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Chinese Coal-to-Liquids and Gas Program Could Completely Change the World Energy Markets
China will increase LNG imports. Some predict imports of 110 billion cubic meters per year (BCM) by 2020. However, the cost of LNG is presently $16/MMBtu. This is an expensive fuel source when China has domestic options including coal-to-gas, underground coal gasification, and coal bed methane. China is therefore changing focus and is pursuing these alternatives. The biggest program includes building plants in the western and northern coal fields which will convert coal to gas. This gas will be piped across country and provide clean burning fuel for major eastern cities. It is the avowed solution to the smog problem. The reason for a huge coal-to-gas program is the low cost of the product from a reliable domestic source. Here are the cost components: …
Revision Date: 7/2/2014
Tags: McIlvaine, Market, Coal-Conversion, Coal to Gas, China