On September 22, 2021, Xingyi, Guizhou plans to build a 1 billion cubic meter coal-to-natural gas project. The project is located in Qingshuihe Industrial Park, Xingyi City, Guizhou Province, with a total investment of 5 billion yuan, including 4.9 billion yuan in fixed asset investment and 100 million yuan in working capital.

Guizhou Natural Gas Project

The main works include coal preparation facilities, crushed coal pressurized gasification facilities, gas shift facilities, gas purification facilities, absorption refrigeration facilities, and methanation facilities. Auxiliary facilities mainly include sulfur recovery facilities, gas-water separation facilities, phenol recovery facilities (single series), ammonia recovery facilities, etc. Supporting public auxiliary works: thermal power station, water supply and drainage system, circulating cooling water system, saline wastewater treatment and reuse system, wastewater treatment system, fire protection system, central control room, etc. Other facilities: comprehensive office building, environmental monitoring station, etc. According to current coal-to-natural gas production technologies and methods, every 1 billion cubic meters requires an investment of 5 billion yuan. A typical project is about 4 billion cubic meters and requires an investment of 20 billion yuan. There are currently three commonly used production technologies: crushed coal fixed-bed pressurized gasification process, coal-water slurry gasification process, and pulverized coal pressurized gasification process. Among them, the crushed coal fixed-bed pressurized gasification process has the lowest production cost, while the coal-water slurry gasification process has the highest production cost. In production costs (excluding by-products), raw material costs account for 41.4%; fuel and power costs account for 18.2%, totaling 59.6%, and coal price is the most sensitive factor affecting production costs; depreciation and maintenance costs account for 28%, also having a relatively large impact on production costs; other costs such as water, electricity, and labor account for 12.4%.

Abundant coal resources. Xingyi City is very rich in coal resources, with reserves of 7.528 billion tons and prospective reserves of 19.6 billion tons. Resources/reserves at depths shallower than 2,000 m are 16.037 billion tons, of which 8.509 billion tons are shallower than 1,000 m. At the same time, Guizhou and surrounding areas are rich in lignite, and we also have a comparative advantage in price. Based on the advantage of abundant coal resources, the basic structure for the development of the coal chemical industry in Qianxinan Prefecture has basically taken shape. During the "12th Five-Year Plan" period, our prefecture will be built into an important base for coal chemical and heavy chemical industries in the province. Abundant power resources. Qianxinan Prefecture has become an important power source base and hub for the "West-East Power Transmission" project in Guizhou Province and even the entire western region. By the end of the "12th Five-Year Plan", the installed capacity of hydropower and thermal power within the jurisdiction is expected to exceed 10 million kilowatts (including boundary river hydropower stations). In particular, Xingyi City has abundant hydropower resources. The Xingyi Thermal Power Plant has been completed and put into operation, a self-supplied power plant with 2 units is under construction, and there is a power supply network independent of the main grid of China Southern Power Grid. It has the advantage of retained electricity from Lubuge and the city has 3.3 million kilowatts of large and small hydropower installed capacity. In terms of price, electricity is also cheaper than in surrounding areas.

Abundant water resources. Surface water is abundant in Qianxinan Prefecture, with an average annual runoff of 10.606 billion cubic meters over many years, in addition to 19.69 billion cubic meters of transit inflow, so water resources are very rich. By the end of 2009, the prefecture had built 121 reservoirs of small (II) type or above, including 5 medium-sized reservoirs and 29 small (I) type reservoirs, with a total storage capacity of 201.1232 million cubic meters. Currently built and under-construction projects include Wugachong Reservoir in Pu'an County with a capacity of more than 100 million cubic meters, Dayudang Reservoir in Xingren with more than 60 million cubic meters, and Zhelun Reservoir with 14.1 million cubic meters. Xingyi City alone has large water conservancy projects such as Weishanhu Reservoir with 18 million cubic meters, Mulanghe Reservoir with 90 million cubic meters, and Wanfeng Lake with more than 10.6 billion cubic meters. Low labor costs. Qianxinan Prefecture is rich in rural labor resources, with 1.4779 million rural laborers. Building a coal-to-natural gas project in Xingyi, Qianxinan Prefecture, has advantages not only in raw materials, power, and labor, but also in transportation pipelines.

The project construction is in line with the development direction of the coal chemical industry in Qianxinan Prefecture, conforms to national industrial policy, and complies with the national orientation for industrial transfer from the east to the west. The technology is advanced, mature, and reliable, with low production costs, high product quality, and strong market competitiveness. It is of great significance for improving the capacity for local resource conversion, increasing product added value, extending the industrial chain, reducing long-distance transportation of coal resources, and addressing employment.