Sinopec's giant coal-gas conversion project gets Beijing’s approval

David Nealis President of Ceres Ltd
www.ceres888.com 

Sinopec's giant coal-gas conversion project gets Beijing’s approval

China's second-largest oil and gas producer, China Petroleum & Chemical (Sinopec), has received approval for its proposed giant project to turn coal into natural gas. Sinopec Chairman Fu Chengyu made the announcement in which he stressed that the cost of the project will only be known following a detailed feasibility study.  According to Fu, by converting coal to natural gas, the energy efficiency of coal consumption would rise to 60%.  An 8,000-km pipeline from Xinjiang to Guangdong via Zhejiang will be constructed to carry the converted gas. The project is in line with China's strategy to increase energy efficiency and cut reliance on oil and gas imports according to state run media.

China, the world’s 2nd largest economy, continues to be the most important market for companies looking for growth and Chinese companies continue to globalize by investing and selling their products in new markets; what is your company’s strategy for engaging China?

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