Inner Mongolia's Ordos city produced 321,100 tonnes of coal-based oil products from January to May, falling 9.11% year on year, and the sales slid 12.02% to 292,000 tonnes, data showed.
In particular, China Energy Investment Corporation (CHN Energy)'s direct coal liquefaction project produced a total of 232,700 tonnes of coal-based oil products, down by 12.48% from the year-ago level, with sales at 208,800 tonnes, a 14.23% fall year on year.
Yitai Group's indirect coal liquefaction project produced a total of 88,400 tonnes of oil products, ticking down by 1.11% on the year. The sales of coal-based oil products reached 83,200 tonnes, dropping by 5.99% from the year earlier.
Huineng coal-to-natural gas project produced 192 million m3 of natural gas, a decrease of 1.46% year on year, all of which were converted into liquefied natural gas (LNG) of 130,700 tonnes, marginally falling by 0.05% from a year ago. The sales hit 130,300 tonnes, a year-on-year decline of 0.3%.
Located in Ejin Horo Banner, Ordos City, Inner Mongolia, CHN Energy's direct coal liquefaction project is the world's only one million-tonnes level coal direct liquefaction pilot project, with an investment of more than 10 billion yuan ($1.42 billion). Its commercial operation started in 2011.
Yitai Group's 2 million tonnes coal-to-oil project will need a total investment of 29.07 billion yuan. The full construction is expected to kick off in the second half of 2020. After the project is put into production, it will produce 2,135,500 tonnes of oil products and liquefied petroleum gas and 157,700 tonnes of by-products like alcohols, sulfur and ammonium sulfate annually.
The phase I Huineng 400 million m3 coal-to-natural gas project had produced nearly 2 billion m3 of natural gas since its commercial production in 2004. The Phase II project with an investment of 12 billion yuan and planned to start operation in 2021 will have annual output of 1.2 billion m3 of coal-based natural gas.
There are also many other coal chemical projects on the agenda of Inner Mongolia government in 2020.
(Writing by Shengnan Liu Editing by Jessie Jia)
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