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For media release

Backgrounder 1: China’s Coal-to-Gas Initiative - Statistics and Analysis

July, 2014

Synopsis

2013 saw the release of the “Airborne Pollution Prevention and Control Action Plan” and the “12th 5-Year-Plan

on Natural Gas Development”. These policies provided the context for faster approval of coal-to-gas projects by

National Energy Administration, with many domestic energy enterprises leaping to file applications for new coal-

to-gas plants. The year 2013 had therefore been deemed the golden year for coal-to-gas industry.

However, the overheated development of coal-to-gas industry has drawn much doubt and debate among many

energy experts and industry peers due to its inherent problems with water consumption, energy efficiency,

pollution control and carbon emissions.

In addition, since two model plants (Datang’s Inner Mongolia Keqi plant and Qinghua’s Xinjiang Ili plant) began

production last year, there has been active discussion about whether the necessary conditions are in place for

the grand-scale industrialization of coal-to-gas production. However, this debate has been hampered by the lack

of project-level operation information and raw data. Take for example the size of projects. There is huge

discrepancy among the lists compiled by different organizations regarding plant size; and many commentaries /

researches are based on data that’s outdated.

In order to assist industry researchers and policy makers better understand the true picture of the scale of coal-

to-gas industry, Greenpeace has collated information on all 50 coal-to-gas projects including size, investment,

environmental evaluation and water consumption. Based on this information Greenpeace has conducted a

systematic and in-depth analysis, summarized as follows:

Of the 50 coal-to-gas projects across the country, 80% are located in the northwest region (Xinjiang,

west Inner Mongolia, Ningxia and Gansu) and collectively contributes to 72.4% of the industry’s total

output.

The industrialization of coal-to-gas production is very likely to gravely deepen the water crisis in Inner

Mongolia, Xinjiang and Gansu provinces.

Coal-to-gas production may bring relief to smog conditions in selected regions, but will likely increase in

coal consumption and carbon emission across the country.

China’s two coal-to-gas model projects suffer from various technical problems and have elicited

controversy

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1. Size of whole industry estimated at 225 billion m3/year, with 80% of projects based in Northwest

According to the latest research, there are 50 coal-to-gas projects nationwide, which are undergoing different

stages of development: 5 under construction or in operation, 16 in preparation stage, 18 being planned and 11

newly signed (since 2013).

In terms of production capability, as of June 2014, taking into account all projects in various stages of

completion, the combined total potential output is estimated to be 225 billion m3/year. Of this, projects already

in production account for 2.7 billion m3/year, projects under construction 14.4 billion m3/year, projects in

preparation 66.2 billion m3/year, projects being planned 63.7 billion m3/year,and projects newly signed 78.0

billion m3/year. 1

Figure 1. Coal-to-gas Plants - Output by Province & Status Figure 2. Coal-to-gas Plants - No. of Projects by Province & Status (billion m

3/year)

A Sector Overheating? New coal to gas project plans will bring 12 times more capacity than current projects in

operation or under construction

This explosion in coal-to-gas project development has been spurred by an expedited approval process for coal-

to-gas projects in 2013, which was done in response to greater gas demand to replace coal as fuel source. In the

7 months between August 2013 and February 2014, 11 companies signed contracts with local governments,

investing in coal-to-gas projects with a total production output of 78 billion m3/year. Given that China’s total gas

consumption reached 167.6 billion m3 in 2013 (Greenpeace estimates), the total new pipeline of coal-to-gas

projects will thus be 1.34 times this figure.

1 “projects in preparation” refers to projects that have obtained the “go-ahead” permit from NEA and are undergoing

approval process; “projects being planned” refers to projects in preparation phase that have yet to obtain the “go-ahead” permit; “newly signed” projects include only those projects signed since 2013.

Region

In operation

/ under constructi

on

In prepa-ration (“Go-

ahead”)

Planned Newly Signed

Inner Mongolia

West 1 5 1 6 East 1 1 2 2

Xinjiang 2 8 13 2 Shanxi 1 1 Gansu 1

Liaoning 1 Anhui 1

Ningxia 1 Total 5 16 18 11

Grand Total 50

Region

In operation

/ under constructi

on

In prepa-ration (“Go-

ahead”)

Planned

Newly Signed

Inner Mongolia

West 1.6 20.0 4.0 34.0 East 4.0 4.0 8.0 32.0

Xinjiang 7.5 36.0 43.7 12.0 Shanxi 4.0 4.0 Gansu 4.0

Liaoning 4.0 Anhui 2.2

Ningxia N/A Total 17.1 66.2 63.7 78.0+

Grand Total 225

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Another alarming observation is that while the preliminary target for coal-to-gas production set by NEA for end

of the 13th 5-year-plan period is 50 billion m3/year, the coal-to-gas sector has run much faster and further than

this. With 225 billion m3/year capacity in the pipeline, this is 4.5 times larger than the NEA target.

