Yunnan plans to build a coal-to-natural gas project with a capacity of 2.5 billion cubic meters

Thread Content

　As learned on August 27 from the feasibility study meeting on coal-to-natural gas production with a capacity of 2.5 billion cubic meters per year in Mile, Yunnan Guoneng Coal and Electricity Co., Ltd. plans to invest 14 billion yuan over 5 years to complete the construction of this coal-to-natural gas facility. Meanwhile, the coal mines will be upgraded and expanded to become large-scale open-pit mines with a production capacity of 20–25 million tons per year. Relying on Mi Le County’s abundant lignite resources, a comprehensive coal utilization production base that integrates coal and gas production, features clean and environmentally friendly operations, a circular economy model, and significant economic benefits. 　　For a long time, due to the high costs associated with its processing and its low economic value, many companies treated lignite as waste, thereby wasting resources. Chen Chang, chairman of Yunnan Guoneng Coal and Electricity Co., Ltd., explained that the company utilizes the concept of turning lignite into a valuable resource by investing heavily in its comprehensive development in order to enhance its true value. 　　The known lignite reserves in the Kuazhu Mining Area of Mile County amount to approximately 980 million tons. The consolidation of the small coal mines within the mining area of Guoneng Coal and Electricity Company has been completed, with a production capacity of 900,000 tons per year. In December 2010, the Energy Bureau of the National Development and Reform Commission officially approved an expansion of the mining area’s production capacity from 900,000 tons per year to 5 million tons per year. “The lignite in the Kuaizhu mining area has a high content of volatile components, making it suitable as a raw material for coal-to-gas production. The company plans to invest 14 billion yuan over 5 years to build a coal-to-natural gas plant with an annual production capacity of 2.5 billion cubic meters. Meanwhile, the coal mine will be expanded and upgraded to become a large-scale open-pit mine with an annual production capacity of 20–25 million tons. ”That’s what Jin Tao, the deputy general manager of Yunnan Guoneng Coal and Electricity Co., Ltd., said. 　　A company official said that by utilizing world-class technical equipment, the coal-to-natural gas project once completed will be able to produce 2.5 billion cubic meters of natural gas per year, as well as around 350,000 tons per year of various petrochemical products such as coal tar, sulfur, middle oil, crude phenol, naphtha, and ammonium sulfate. It can supply clean energy natural gas products to the local and surrounding markets. 　　According to officials from the Red River Province Development and Reform Commission, the natural gas produced by this project will help alleviate the shortage of gas in our province, reduce dependence on foreign gas supplies, and ensure the security of energy supply. It holds great significance for improving the economy in border areas inhabited by ethnic minorities and raising the standard of living of the local population.