China Central Enterprises to Invest More than $134 Billion in Xinjiang Coal Industry

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Researched by Industrial Info Resources China (Beijing, China)--The Xinjiang autonomous region has attracted major enterprises held by the central government to acquire quality resources, and is home to the 14th large-scale coal base to be proposed in China. According to local media, there are 104 enterprises presently engaged in the development of coal, power and coal chemical industries in Xinjiang. These enterprises are involved in 66 coal chemical projects with a total investment of more than $134 billion; of which, 28 projects are under construction and another 28 plan to kick off construction within this year.

Among these central enterprises, China National Coal Corporation (China Coal) (Beijing) has kicked off several coal chemical projects in Yili and East Junggar, with a total investment of more than $7.3 billion. During the 12th Five-Year Plan (2011-15), China Coal will invest more than $15.4 billion in Xinjiang. It's expected that the designed coal production capacity of the project will exceed 40 million metric tons per year (MM T/yr) in 2015.

The top five power producers in China also will begin construction on a number of coal projects in Xinjiang. China Guodian Corporation (Beijing) just kicked off its 4 billion-cubic-meter-per-year, coal-based, natural gas project with a total investment of $4.2 billion in Xinjiang. The total production capacity of the associated coal mine project will be 16 MM T/yr, with a total investment of about $1 billion. During the 12th Five-Year Plan, China Guodian will invest more than $23 billion in Xinjiang. China Huaneng Group (Beijing) will invest more than $15.4 billion to develop two large-scale energy bases in East Junggar and Turpan-Hami, as well as a series of coal power, gasification and new energy projects in Xinjiang.

China Shenhua Group's (Beijing) $5.08 billion coal power base, which has a total installed capacity of 9.34 gigawatts (GW) in East Junggar, kicked off on May 9, 2011. As per schedule, Phase I of the project will begin operation in 2013.

State Development and Investment Corporation's (SDIC) (Beijing) 12-MM T/yr, 1,320-megawatt (MW) Hami No.1 Coal Mine and Hami Power Plant Phase I also began construction on June 21 this year.

As reported, Xinjiang has predicted coal resources of 2.19 trillion metric tons, accounting for 40% of the total in China. However, the current coal output in Shanxi-Shaanxi-Gansu-Inner Mongolia-Ningxia and the output in East China currently account for 73% of the total output in China, while the output in the Xinjiang and Qinghai regions account for about 2.73%.

According to plans, the coal output in Xinjiang will be expanded to 400 MM T/yr, coal-based natural gas will reach 13.5 billion cubic meters per year, and the installed capacity will reach 28.25 GW in 2015.

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