Exploration & Production

Chinese SNG struggles with shaky fundamentals

China’s first coal-to-SNG projects have run up deep losses since they started coming online six years ago, which is likely to dim long-term prospects for the technology China’s first coal-to-SNG projects have run up deep losses since they started coming online six years ago, which is likely to dim long-term prospects for the technology.
By Tang Tian 24 January 2019 0 33861
The Datang Fuxin CTG plant. (Fuxin government)

The key issue: Three out of four pilot projects in China for converting coal to SNG have racked up huge financial losses since going online. Their struggles are likely to scare off investment for the foreseeable future and thwart the Chinese coal industry’s long-term hopes for coal gasification.

Interfax Analysis: China’s National Energy Administration (NEA) surprised industry observers five years ago when it said it wanted to see the country produce 50 billion cubic metres per year of synthetic natural gas (SNG)...