Xinjiang Tianye and Tianchi Energy have jointly invested in setting up a joint venture, leveraging Tianchi Energy’s Zhundong coal mine, in order to explore new opportunities in the coal chemical industry

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On the evening of November 14, Xinjiang Tianye announced that the company, together with Xinjiang Tianchi Energy Co., Ltd. (abbreviated as Tianchi Energy), would leverage their respective strengths and take advantage of Xinjiang’s resource endowments and development foundations. By relying on Tianchi Energy’s Zhundong coal mines, the two parties plan to invest in establishing a joint venture company – with Xinjiang Tianye intending to hold 51% of the shares and Tianchi Energy 49% – in order to explore new opportunities in the coal chemical industry and advance the preliminary work for related projects. According to available data, as of now, Tianchi Energy holds the exploration rights for four coal mines: the South Open-Pit Coal Mine and the North Open-Pit Coal Mine in the Zhundong Dajing mining area in Xinjiang, as well as the No. 1 and No. 2 Open-Pit Coal Mines in the Xizhongxi Heishan mining area in Xinjiang. The total proven coal reserves amount to 12.6 billion tons, with an approved coal production capacity of 74 million tons per year. According to reports from local media in the Junggar region, the 2 billion cubic meters per year coal-to-natural gas project of Tianchi Energy began construction at the end of September. It has laid a solid foundation for the green development of the regional coal chemical industry. Data shows that China’s natural gas consumption in 2024 was 426 billion cubic meters, of which 181.7 billion cubic meters came from imported sources. In 2025, consumption is expected to be between 430 and 450 billion cubic meters, while by 2030 it is projected to range from 550 to 600 billion cubic meters. Thereafter, natural gas consumption will continue to grow steadily and sustainably, reaching a plateau around 2040. Some analysts say that in the future, as natural gas consumption continues to rise and demand stays strong, coal-to-gas projects, as domestic alternatives to imported gas, will have good market prospects. The establishment of a joint venture between Xinjiang Tianye and Tianchi Energy will serve as the entity responsible for applying for new coal chemical projects, and for carrying out the procedures required to incorporate such projects into the development plan of the Zhundong Coal Chemical Industry Base. Xinjiang Tianye stated in its announcement that the joint venture focuses on coal-based new materials, striving to find sustainable and green development paths for modern coal chemical industry. By adopting advanced clean production technologies and optimizing production processes, it aims to reduce energy consumption and pollutant emissions, thereby promoting a green transformation of the energy structure as well as a green upgrade of the industry. In terms of specific responsibilities, Xinjiang Tianye is in charge of handling the approvals, registrations, and business registration procedures required for establishing the project company. It also leverages its experience in chemical production management to supervise and guide the daily operations of the joint venture company, and works with the relevant industry authorities to secure the necessary approvals for the company’s activities. Tianchi Energy assists in providing the relevant materials in a timely manner to facilitate the establishment of the project company, and at the same time, utilizes its own coal mining resources to ensure priority supply of coal to the joint venture under equal conditions. Xinjiang Tianye stated that this external investment by the company is an important step in implementing its development strategy; it has a positive impact on the company’s future development and aligns with the needs of the company’s strategic and operational growth.