Figure 3. Coal-to-gas projects - output by location (100,000 m3/year)

Geographic distribution of Coal-to-Gas plant capacity

In terms of production capability by geographical location, projects located in Inner Mongolia top the chart with

a total of 107.6 billion m3/year. Of this, 59.6 billion m3 comes from west Inner Mongolia (Ordos and the vicinity)

and 48.0 billion m3 comes from east Inner Mongolia (Hulun Buir and the vicinity).

At second is Xinjiang with 99.2 billion m3/year, followed by Shanxi (8.0 billion m3/year), Gansu (4.0 billion

m3/year), Liaoning (4.0 billion m3/year) and Anhui (2.2 billion m3/year).

Greenpeace calculates that 72.4% of the proposed coal-to-gas developments is located in the northwest region

(Xinjiang, west Inner Mongolia and Gansu) of the country.

In terms of the number of projects, there are 50 in total, with 25 located in Xinjiang, 19 in Inner Mongolia, 2 in

Shanxi, and 1 each in Ningxia, Gansu, Liaoning and Anhui respectively.

Investors in Coal-to-Gas plant capacity

Looking at companies which are investing in coal-to-gas projects, the biggest group (35% of total production

capability) is made up of locally based energy conglomerates, specifically companies based in the eastern

provinces, such as Zhejiang Energy Group, Shandong Energy Group and Tianjin Energy Investment Group.

0

20

40

60

80

100

120

In operation /under construction

In prepa-ration

Planned

Newly Signed

Northwest

Region, 72.4%

Northeast

Region, 23.1%

Shanxi &

Anhui, 4.5%

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This is followed by coal enterprises (23%), power enterprises (14%) and oil & gas enterprises (11%).

Of the business that are involved in coal to gas developments, central and provincial government-owned

companies own 80% of total production capability, while non-state private enterprises hold 20% of total

production capability, according to Greenpeace estimates.

Figure 4. Coal-to-gas production capability by company ownership (100,000 m3/year)

2. 80% of total production located in high water risk zone, with some key areas set to exceed red line

water mark

0

200

400

600

800

1000

1200

Inner Mongolia Xinjiang Gansu

Private

Local SOE

Central SOE

23%

14%

11%

35%

17% Coal

Power

Oil Gas

Local Energy

Others

Company background

Production capability

Coal 524

Power 320

Oil gas 240

Local energy 782

Others 384

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Figure 5. Coal-to-gas projects – water risk mapping

Greenpeace believes that water constraints may be the most important factor regarding the viability and

feasibility of Coal-to-gas development in China. Using the World Resources Institute’s2 global water risk mapping

tool, Greenpeace has found that 79.7% of the projected production output is located in areas of high or

extremely high water risks.

The projects which are located in areas of extremely high water risk include: Qinghua’s Ili plant, Xintian’s Ili plant,

China Power Investment Corp’s Huocheng plant, China Power Investment Corp’s Yinan plant, China Energy’s

Baotou plant, Xiexin’s Yining plant and Inner Mongolia Mining’s Hohhot plant.

2 Global water risk mapping tool, World Resources Institute, 2013, http://www.wri.org/our-work/project/aqueduct/

2% 18%

66%

14% Medium risk

Medium to highrisk

High risk

Extremely highrisk

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Figure 6. Coal-to-gas projects – breakdown by water risk

Besides understanding water supply risks by location, water consumption is also equally important.

According to the “Policy on Development of Intensive Coal Processing Industry (Draft)”, fresh water

consumption of coal-to-gas projects should be kept below 6.9 tons/1000 m3. 3 Using this factor as a baseline,

Greenpeace’s calculates that if all currently identified projects go into production, water consumption will reach

0.68 billion m3/year in Xinjiang, 0.41 billion m3/year in west Inner Mongolia and 0.331 billion m3/year in east

Inner Mongolia. If we consider only those projects that have obtained the “go-ahead” permit, water

consumption in these three regions will amount to 0.3, 0.15 and 0.06 billion m3/year in Xinjiang, West Inner

Mongolia and East Inner Mongolia respectively.

