02 August 2012 10:23 [Source: ICIS news]
SINGAPORE (ICIS)--China Datang Corp has started conducting trial runs at its new 1.33bn cubic metre (cbm)/year coal-to-gas project at Chifeng in ?xml:namespace>
Feedstock coal will be supplied by Shengli Coalfield at Xilinhot in
The company was trying to distribute the gas through PetroChina’s Beijing-Shaanxi pipeline, but negotiations on prices were still not final, the source said.
“As we have not reached any agreement on the prices we had to abandon the current output [gas released into the air] and may consider turning it to liquefied natural gas (LNG) for sale,” the source added in Mandarin.
Most coal-based gas producers in
Comparing with conventional natural gas, the unconventional coal-based gas has higher production cost.
However, buyers do not want to pay higher price which makes it difficult for the producers to sell their gas outputs, industry sources said.
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