• 4 minutes Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
  • 9 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 17 minutes Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 1 hour Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 12 hours Corruption On The Top: Netanyahu's Wife Charged With Misuse of Public Funds for Meals
  • 1 hour Saudi Arabia turns to solar
  • 29 mins Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 5 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 1 hour Why is permian oil "locked in" when refineries abound?
  • 50 mins Teapots Cut U.S. Oil Shipments
  • 18 hours Gazprom Exports to EU Hit Record
  • 18 hours OPEC Meeting Could End Without Decision - Irony Note Added from OPEC Children's Book
  • 18 hours Could oil demand collapse rapidly? Yup, sure could.
  • 26 mins Oil prices going down
  • 14 hours U.S. Withdraws From U.N. Human Rights Council
  • 2 hours Hot line, Macron: Phone Calls With Trump Are Like Sausages Best Not To Know What Is Inside
  • 2 hours Putin Says 'Fierce' U.S. Politics Hindering Summit With Trump
  • 11 hours EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 17 hours Sell out now or hold on?
The Fed Is Driving Down Oil Prices

The Fed Is Driving Down Oil Prices

The hawkish U.S. Federal Reserve…

China's Shenhua Group Investing $8 Billion in Xinjiang Coal Projects

Shenhua Group Corp Ltd., China's biggest coal producer, will invest $8 billion in coal-to-oil conversion projects in the country’s western Xinjiang Uighur autonomous region.

According to Shenhua Group Corp Ltd., within four years Shenhua will reach 70 million tons of annual coal production and build a coal-to-oil conversion plant with annual production capacity of 3 million tons, China Daily reported.

Shenhua Xinjiang Energy Co Ltd. vice-general manager Wang Ningbo said that the company is waiting for official governmental approval of the project, adding, "Hopefully, we will get the approval by the end of this year and the construction of the first 300 tons of coal-to-oil project will start in May 2012. We cannot start coal production in Heishan until we get the approval because it is a key coal supplier for the coal-to-oil projects in Xinjiang."

The investment is not without controversy, as Xinjaing is an arid region with limited water resources. China Center for Energy Economics Research at Xiamen University director Lin Boqiang observed, "The process of coal-to-oil conversion produces wastages in coal and water, which has a bad impact on the environment. There must be more economical ways to find a substitute for oil instead of coal-to-liquid fuel. The technology is not mature enough. The industry still lacks standards on quality and cost management."

By. Charles Kennedy, Deputy Editor OilPrice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News