The popularity of the national coal-to-gas project was quickly cooled by a notice issued by the National Development and Reform Commission.
Recently, the National Development and Reform Commission issued a document stating that coal-to-natural gas projects must be rationally laid out. Before the country introduces a clear industrial policy, coal-based natural gas and supporting projects are uniformly approved by the National Development and Reform Commission. Moreover, before the country introduces a clear industrial policy, local governments at all levels should strengthen project management and must not approve or record coal-to-gas projects without authorization.
The NDRC's statement, in the eyes of the industry, means that new coal-to-gas projects will become more and more difficult in the future, and the coal-to-gas projects that are currently being actively launched by major energy companies may be suspended.
It is understood that coal-based natural gas is made from coal as raw material, using synthetic gas produced by gasification, purification and methanation technology. A fact that is widely acknowledged in the industry is that the increasing demand for natural gas in the domestic market provides strong support for the development of coal-based natural gas, and the expectation of natural gas price hikes has caused various capitals to flock to coal-to-gas projects.
Including central energy companies and many local energy companies have been involved in it, such as CNOOC, Datang Power, Huaneng Group and China Power Investment Group have launched coal-fired natural gas projects with investment of tens of billions of yuan.
CIC consultant energy industry researcher Zhou Xiujie told the China Sankei News that the National Development and Reform Commission has tightened the approval authority for coal-based natural gas, indicating the country's cautious attitude toward the development of coal-based natural gas, especially in the early stage of coal-based natural gas development.
Zhou Xiujie analyzed that although China's coal-to-gas technology is mature and capable of commercial production, many issues concerning the scientific, economic, and environmental aspects of coal-based natural gas remain to be demonstrated. Local governments and enterprises have seen the positive prospects of coal-based natural gas, and they have launched coal-to-gas projects, resulting in more than 20 coal-to-gas projects across the country, which has disrupted the country's unified planning and may even waste resources.
The surge in industry investment has led to local signs of overheating, which has finally attracted the attention of national authorities.
“Coal-made natural gas is a resource, capital and technology-intensive industry. There are many external support conditions for project construction, including coal mining and conversion, water resources security, technology integration and optimization, and the construction of natural gas pipeline network. Cultivating the gas market, etc., is a complicated system project, which must be considered and rationally arranged under the guidance of the national energy plan," the National Development and Reform Commission said in the notice.
"In the process of developing coal-to-gas, the unified planning of the industry is very important. Only under the unified planning can the sustainable development of the industry be realized." Guo Haitao, assistant director of the China Energy Strategy Research Center, told the reporter of China Sankei Shimbun. Planning is conducive to improving the utilization of resources, and can also properly control production capacity to prevent problems such as overcapacity.
Zhou Xiujie told reporters that the development of coal-based natural gas should fully consider the local resource endowment and environmental sustainability. Because the development of coal-to-gas requires the backing of sufficient coal resources and requires sufficient water resources, this is not suitable for areas where coal and water resources are scarce. The sewage, waste gas and other pollutants discharged from the coal-to-natural gas process must be scientifically treated, and coal-based natural gas cannot be developed at the expense of the local environment.
Recently, the National Development and Reform Commission issued a document stating that coal-to-natural gas projects must be rationally laid out. Before the country introduces a clear industrial policy, coal-based natural gas and supporting projects are uniformly approved by the National Development and Reform Commission. Moreover, before the country introduces a clear industrial policy, local governments at all levels should strengthen project management and must not approve or record coal-to-gas projects without authorization.
The NDRC's statement, in the eyes of the industry, means that new coal-to-gas projects will become more and more difficult in the future, and the coal-to-gas projects that are currently being actively launched by major energy companies may be suspended.
It is understood that coal-based natural gas is made from coal as raw material, using synthetic gas produced by gasification, purification and methanation technology. A fact that is widely acknowledged in the industry is that the increasing demand for natural gas in the domestic market provides strong support for the development of coal-based natural gas, and the expectation of natural gas price hikes has caused various capitals to flock to coal-to-gas projects.
Including central energy companies and many local energy companies have been involved in it, such as CNOOC, Datang Power, Huaneng Group and China Power Investment Group have launched coal-fired natural gas projects with investment of tens of billions of yuan.
CIC consultant energy industry researcher Zhou Xiujie told the China Sankei News that the National Development and Reform Commission has tightened the approval authority for coal-based natural gas, indicating the country's cautious attitude toward the development of coal-based natural gas, especially in the early stage of coal-based natural gas development.
Zhou Xiujie analyzed that although China's coal-to-gas technology is mature and capable of commercial production, many issues concerning the scientific, economic, and environmental aspects of coal-based natural gas remain to be demonstrated. Local governments and enterprises have seen the positive prospects of coal-based natural gas, and they have launched coal-to-gas projects, resulting in more than 20 coal-to-gas projects across the country, which has disrupted the country's unified planning and may even waste resources.
The surge in industry investment has led to local signs of overheating, which has finally attracted the attention of national authorities.
“Coal-made natural gas is a resource, capital and technology-intensive industry. There are many external support conditions for project construction, including coal mining and conversion, water resources security, technology integration and optimization, and the construction of natural gas pipeline network. Cultivating the gas market, etc., is a complicated system project, which must be considered and rationally arranged under the guidance of the national energy plan," the National Development and Reform Commission said in the notice.
"In the process of developing coal-to-gas, the unified planning of the industry is very important. Only under the unified planning can the sustainable development of the industry be realized." Guo Haitao, assistant director of the China Energy Strategy Research Center, told the reporter of China Sankei Shimbun. Planning is conducive to improving the utilization of resources, and can also properly control production capacity to prevent problems such as overcapacity.
Zhou Xiujie told reporters that the development of coal-based natural gas should fully consider the local resource endowment and environmental sustainability. Because the development of coal-to-gas requires the backing of sufficient coal resources and requires sufficient water resources, this is not suitable for areas where coal and water resources are scarce. The sewage, waste gas and other pollutants discharged from the coal-to-natural gas process must be scientifically treated, and coal-based natural gas cannot be developed at the expense of the local environment.
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