12 Nov 2009 07:56

Coal-to-SNG projects start construction in Xinjiang

Shanghai. November 12. INTERFAX-CHINA - China Power Investment Corp. (CPI) and Xinwen Mining Group Corp. have started construction on two coal-to-synthetic natural gas (SNG) projects in the Xinjiang Uyghur Autonomous Region, state media reported on Nov. 11.

CPI and Xinwen Mining, a coal producer based in Shandong Province, plan to invest a total of RMB 50 billion ($7.32 billion), according to China Radio International. Each project is designed to be able to produce 6 billion cubic meters of SNG a year. Construction, which started on Nov. 10, is expected to take between three and five years to finish.

The SNG produced at the projects will be sold to downstream consumers via the second phase of the West-East Pipeline.