China's Gansu Iron and Steel to construct a coal-to-gas project

Shanghai (Platts)--13Apr2011/723 am EDT/1123 GMT


Northwestern China's largest steel maker, Gansu Jiuquan Iron & Steel Group, has signed an agreement with the Zhangye municipal government to work on a coal-to-gas project soon in Zhangye city in Gansu province, the Gansu government said Tuesday.

According to the government, the coal-to-gas project will produce 4 billion cubic meters/year of gas. Gansu Jiuquan Iron & Steel Group will invest Yuan 22 billion ($3.38 billion) in construction, and the project is estimated to be completed in 2015. The whole project includes the coal-to-gas production unit and supporting facilities.

The project is in the Zhangye Industrial Zone. Jiuquan Iron & Steel Group's newly registered subsidiary Gansu Hongsheng Renewable Energy Co. Ltd. will construct and operate this project.

Under a 2009 agreement between the Zhangye government and China's largest gas supplier China National Petrochemical Corp., the output of this project will be purchased by CNPC directly and will be pumped into China's West-to-East gas pipeline to supply the cities along it.

--Silvia Yu, newsdesk@platts.com



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