource integration projects; it conducted research through various channels and gathered information on 46 mines, with a focus on 11 of them. These mines are mainly located in areas such as Zhundong, Tuha, Korla, and Kubai, thereby creating the conditions necessary for carrying out resource integration and management tasks in the future. After more than a decade of relentless efforts, moving from \"expanding westward\" to \"prospering in the west\", the group company is following the ancient Silk Road to fulfill its commitment to high-quality development.