The revitalization plan for the Datang Fuxin coal-to-natural gas project has been basically finalized

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The plan to revitalize the Datang Fuxin coal-to-natural gas project has been basically finalized. Author/Source: Huahua Net Coal Chemicals. Date: April 23, 2022. Clicks: 103. Recently, the Development and Reform Commission of Fuxin City in Liaoning Province announced that the plan to revitalize the Datang Fuxin coal-to-natural gas project has been essentially finalized. The plan calls for the upgrading of 2 projects related to coal-to-gas production by Datang. In addition to the funds required for acquisition, another approximately 18 billion yuan will be invested. In February 2008, the **National Development and Reform Commission approved the initiation of the preliminary work for the Datang Fuxin coal-to-natural gas project ； In March 2010, the **Development and Reform Commission approved the project, via the document titled \"Approval by the **Development and Reform Commission for the Datang International Coal-to-Natural Gas Project in Fuxin, Liaoning\" (Development and Reform Energy [2010] No. 378) ； In July 2011, the project officially commenced construction ； In the second half of 2013, the project was put on hold due to factors such as coal supply, railways, the market, and technology; construction was officially halted in 2014 ； In 2016, long-distance natural gas pipeline projects were the first to resume operations ； In January 2018, the plan for continuing the construction of the project was officially approved by the board of directors and shareholders of Sino-Singapore Energy Chemicals. By April 2018, work on the project had resumed in full ； In the second half of 2019, the dedicated railway line was put into operation, and the main units for gasification, purification, and sulfur recovery were successively commissioned. To date, 21.986 billion yuan has been invested in the project; one production line has been built, enabling an annual production capacity of 1.33 billion standard cubic meters of coal-based natural gas. Ideas for revitalizing the project: On one hand, Datang Group is working to bring the entire Papua New Guinea railway line into operation by introducing strategic partners, thereby transporting coal from Mine No. 2 in Jilin Guole to Fuxin, and thus addressing the issues related to the source of coal for the project as well as transportation costs. On the other hand, Datang Group will assume the debts of Datang Fuxin Company, allowing the latter to operate with a lighter burden. This will enable Datang Fuxin Company to attract strategic partners, make use of its existing equipment and facilities, expand its industrial chain, upgrade its projects, and advance the development of its products toward higher quality and greater sophistication. Progress on project cooperation: On March 8, a delegation of three members from Liaoning Jinhao Company and SCD Engineering Co., Ltd. of China National Chemical Corporation visited Fuxin to discuss the acquisition of Datang Fuxin Company. According to Guo Jianbo, the financing director of SCD Engineering Co., Ltd., the strategic partners for cooperation with Datang Group are a group of \"concerted actors\" composed of China National Chemical Engineering Group Corporation, Everbright Financial Holdings Asset Management Co., Ltd., and Liaoning Jinhao Technology (Group) Co., Ltd. These \"concerted actors\" will carry out structural reforms with Datang Fuxin Company in order to establish a new company that will be responsible for implementing the series of projects related to the upgrading of Datang’s coal-to-gas production facilities. In addition to taking part in the acquisition of Datang Fuxin Company, the \"concerted actors\" also hold shares in the \"transport and mining integrated\" company. Recently, they will also invest through Liaoneng Group Investment Company to acquire a 20% stake in Liaoneng Pipeline Company, thereby participating in the \"Gasification of Liaoning\" strategy and achieving development across all areas such as coal sources, railways, production, and pipeline networks ； Meanwhile, Sinochem plans to build two gas storage tanks in Yingkou, with a designed LNG storage capacity of around 2 million tons, which will be able to store the LNG produced by the upgrading projects in our city. “The concerted actors arrived at Datang Fuxin Company on February 25 to carry out due diligence work, and completed the on-site investigation on March 15. They are currently organizing the materials collected as part of the due diligence, and have also prepared a list of the procedures still needed to complete the acquisition of Datang Fuxin Company ； On March 29, Executive Vice Mayor Ai Min convened a special meeting with relevant departments including the Municipal Natural Resources Bureau, the Municipal Housing and Urban-Rural Development Bureau, and Xinqiu District to address the issue of missing project procedures. The series of upgrade projects planned to be carried out: After the \"concerted actors\" complete the acquisition of Datang Fuxin Company, they plan to implement two projects aimed at upgrading Datang’s coal-to-gas production facilities. In addition to the funds used for the acquisition, another approximately 18 billion yuan will be invested in these projects. Project 1 is a construction project aimed at producing 430,000 tons of LNG and 1 million tons of BDO per year. The total investment is estimated to be around 12 billion yuan. It involves upgrading the existing facilities; using the purified gas from the original Datang project as raw material, adding cryogenic units to liquefy methane and produce LNG. Methanol will be produced from by-products such as carbon monoxide and hydrogen, and then acetylene will be added to manufacture BDO (1,4-butanediol) along with related by-products. Project 2 is a construction project aimed at producing 500,000 tons of PBAT, 450,000 tons of PTMEG, and 200,000 tons of spandex per year. The total investment required for this project is approximately 6 billion yuan. Using BDO produced in Project 1 as raw material, this project will manufacture biodegradable plastics such as PBAT (polybutylene terephthalate) and PTMEG (polytetramethylene ether glycol), as well as high-value-added new materials.