China's first coal-to-natural gas project will break earth in Hexigten Banner in Chifeng City, Inner Mongolia Autonomous Region.
Datang International Power Generation Co., Ltd. (SEHK: 0991), a listed arm of China Datang Corporation, is the main investor of this project. Taking lignite as raw material, the project is designed to be able to produce 12 million cubic meters of natural gas per day, or 4 billion cubic meters annually. Notably, the project adopts several homemade patents or advanced technologies like pressurized gasification of crushed coal and low-temperature methanol scrubbing, which are the most matured, safe and economical ways to transform coal into gas in China. Shengli Coalfield in Xilinhot City in Inner Mongolia will be the main coal supplier to this project. The coalfield reserves 22.4 billion tons of lignite that is met the requirements for raw materials for coal gasification. The natural gas made by Hexigten project will be transported to Beijing.