China’s CEIC to invest in multi-billion dollar coal-to-oil project, targeting petrochemical sector
This initiative, located in Hami, Xinjiang province, is set to produce 4 million tons of oil products annually, primarily intended as feedstock for the petrochemical industry.
China Energy Investment Corp (CEIC), the country's largest coal-mining enterprise, has announced plans to invest 170 billion yuan ($24 billion) in a major coal-to-oil conversion project, according to a report from Bloomberg. This initiative, located in Hami, Xinjiang province, is set to produce 4 million tons of oil products annually, primarily intended as feedstock for the petrochemical industry.
This investment is part of a broader strategy to bolster oil production in the coal-rich region, with Hami signaling approval for over 300 billion yuan in coal-to-oil projects through 2025. By the end of the decade, it is projected that 152 million tons of coal will be converted into oil products in the region.
The project aligns with China's efforts to enhance economic self-sufficiency, particularly within the petrochemical sector, by reducing its reliance on imported oil. CEIC’s ability to leverage large-scale coal extraction and its advanced liquefaction technologies is expected to contribute to the success of the venture.
China Energy Investment Corp, which also engages in wind and solar energy, reported a revenue of approximately $107.09 billion in 2022.
Written by: Derek Yong