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Approval Evaluation for Su Xin’s 4 billion cubic meters per year coal-to-natural gas project Author/Source: Date: 2016-06-29 Clicks: 13 Commissioned by the National Development and Reform Commission, on June 25, 2016, the Petroleum and Chemical Industry Planning Institute held an evaluation meeting in Beijing for Su Xin New Energy and Feng Co., Ltd.’s project to produce 4 billion standard cubic meters per year of coal-to-natural gas. **More than forty people attended the meeting, including officials from the Science and Technology Equipment Department of the Energy Bureau, experts from the Petroleum and Chemical Industry Planning Institute, industry-related experts, local ** representatives, representatives of the project construction units, and representatives of the project design units. The meeting heard presentations from the construction unit of the Su New Energy project on the project background, overview, progress, and other related aspects, as well as a report from the design unit regarding the \"Project Application Report.\" The \"Project Application Report\" and related information were thoroughly discussed and carefully reviewed. The meeting noted that the construction of coal-to-natural gas projects for new energy purposes in areas rich in coal resources is of great significance for addressing China’s natural gas shortage, achieving clean and efficient conversion of coal resources in Xinjiang, boosting local economic development, supporting air pollution control in the eastern regions, advancing the localization of technologies and equipment for deep coal processing, and serving as a model for industrial upgrading. The meeting concluded that the Su New Energy project is in line with **industry policies and local plans; the project’s resources and market conditions are mature. All preliminary tasks such as planning, land use assessment, environmental impact evaluation, and energy assessment have been completed, and approvals have been obtained from the relevant authorities, thus meeting the conditions for approval. The evaluation experts focused their assessment on aspects such as the implementation of demonstration tasks, industry entry standards, the rationality of energy and resource utilization, environmental impacts, impacts on public interests, and social benefits. The meeting required that the project owner and the design firm revise and improve the \"Project Application Report\" as soon as possible, in accordance with the experts’ suggestions. The Petroleum and Chemical Industry Planning Institute will then prepare a formal evaluation report based on the revised application report, which will be submitted to the **Development and Reform Commission** and the **Energy Bureau** to facilitate the prompt approval of the project. On April 29, 2016, the **Ministry of Environmental Protection issued a notice formally approving the Environmental Impact Assessment Report for Su New Energy and Feng Co., Ltd.’s project to produce 4 billion standard cubic meters per year of coal-based natural gas. The Su Xin coal-to-gas project has become the third coal-to-natural gas project to receive environmental impact assessment approval this year. Su New Energy and Feng Co., Ltd. is a coal-based clean energy development entity approved by the relevant authorities of Jiangsu Province, established under the leadership of the Jiangsu State-owned Assets Supervision and Administration Commission. It was founded with funding from five major provincial-owned enterprises: Xumine Group, Guoxin Group, Transportation Holding Group, Suhao Group, and Huihong Group. Operating under the direct supervision of the provincial authorities, it serves as the implementing entity for the \"Agreement on Deepening Strategic Cooperation in Clean Energy between Jiangsu and Xinjiang.\" It is tasked with carrying out initiatives aimed at providing industrial support to Xinjiang as well as facilitating the supply of gas from Xinjiang to Jiangsu. The company takes over all responsibilities related to Xumine Group’s 4 billion cubic meter per year coal-to-natural gas project in Tacheng, as well as subsequent projects, in order to develop a coal-based clean energy base in Tacheng, Jiangsu Province. In accordance with the strategic cooperation agreement on clean energy between Jiangsu and Xinjiang, it is planned that by 2020, Jiangsu will invest 180 billion yuan in Xinjiang to build facilities capable of producing 26 billion cubic meters of coal-based natural gas per year, as well as to develop a coal processing capacity of 130 million tons; other coal-based energy projects will also be implemented as part of this plan. The first phase of the project, which involves 4 billion cubic meters of coal-to-natural gas production as well as a coal mine with an annual output of 26 million tons, is scheduled to be completed and put into operation by 2017.
Project approval also represents the completion of the extensive work done earlier; as for when the project will actually begin construction, it’s hard to say at this point
Construction will be carried out in phases; the first phase will involve the construction of an independent facility with a capacity of 1 billion cubic meters, avoiding excessive burdens related to public and auxiliary facilities, which will also facilitate the initiation of construction as well as normal operation in the future. If it’s to be implemented on a large scale, or if it’s not a separate installment, it’s very difficult to carry out, unless some wealthy person funds it
On May 19, 2016, the water resources assessment report for the first phase of Su New Energy’s coal-to-natural gas project, with an annual production capacity of 4 billion cubic meters, was approved by the Yellow River Water Resources Commission under the Ministry of Water Resources. Located in the Hefeng Industrial Park of the Hebuksai Er Mongol Autonomous County in the Tacheng Region of Xinjiang, this project utilizes local coal resources and employs technologies such as pressurized gasification of crushed coal, pressurized gasification of pulverized coal, and methanization to produce 4 billion standard cubic meters of synthetic natural gas per year. The environmental impact assessment report for the Su New Energy Project was approved by the **Ministry of Environmental Protection in April; thus, all the necessary approval documents for this project have now been obtained.
At 1 billion cubic meters, economies of scale are lost, and the total investment will increase further. It’s difficult for everyone!