Overview of the 150,000-ton/year LNG project from coke oven gas in Zequan, Guxian County, Shanxi

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I. Basic Overview of the Project
1. Principal Party and Location
Construction entity: Guxian Zequan New Energy Co., Ltd. (a wholly-owned subsidiary of Shanxi Hongyuan New Energy). Construction location: Within the Jianhe Industrial Park in Baisu Village, Guyang Town, Guxian Economic and Technological Development Zone, Linfen City, Shanxi Province. The facility utilizes coke oven gas generated as a by-product from its parent company’s 2.16 million tons/year coking plant as raw material. Project attributes: A key provincial-level new coal chemical resource utilization project in Shanxi Province for 2026. 2. Scale, investment, and construction details
Production capacity: The designed annual LNG production capacity is 150,000 tons/year; the processing capacity for coke oven gas is 66,000 Nm³/h (dry basis) ； In the long term, it is planned to produce 80,000 tons per year of synthetic ammonia through combined production, and to make further use of the off-gases generated from LNG for resource utilization. Investment and factors: Total investment amounts to 939.28 million yuan ； Covering an area of 214.59 mu, with a total construction period of 18 months, it has a capacity of 180 employees and operates on a three-shift basis for 330 days per year. Core construction units: coke oven gas pretreatment, gas holder, compressor unit, methanation and purification, cryogenic liquefaction facility, LNG storage tanks, and loading/unloading systems ； Complete set of auxiliary facilities including elevated torches, power transformation and distribution systems, circulating water systems, fire protection systems, air compression nitrogen generation systems, temporary storage for hazardous waste, central control and testing facilities, and a comprehensive building. 3. Status of preliminary procedures: Project registration to be completed in August 2025 ； The first and second public announcements for environmental impact assessment, the water resource impact assessment for the Huoquan River basin, and the approval for water extraction permits were all completed successively ； In December 2025, the design phase for the construction drawings will begin, with all necessary compliance procedures essentially completed. II. Status of tender activities
1. Overall tendering phase
No large-scale general contracting tender has been publicly issued for the overall civil works and core process equipment of the project ； At the current stage, the focus is on bidding for preliminary design subcontracting, temporary facilities, miscellaneous materials, and supporting auxiliary materials. 2. Categories for which bidding has been carried out (as of June 2026): Temporary construction cables and temporary materials used at the construction site are procured through open bidding; the delivery location is the Guxian project site, with the procurement bidding organized by the installation units in Hebei ； The tender announcement for the supporting project to produce 80,000 tons of synthetic ammonia via LNG co-production was issued on June 10, 2026; the deadline for submissions was June 18. This is a special tender for the supporting sub-projects. 3. For the sections to be tendered, public tender notices have not yet been issued for core liquefaction equipment, pressure vessels, large-scale compressors, general civil engineering contracts, installation works, tank fabrication, and environmental protection systems; it is expected that EPC general contracting tenders will be launched once the construction drawings are finalized. 4. Features of bidding: For large-scale equipment and process units, EPC contractors specializing in the chemical and petrochemical industries are preferred ； Civil works and installation are tendered in separate packages ； Regular small-scale public bidding for miscellaneous building materials and temporary electrical supplies. III. Current progress of construction 1. Procedure completion + design phase for construction drawings: The actual drawing of construction drawings began in December 2025; by June 2026, the main process drawings were largely finalized, while site grading and preparation of temporary facilities were carried out simultaneously, with no large-scale civil construction work yet begun. 2. On-site preparatory work: land grading in the park, installation of temporary water and electricity supply, and construction of temporary fencing have already begun ； Government departments have conducted multiple on-site inspections regarding safety and environmental protection requirements for construction, thereby establishing strict construction standards for dust control, protection of water sources in the Huoquan Spring area, and hazardous waste disposal. 3. Construction plan: Once all the construction drawings are finalized, work will commence immediately on the civil engineering pile foundations, the pouring of the factory building, and the construction of the equipment foundations ； Subsequently, device installation, pipeline laying, equipment commissioning, and joint testing were carried out in sequence, with the overall 18-month project timeline arranged systematically. 4. Control requirements: Throughout the construction process, it is necessary to strictly comply with the regulations for the protection of the Huoquanquan area; groundwater disturbance must be strictly controlled during foundation pit construction, production wastewater and solid waste must be disposed of in a closed-loop system, and special safety management measures must be implemented for the pipelines used to transport coking gas. IV. Significance of the Project Construction
1. Enhancing circular efficiency in the coking industry
This project will fully utilize the by-product coke oven gas generated from Shanxi Hongyuan’s coking facilities, thereby eliminating any waste resulting from gas venting or inefficient combustion. It will establish a closed-loop industrial chain comprising “coal – coke – gas – LNG – ammonia”, significantly increasing the added value of coking by-products. Additionally, it will address the shortcomings in the deep processing capabilities of the coal chemical industry in Guxian County, thus facilitating the green transformation and upgrading of the region’s coking industry, which has an annual production capacity of 5 million tons. 2. The value of ensuring a supply of clean energy: An annual production of 150,000 tons of LNG can help sustain the supply of natural gas for domestic use, industrial applications, and as fuel for transportation in southern Shanxi Province. This helps to address seasonal shortages of natural gas, improves the regional energy structure, and reduces reliance on external sources of gas. 3. Significant dual-carbon and environmental benefits: The purification and liquefaction of coke oven gas result in a substantial reduction in carbon dioxide and sulfur compound emissions compared to direct combustion. The systematic treatment of waste gases and hazardous waste helps to address the challenges associated with waste gas management in the coking industry, facilitating a low-carbon transformation of this traditionally energy-intensive sector. This approach is in line with the overall direction of energy reform in Shanxi. 4. Boosting local economy and employment: Nearly 1 billion yuan in fixed-asset investment has spurred the development of upstream and downstream industries related to construction materials, installation, and logistics. The project reliably creates 180 long-term jobs, while the construction phase generates numerous temporary employment opportunities. This contributes to increasing the industrial output value and tax revenue of the Guxian Economic Development Zone, thereby promoting high-quality economic development in the counties within the Taiyue region.