Huineng Gets Approval for Coal-to-SNG Project     

Huineng Group has got approval by the National Development and Reform Commission (NDRC) for its coal-to- SNG (synthetic natural gas) in Erdos, Inner Mongolia, ASIACHEM Consulting released on December 18th, 2009.
   The coal-to-SNG project, located in Yijinhuoluo, Erdos of Inner Mongolia, is estimated to cost RMB8.87 billion. The project is designed to produce 1.6 billion Nm3 of gas per year.
   The approval of Huineng's coal-to-SNG project reflects the government is pushing forward the demonstration of coal-to-SNG project, to help provide relatively cheap and reliable source of natural gas for the domestic market.
   Huineng Group is a private holding company based on Erdos, Inner Mongolia. In 2008 the company achieved 15 million tons of coal in coal production, with sales of RMB 6.8 billion. Huineng Group currently has coal production capacity of 23 million t/a, additionally 800 million t/a under construction.
   Datang is building its coal-to-gas project in Keshiketeng, Chifeng, Inner Mongolia. The first phase is scheduled to start up in 2010, with an initial capacity of 1.3 billion cubic meters per year. (CCR2009 No. 26)
   In addition, Shenhua Group Co., Ltd. is constructing a coal-to-gas plant in Erdos of Inner Mongolia. The first phase is scheduled for startup by 2012, targeting for producing 2 billion cubic meters of synthetic natural gas per year. (CCR2009 No. 12)
   According to ASIACHEM, coal-to-SNG plants are becoming the new focus in China's coal chemical industry. The 1st Coal-to-SNG Conference will be held in Beijing during January 20th-21st, 2010. Currently there are about 15 coal-to-SNG projects proposed in China. It is expected that China will have around 20 billion Nm3/a SNG capacity in 2015.