Datang Power Generation: Adjusts the restructuring plan for its coal chemical business

Companies in China that invest in coal-to-natural gas projects can consider Datang’s coal-to-gas project. Hehe

Too much was invested in the early stage; now they want to sell it but don’t want to suffer heavy losses. Will it be possible to sell it?

Isn’t it fine for Datang to keep operating as it is? It can manage things on its own – why does it have to be sold? Does anyone in the industry know about Datang’s current situation regarding coal-to-gas production?

Fuxin has not resumed operations yet due to a lack of funds. In Keqi, the water treatment capabilities are insufficient, which prevents an increase in operational capacity; the second phase is also far from realization, again because of a lack of funds

I heard that the coal is going to be changed, from lignite to bituminous coal. It should be much better.

Latest Updates on the Datang Coal Chemical Project Author/Source: Date: 2016-04-01 Clicks: 14 On March 30, Datang International Power Generation Co., Ltd. released its annual report for 2015. According to the annual report, in the Datang Coal Chemicals segment, the equipment performance of the 460,000 tons per year coal-based olefins project in Dolun has continued to improve; the gasifier operates at an oxygen load of over 80% on a regular basis, with its continuous operation time constantly setting new records. In 2015, a total of 137,000 tons of polypropylene were produced. Units A and B of Project A, with a capacity of 1.33 billion cubic meters per year, in the first phase of the Keqi 4 billion cubic meters per year coal-to-gas project, have been operating at full capacity continuously, achieving virtually zero wastewater discharge. In 2015, a total of 552 million cubic meters of natural gas was produced. Fuxin 4 billion cubic meters/year coal-to-gas project: Infrastructure construction activities are proceeding as planned. The production and operation of Hulunbuir Fertilizer Company remain stable, having largely reached its designed capacity and exceeding its annual targets. In 2015, a total of 285,600 tons of urea were produced.

Sinosteel Holdings withdraws from the restructuring of Datang Coal Chemical Sector. Author/Source: Date: 2016-04-01. Clicks: 12. On March 29, 2016, Sinosteel Holdings Co., Ltd. and Datang International Power Generation Co., Ltd. signed an “Agreement to Terminate the Restructuring 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 Keshiketeng 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 discussions 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. According to the Central Commission for Discipline Inspection and the Supervisory Department, in order to improve the management of coal chemical projects, Datang Group established a leadership team for these projects as well as a leadership team for restructuring efforts, in order to address the major issues that affect the production and operation of coal chemical industries. At the same time, a coal chemical engineering expert committee was established to vigorously pursue technological breakthroughs. Coal-to-natural gas production in Keshiketeng Banner, Inner Mongolia, has achieved stable operation over long periods despite the use of multiple coal types, with a total of 700 million cubic meters of gas supplied to Beijing. Coal chemical projects, the asset-liability ratio, and small hydropower projects in the southwest are prominent issues that severely restrict the profitability and sustainable development of Datang Group. “In previous years, the group did engage in the reckless expansion of projects, with coal chemical industry being a prime example of this. ”Liang Yongpan, director of the Group’s Marketing Department, said that coal chemical industry is not in line with the role of Datang Group as a super-large power generation enterprise group; it does not fall within Datang’s core business, and blind investment in this project has resulted in huge losses. 　　 The original announcement reads as follows: Announcement by Datang International Power Generation Co., Ltd. on Adjusting the Restructuring Plan for its Coal Chemicals Business. On July 7, 2014, Datang International Power Generation Co., Ltd. (the “Company” or “our Company”) signed a Framework Agreement for the Restructuring of Coal Chemicals and Related Projects (the “Restructuring Framework Agreement”) with China State Capital Investment Corporation Limited (“SICIC”) in order to restructure 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\" to confirm the termination of the said restructuring framework agreement. At present, following consultations 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

;Country P’s new capital can no longer bear it – where are the buyers to take over?

Well, yes, it will need to be switched to coal from the Ordos region. The composition of the coal varies greatly, so it’s not yet clear what will happen

This is the inevitable result of outdated technology and outdated concepts. The scary thing is that one place is about to close, while another one has to open. Coal-to-natural gas is itself a technology born out of outdated concepts; this process not only reduces the efficiency of coal resource utilization but also increases local environmental pollution. Taking Beijing’s 4 billion tons of coal-to-natural gas production as an example, the efficiency was 74% during the feasibility study phase, but it is now only 56%, and environmental standards are not even met, let alone there being any issues related to VOCs. This process also consumes 24 million tons of water, which is equivalent to the annual water usage of 660,000 local residents. I don’t know how many more times such things will happen? ! Where is the scientific brain? !