Sinopec to build China’s largest coal-to-gas project

To cost US$11.3 billion and will meet soaring demand for natural gas.

State energy giant Sinopec Group expects to finish the project in 8 to 10 years. The coal-to-gas production facilities in Zhundong in Xinjiang will have an annual production capacity of 8 billion cubic meters.

Zhundong’s coal production will be used to feed nearby coal-to-gas production facilities. The coal mines have annual production capacity of 15 million tonnes each.

The natural gas produced will be transmitted through Sinopec Group's 30 bcm/year pipeline from Xinjiang to Guangdong province in south China to Zhejiang province in east China.

The Xinjiang-Guangdong-Zhejiang pipeline measuring 7,927 km gives Sinopec Group a substantial foothold in China's gas distribution market.