23 Jun 2009 13:14

Xinjiang coal chemical base home to 13 energy companies - official

Shanghai. June 23. INTERFAX-CHINA - The subsidiaries of 13 leading Chinese energy companies, including Shenhua Group Corp., China Huaneng Group, China Huadian Corp. and Shandong Luneng Group Co. Ltd., have begun operating out of the Zhundong Coal Chemical Base in western China's Xinjiang Uyghur Autonomous Region, a local government official told Interfax on June 23.

"The expansion of the Zhundong Coal Chemical Base is proceeding smoothly. There are 43 energy firms that have signed contracts to invest in the base, including the 13 already in operation," Kang Fumin, an official from the Xinjiang Coal Chemical Industry Development Office, said. "The remaining energy companies will gradually begin operating at the base over the next few years."

The Zhundong Coal Chemical Base is surrounded by 213.6 billion tons of proven coal reserves and aims to become the one of China's leading coal, thermal power and coal chemical production bases within the next decade. Construction started on the base in 2006.

"The Xinjiang government is currently working on building up the infrastructure around the base, including water lines, roads and railways," Kang said.

The improved infrastructure will help other firms get their operations up and running faster and improve the efficiency of transporting the base's coal and chemicals to eastern China, Kang said.

By 2015, the base will be able to produce up to 136 million tons of coal, 9 million tons of coal-based liquid, 12 billion tons of coal-based gas and 2.4 million tons of coal-based fertilizer per year, Kang said. That same year, the base is expected to be home to thermal power plants with a total installed capacity of 12 million kilowatts.