Shenhua Group's Fujian Luoyuan Bay Power Plant Receives Preliminary Approval

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Researched by Industrial Info Resources China (Beijing, China)--Shenhua Fujian Energy Company Limited (Fuzhou, Fujian), a subsidiary of Shenhua Group Company Limited (Beijing), recently received written approval from the National Energy Administration (NEA) to kick off pre-stage preparation for the proposed Fujian Luoyuan Bay Coal-Fired Power Plant, according to an announcement from Shenhua Group on October 12, 2012.

This is the first power plant project to receive a "road slip" from the NEA this year, and is an important step for Shenhua Group, following the approval of a 10 million-metric-ton (MMT) national emergency coal storage base in Luoyuan Bay. Shenhua Group has made a firm step toward new energy project development in the "West Taiwan Straits" Economic Zone.

As reported, the proposed Luoyuan Bay Coal-Fired Power Plant will be a part of Shenhua Group's Luoyuan Bay Coal Storage, Transfer and Power Integrated Complex, which is located at the Kemen Port Area of Luoyuan Bay in Lianjiang County, in eastern China's Fujian province. According to the Strategic Cooperation Framework Agreement signed between Shenhua Group and the government of Fujian Province, the Coal Storage, Transfer and Power Integrated Complex will comprise a 2,000-megawatt (MW), coal-fired power plant and a coal storage base, with annual turnover capacity of 20 MMT in the initial stage, with a further expansion to 4,000 MW and 30 MMT after the completion of Phase II.

Shenhua (Fuzhou) Luoyuan Bay Port & Eletric Company Limited (Fuzhou, Fujian), a company established specifically for the project, will be responsible for the construction and future operations. In September 2012, the engineering service contract for the project was awarded to North China Power Engineering Company Limited (NCPE) (Beijing), a subsidiary of China Energy Engineering Corporation (Beijing).

Presently, the project is working with the NCPE for the preliminary engineering and preparation of bidding documents. Construction on the project is expected to kick off in the first half of 2013. Upon completion, the project will be a new profit growth point for Shenhua Group, and important support in the improvement of the comprehensive utilization of coal produced from Shenhua Group and in the improvement of social and economic benefits and in its overall competitive force.

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