Huadian to invest 2.45 bln yuan on Xinjiang coal-to-NG project

Huadian Group Corp, one of China s leading generators, plans to invest 24.5 billion yuan in Northwestern China s Xinjiang Uygur Autonomous Region for the development of a coal-to-natural gas project, China National Radio reported.

Feasibility study report of the project, with expected natural gas output of 4 billion cubic meters, has passed review of the regional government and submitted to the National Development and Reform Commission, the report said. The project will convert coal produced in Zhundong Xiheishan Opencast to natural gas, which would then be transmitted out of Xinjiang, it noted. It is planned to come online in 2013. Investment in the first phase would be 24.5 billion yuan and the annual income is expected to reach 7.2 billion yuan, it said.

In the next ten years, Huadian would invest over 100 billion yuan on development of coal, power, and coal chemical base, thermal power cogeneration, hydropower and clean energy in Xinjiang. By 2015, the production capacity of coal-to-natural gas would reach 4 billion cubic meters, and achieve 6 billion cubic meters by 2020, according to the agreement Huadian signed with the regional government.