Tens of billions of dollars in Datang power generation invested in coal gasification

Datang Power Generation (601991) wholly-owned subsidiary Datang Energy Chemical Co., Ltd. intends to contribute 10.565 billion yuan to form two coal gas companies.　　Among them, to Datang Inner Mongolia Kashk Coal Natural Gas Co., Ltd. to invest 3.9321 billion yuan, the proportion of capital contribution is 51%, to fuxin Coal gas company to invest about 6.633 billion yuan, the contribution ratio of 90%. Annual production capacity of 8 billion parties according to the announcement, Energy chemical Company and Datang Group signed an agreement on May 24, respectively, according to 90% and 10% of the proportion of funds to form a "Datang Liaoning Fuxin Coal Gas Co., Ltd.", the project total investment of 24.57 billion yuan.　　Fuxin Coal Gas company operating period is set to 50 years. The company has announced that the energy chemical Company and Beijing Gas Group Co., Ltd., Datang Group and Tianjin Jin-energy investment company jointly funded the construction of coal gas project, the total investment of 25.71 billion yuan.　　The above-mentioned companies signed the agreement May 24, respectively, according to 51%, 34%, 10% and 5% of the proportion of funds to form the "Datang Inner Mongolia Kashk Coal Gas Co., Ltd.".　　Two coal natural gas projects are based on Datang power plant in Inner Mongolia Shengli coalfield East second mine of lignite as raw material, production capacity of 4 billion, respectively, to 8 billion square per year. Fuxin Project produced natural gas through long-distance pipeline supply Shenyang, Tieling, Fushun, Benxi and Fuxin and other cities, the pipeline line length 334 kilometers.　　Fuxin Coal gas project plan is divided into three phases, the first phase of the project is expected to be completed and put into operation in 2013. G-Flag project production of natural gas using long-distance transmission pipeline, pipeline from the project site (Hexigten Qi station) to the last station in Beijing Miyun, pipeline length of 359 kilometers.　　The first phase of the project is scheduled to be completed and put into operation in 2012.　　Optimistic about the project prospect Datang Power generation has developed a "electricity-oriented, multiple synergy" development strategy, the company said that the two coal gas project construction can make the company in the Clean energy production development, is the company's development strategy for the specific implementation.　　G-Flag Coal gas project location has a wealth of coal resources, can fully guarantee the project's raw materials and fuel supply, at the same time, the flag coal gas project location has more abundant water and unobstructed traffic conditions, is conducive to reducing the flag coal gas project operating costs. After the completion of the project, the main supply target is Beijing and the cities along the gas pipeline line.　　The company said that the company will benefit from the growing demand for clean energy in Beijing to increase its overall profitability after the completion of the coal gas project. The main target of fuxin coal gas supply is the Tieling, Fushun, Benxi, Fuxin and other cities in Shenyang, Liaoning Province and its surroundings. The economic development of Liaoning Province is rapid and the gas gap is increasing.　　These cities are relatively concentrated and facilitate the transmission of natural gas products through long pipelines. The company also said that although the current domestic market demand for clean energy gas is much higher than the supply, and the market price of natural gas with oil, coal and other energy prices rise, but ifFuture fluctuations in the price of natural gas will make the flag coal gas company and Fuxin coal gas company future benefits are affected. The company will pay close attention to domestic and international natural gas market trend, and strive to make the flag coal gas company and Fuxin Coal Gas company has a strong ability to resist market risk.