Latest updates on the Datang Fuxin coal-to-natural gas project
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Advancing the Datang Coal-to-Natural Gas Project Author/Source: Date: 2016-03-11 Clicks: 11 On March 10, Mayor Yang Zhonglin visited Datang International Corporation to discuss the Fuxin Datang coal-to-natural gas project and have in-depth discussions on related issues. At the headquarters of Datang International Company, Yang Zhonglin met with Wu Jing, the general manager of Datang International, and the two sides exchanged views on the construction of the Fuxin Datang coal-to-natural gas project. Yang Zhonglin expressed deep concern on the part of the Fuxin Municipal Party Committee and the municipal government regarding the Datang coal-to-natural gas project, learned in detail about the project’s restructuring and launch process, and stated sincerely that the Fuxin Municipal Party Committee and the municipal government would spare no effort to carry out all necessary actions. Yang Zhonglin gave a brief overview of the Fuxin-Papua New Guinea railway and the use of clean energy, expressing the hope that Datang Company would accelerate the process of project restructuring and implementation, so as to work together to promote the development of clean energy and foster the growth of the green industry. Wu Jing provided a detailed account of the restructuring and resumption of work at the Fuxin Datang coal-to-natural gas project, as well as the solutions to various technical and environmental issues that arose during the project’s implementation. She stated that efforts would be made to accelerate the construction process, with the goal of completing this **coal chemical demonstration project as soon as possible.
Is the project stalled at the moment? What’s the reason?
The main issue is the poor prospects; no matter how you calculate it, there’s no profit to be made
On March 29, 2016, China State Investment Holding Co., Ltd. and Datang International Power Generation Co., Ltd. signed a Termination Agreement to the Reorganization Framework Agreement, confirming the termination of said framework agreement. In July 2014, Datang Power Generation and Guoxin Holdings signed a Framework Agreement on the Restructuring of Coal Chemicals and Related Projects, aiming to restructure Datang Power Generation’s coal chemicals business unit and related projects. The scope of the restructuring includes: Inner Mongolia Datang Duolun Coal Chemical Co., Ltd., Inner Mongolia Datang International Kesikteng Coal-to-Natural Gas Co., Ltd., Liaoning Datang International Fuxin Coal-to-Natural Gas Co., Ltd., Datang Hulunbuir Fertilizer Co., Ltd., Inner Mongolia Datang International Xilinhot Mining Co., Ltd., as well as related supporting and affiliated projects. Under the agreement, through cooperative restructuring or equity acquisition, Guoxin Company obtains the assets or equity related to the Datang Coal Chemicals segment and its associated projects. At present, following consultations with China Datang Group Corporation, the controlling shareholder of Datang Power Generation, Datang Group will take the lead in advancing the restructuring of the coal chemical sector and related projects. The original announcement reads as follows: On July 7, 2014, Datang International Power Generation Co., Ltd. (the “Company” or “our Company”) and China State Capital Investment Holding Co., Ltd. (“CSIC”) signed a Framework Agreement on the Restructuring of Coal Chemicals and Related Projects (the “Restructuring Framework Agreement”), with the aim of restructuring the Company’s coal chemicals business segment and related projects. For details, please refer to the relevant announcement issued by the company on July 7, 2014. Following consultations, on March 29, 2016, Guoxin Company and our company signed a \"Termination Agreement to the Restructuring Framework Agreement\", confirming the termination of the said restructuring framework agreement. Currently, following discussions with the company’s controlling shareholder, China Datang Group Corporation (“Datang Group”), Datang Group will take the lead in advancing the restructuring of the coal chemical sector and related projects. The company will closely monitor the progress of the restructuring in the coal chemical sector, and fulfill its information disclosure obligations in a timely manner in accordance with relevant laws and regulations. Board of Directors of Datang International Power Generation Co., Ltd. March 29, 2016