BEIJING, April 7 China's state energy giant
Sinopec Group envisages investing 70 billion yuan ($11.3
billion) to build the country's largest coal-to-gas project in
8-10 years to meet a rising demand for natural gas, a newspaper
said on Sunday.
Coal-to-gas production facilities in Zhundong in China's
northwestern region of Xinjiang will have annual production
capacity of 8 billion cubic metres of gas (bcm), the Xinjiang
Daily said, citing Sinopec Xinjiang Energy Chemical Co Ltd, a
unit of Sinopec Group, China's second biggest energy company.
Coal extracted from two mines in Zhundong will be used to
feed coal-to-gas production facilities nearby, the daily said.
The coal mines have annual production capacity of 15 million
The natural gas produced will be transmitted through Sinopec
Group's 30 bcm/year pipeline stretching from Xinjiang to
Guangdong province in south China to Zhejiang province in east
The Xinjiang-Guangdong-Zhejiang pipeline measuring 7,927 km
(4,925 miles) gives Sinopec Group a substantial foothold in
China's gas distribution market.
(Reporting by Wan Xu and Benjamin Kang Lim; Editing by Michael