Profitability concerns dog Datang’s CTG divestment
Datang’s Fuxin CTG plant. The plant is understood to be still unfinished. (Fuxin government)
Profitability concerns have slowed work at China Datang’s two coal-to-gas (CTG) plants, hampering efforts by the state-owned power group to offload them as part of a restructuring programme aimed at shoring up its balance sheet.
The two projects – a 4 billion cubic metre per year plant in Keqi, Inner Mongolia and a 4 bcm/y plant in Fuxin, Liaoning province – are behind schedule. The first phase of the Keqi plant has a capacity of 1.33 bcm/y, but it has supplied just 700 million cubic metres (MMcm) of SNG in the 400 days since it was commissioned in December 2013.