China eyes coal-to-liquid plant construction start by end-2010

24 June 2010 09:30  [Source: ICIS news]

SHANGHAI (ICIS news)--China’s Shenhua Ningxia Coal Industry Group and South Africa’s energy giant Sasol are expected to start construction of a 80,000 bbl/day coal-to-liquids (CTL) joint venture plant by the end of this year, a Chinese official said on Thursday.

The plant converting feedstock coal to petroleum products will be located at Ningdong Energy and Chemical base in northwestern Ningxia province.

"The feasibility study on the plant has been completed and submitted to the central government for approval at the end of last year,” the official from local economic regulator Ningxia Development and Reform Commission said.

“Now the project is waiting for the green light from the government,” the official added.

“As far as I know, the National Development and Reform Commission (NDRC) will discuss the project soon. So we hope the project could start engineering work by the end of this year,” the official told ICIS.

The investment needed for the plant and shareholding of the joint venture partners would be decided after getting the approval from NDRC, the official said.

Shenhua Ningxia is a subsidiary of China’s largest coal producer Shenhua Group which owns a 1.08m tonne/year coal-to-liquids (CTL) plant at Erdos, Inner Mongolia.

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By: Judith Wang
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