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Acceleration in the preliminary work for the COAL-to-GAS project jointly carried out by Tongmei and CNOOC

2016-09-20View Original

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Acceleration in the preliminary work for the Tongmei-CNOOC coal-to-gas project Author/Source: Date: 2016-09-19 Clicks: 19 All the supporting documents required for project approval have been prepared; the processes for applying for approval and establishing the cooperative companies are in full swing, while the feasibility study optimizations and project design are progressing as planned... Recently, reporters learned from the Tongmei Group that, thanks to the concerted efforts of party committees at all levels, relevant departments, and enterprises, the preliminary work for this coal-to-gas demonstration project, with a total investment of 25.853 billion yuan, is advancing at an accelerated pace. It is reported that the Demonstration Project for the Clean Utilization of Low-Grade Metamorphic Bituminous Coal (CNPC-COMCO Coal-to-Gas Project) is a **-level demonstration project for the deep processing of coal, jointly funded by CNPC and COMCO Group. This project uses raw coal produced in our city as a feedstock to produce natural gas. In line with the requirements for demonstration projects on the advanced processing of coal set by the Energy Bureau, as well as the standards for building internationally leading projects in coal processing, it relies on the first-generation coal-to-natural gas technology in China, but employs a more advanced dual-gasification process that combines coal crushing under pressure gasification with pulverized coal under pressure gasification to produce crude syngas. This crude syngas is then processed through steps such as methanation and dehydration to yield natural gas products. In addition, the by-products of coal pulverization pressure gasification, namely coal tar and crude naphtha, will be used to produce diesel and refined naphtha through hydrogenation. As designed, the project will be able to produce 4 billion cubic meters of synthetic natural gas, 70,500 tons of naphtha, 75,500 tons of diesel, 28,500 tons of crude phenol, 115,500 tons of sulfur, and 45,600 tons of liquid argon per year. Once completed, it is expected to generate annual sales revenue of 7.7 billion yuan. To enhance market competitiveness and risk resistance, the project will also include the construction of coal mines, coal-to-natural gas processing plants, as well as natural gas transmission pipelines, thereby creating an integrated industrial chain that covers coal production, natural gas processing, transportation, and sales. During the interview, the reporter learned that the project obtained approval from the **Development and Reform Commission in February 2013, and received environmental impact assessment approval from the **Ministry of Environmental Protection in March 2016. To date, all the necessary supporting documents have been prepared; efforts are currently underway to submit the approval applications and to set up the project partnership company. Construction is scheduled to begin after the project receives approval in 2017, with completion and operation set for 2020. By then, it will provide new impetus for the development of the modern coal chemical industry in our city and for achieving economic transformation.
Reply #22016-09-20
Coal prices are rising while oil and gas prices are falling; it’s very difficult to implement such projects if their economic viability is poor!
Reply #32016-09-23
If coal prices rise significantly, companies will be more motivated to start operating their coal mines in order to acquire them.
Reply #42016-09-23
Is the economic evaluation of projects at this stage a problem?

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