Tebian Electric Apparatus (600089.SH) has announced that its subsidiary, Xinjiang Tianchi Energy Co., Ltd., will invest 17.039 billion yuan in the construction of a coal-to-natural-gas project in Zhundong. This initiative aims to leverage the company’s coal resource advantages, ensuring cleaner and more efficient utilization while enhancing the added value of coal.
The project will primarily be executed by Xinjiang Zhunneng Chemical Co., Ltd., a wholly-owned subsidiary of Tianchi Energy. The planned coal-to-gas facility will have an annual production capacity of 2 billion Nm³ of synthetic natural gas, with a total investment of 17.039 billion yuan.
The construction will encompass a complete set of coal-to-gas production equipment, substations, control rooms, laboratories, a comprehensive office building, and auxiliary production installations, including coal transportation and storage systems as well as environmental protection facilities. The construction period for the project is set for three years, with production expected to commence in the fourth year, reaching 80% of its production load, and achieving full capacity by the fifth year.
It is anticipated that the project will convert approximately 5.7974 million tons of raw coal annually, consisting of 477,100 tons of fuel coal and 5.3203 million tons of raw material coal. The expected natural gas production capacity will be 2.05428 billion Nm³ per year, with 840 million Nm³ converted into liquefied natural gas (LNG), amounting to 58,267.2 tons annually. Additionally, byproducts such as coal tar, crude oil, benzene, and ammonium sulfate will be produced.
The target market for the natural gas produced by this project includes regions in North China and East China, where natural gas consumption is high and prices are favorable, facilitating transportation through pipelines. The liquefied natural gas will primarily serve nearby enterprises as key customers.
