RUS | ENG | All
Enter the email or login, that you used for registration.
If you do not remember your password, simply leave this field blank and you will receive a new, along with a link to activate.

Not registered yet?
Welcome!

2014-09-05 17:40:00

SINOPEC: $10 BLN PLAN

SINOPEC: $10 BLN PLAN

Sinopec Corp is pushing ahead with plans to build China's largest plant to convert coal into synthetic gas, shaking off worries the $10 billion scheme could be hit by cost overruns that have dogged similar projects.

The world's top energy user has made largely untested coal-to-gas (CTG) technology a key part of its strategy to boost the use of cleaner fuels as it battles pollution in its big cities.

With production from conventional gas fields struggling to keep up with demand, China has increasingly relied on imports piped in from Central Asia plus long-term supply deals for liquefied natural gas.

But Beijing aims to dampen its dependence on imports by using gas converted from coal to supply 12 percent of the world's No.4 gas market by 2020, up from virtually nothing now.

Market participants had questioned whether Sinopec would proceed with its 8-billion cubic metres of gas a year CTG plant in the remote northwestern region of Xinjiang after two pilot projects owned by state-run Datang International Power became a government restructuring target due to cost overruns and poor management.

"Sinopec is actively pushing forward the Zhundong project and the Xinjiang-Zhejiang-Guangdong pipeline," said company spokesman Lu Dapeng, adding it would take 4-5 years to build the plant after getting final regulatory approval.

China's second-largest state energy major is finalising feasibility studies for the plant, according to one senior researcher involved in the process.

The studies, which assess the economics of the scheme and address key issues like water-availability and technical know-how, are near completion after almost 16 months of work, he said.

Submitting the studies would be a key step towards winning final government approval.

"Sinopec wants its CTG plan to go ahead," said the researcher, who requested anonymity because he is not authorised to speak with media.

"(It) has decades of experience in petrochemicals, an industry that requires fine management."

PROCEED WITH CAUTION

China's top energy policy setter, the National Energy Administration, has repeatedly called for "cautious" and "orderly" CTG development, with local governments keen to lure big-ticket investments.

CTG technology, similar to that used in apartheid-era South Africa to make oil from coal, uses vast volumes of water and produces a large amount of carbon dioxide. But proponents argue that any carbon emissions would typically be concentrated in sparsely populated regions.

Datang Power in July announced it had entered a deal with a state-asset management company to restructure its coal-to-chemical business, which includes two CTG plants. The segment posted a pre-tax loss of 2.19 billion yuan ($360 million) by the end of 2013, according to Datang's financial report.

The 1.33 bcm/year plant in Inner Mongolia, the country's first pilot, has been running at just over 50 percent of capacity after starting up in late 2013 and after a technical glitch early this year forced a temporary shutdown, according to a Datang official.

Construction at its second plant, in the northeastern city of Fuxin, was halted last year, due to a cash-squeeze and an uncertain market outlook, the official said.

"It's a mix of bad management, lack of know how and other factors like a lack of market access," said the official, who declined to be named due to the sensitivity of the matter.

"We were like the amateurs trying to play the professional game."

reuters.com

Tags: CHINA, SINOPEC, GAS
Chronicle:
SINOPEC: $10 BLN PLAN
2022, June, 28, 11:44:00
6TH ANNUAL LNG SUMMIT USA
The 6th Edition of Wisdom’s Much Acclaimed Annual LNG Summit Will Be Held Live in Houston - PREPARING THE INDUSTRY FOR THE RISE IN DEMAND FOR LNG
SINOPEC: $10 BLN PLAN
2022, June, 28, 11:43:00
9TH INTERNATIONAL LNG CONGRESS LNGCON 2023
9th International LNG Congress (LNGCON 2023) 6-7 March, 2023 Link to the Congress website: https://bit.ly/3tXVmr7
SINOPEC: $10 BLN PLAN
2022, June, 28, 11:40:00
S.KOREAN NUCLEAR SUPPORT
South Korea’s new president, Yoon Suk-yeol, said on 22 June that in order to rebuild the nuclear industry that was “devastated by the previous administration”, the government will allocate KRW92.5 billion ($70 million) from the energy budget for the restoration of nuclear power generation capacity.
SINOPEC: $10 BLN PLAN
2022, June, 28, 11:35:00
U.S. SMR FOR ROMANIA
Romanian company Nuclearelectrica and NuScale will cooperate with the US Trade and Development Agency (USTDA) on a series of engineering and design activities and studies, as well further technical analyses of the Doicești site, a former thermal power plant site which has been identified as a potential location for the SMR plant.
SINOPEC: $10 BLN PLAN
2022, June, 28, 11:30:00
U.S. SOLAR POWER 25%
US Energy Information Administration reports a capacity factor of 25% for solar generation.
SINOPEC: $10 BLN PLAN
2022, June, 28, 11:25:00
AUSTRALIAN SMART ENERGY
As energy is of national importance, a national policy, national rules and regulations are necessary. At the same time, we are facing massive changes in the energy sector.
SINOPEC: $10 BLN PLAN
2022, June, 27, 11:45:49
OIL PRICE: BRENT NEAR $113, WTI ABOVE $107
Brent edged down 8 cents to $113.04 a barrel , WTI was at $107.38 a barrel, down 24 cents.
All Publications »