Shell Netherlands will delay the coal-to-oil project with Shenhua Group
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Author/Source: Wall Street Journal Date: 2009-4-15 -------------------------------------------------------------------------------- Lin Haoguang, head of Royal Dutch Shell Plc’s operations in China, said on Tuesday that due to the weak economy, the company has decided to postpone a coal-to-oil project carried out in partnership with Shenhua Group Co., Ltd. Lin Haoguang said that the project is not a priority. However, he said that coal gasification has strong momentum for development in China, with 20 licensing agreements signed in recent months in this sector. Royal Dutch Shell has conducted feasibility studies with Shenhua Group regarding the establishment of a coal-to-oil plant in the Ningxia Hui Autonomous Region. Shenhua Group is China’s largest coal producer. Shenhua Group has been investing in coal-to-oil projects in Inner Mongolia, focusing on the use of technologies developed in-house. However, due to the sharp drop in crude oil prices and China’s water scarcity, many projects have been unable to progress smoothly. However, converting the country’s abundant coal resources into fuel to compensate for the declining oil reserves is still quite attractive for China’s energy security. This post was last edited by shanxg on 2009-4-15 14:12]
SHELL’s gasification and synthesis technologies possess considerable advantages; if they are to be implemented in China, there should be a certain market for them. However, due to the effects of the economic crisis as well as the partnership between Shenhua and Sasol, it is likely that it will take a long time before this project can be restarted. This post was last edited by shanxg on 2009-4-15 14:15]
There are already many Shell gasifiers in use in China, but none of them are operating smoothly; I hope people will not pursue this trend blindly
Haha, I heard that Jinchai is going to produce 500,000 tons of synthetic ammonia using SHELL!!!