With these numbers, we can compare them to the government’s provincial water consumption limits.

The key document here is the 2013 “Most Stringent Water Resources Control” policies4, which takes reference

from Document No. 1 of the 2011 “State Council’s Decision to Expedite Water Reform”. In this “Most Stringent

Water Resources Control” policy, the State Council emphasized that the “most stringent water resources control”

policies will be implemented across the country, setting clear red-line targets at provincial levels for total water

consumption, water efficiency and water quality control.

Xinjiang’s Water Scarcity: A Risky Situation and an Expensive Problem to fix

Greenpeace has identified Xinjiang’s water situation as an area of particular concern.

3 This number is a theoretical benchmark from a technical perspective and is relatively low. We use it as an indicator of the

intensity of water consumption in the coal-to-gas industry. The Draft for Comment was completed in April 2014 but final version not yet released. For full text of the Draft see: http://wenku.baidu.com/view/81e386e50975f46527d3e185.html 4 http://www.gov.cn/zwgk/2013-01/06/content_2305762.htm

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Figure 7. Xinjiang’s water consumption – past record and future quotas (billion m3)

For Xinjiang, the “Most Stringent Water Resources Control” policy set water consumption quotas at 51.6 billion

m3/year in 2015, 51.6 billion m3/year in 2020 and 52.7 billion m3/year in 2030.

However, by 2013, due to extensive energy consumption by the industrial enterprises and lack of management

expertise, Xinjiang’s total water consumption reached 61.7 billion m3, 5 completely exceeding the 2015 quota by

over 10 billion m3. Now, in order to meet the 2030 target of 52.7 billion m3, Xinjiang must reduce its water

consumption by 0.53 billion m3 per year over the next 18 years (2013 – 2030), even while it faces a potential

increase of 0.68 billion m3 of additional water consumption coming from all the coal-to-gas projects which will

come online.

At the same time, reducing its water consumption will not be cheap. According to a study by the State Council

Office in Jan 20136 looking at the pilot project of Ordos Irrigation Zone along Yellow River which uses the water

saving approach of exchanging industrial investment for agricultural water rights, a 0.1 billion m3 reduction in

agricultural water consumption would require an average investment of RMB 0.53 billion 7 . Given that Xinjiang

has to reduce water consumption by 0.53 billion m3 for the next 18 years, the total costs of this effort may well

be over RMB 50 billion.

5 Xinjiang Water Conservancy Conference 2004, Xinjiang Daily, Jan 13. http://xjrb.xjdaily.com/tsnb/1004689.shtml

6 “Implementation of Review System of the Most Stringent Water Resources Control”, Doc No 2 [2013] issued by the State

Council Office, Jan 2, 2013. 7 Performance Evaluation on Recent Water Rights Transfer in Irrigation Zone at Yellow River South Bank in City of Ordos,

Ordos Water Conservancy Network. http://www.ordossl.gov.cn/slgc/sqzh/200910/t20091029_93566.html, Apr 22, 2013.

0

100

200

300

400

500

600

700

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

2030: 52.674

2015: 51.56

2020: 51.597

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Beyond the financial implications of water scarcity, there is also the risk of greater regulatory scrutiny as water

risks intensify.

According to Article 13 of the “Implementation of Review System of the Most Stringent Water Resources Control”

8, provinces which fail to pass the regular review of water resources, may face orders to rectify the situation, and

approvals for new water inlet and sewage outlet into the river discontinued, and environmental evaluations put

on hold.

However, despite Xinjiang’s water scarcity woes, there have been no announcements of a clear plan to deal with

Xinjiang’s water issues to meet its “three red line” commitments. 9

Inner Mongolia’s Water Scarcity: Ordos faces a difficult situation

The other province that is likely to face water scarcity situation is Inner Mongolia.

Despite the abundance of water resources in eastern Inner Mongolia, 8 out of 12 leagues in the region are

committing to various coal-to-gas projects, which are heavy water consumers. West Inner Mongolia is dryer, and

is likely to struggle even harder to meet its water consumption quota. Ordos, a prefecture-level city, located in

West Inner Mongolia, will face perhaps the most difficult task of all, compared with other prefectures.

Figure 8. Water consumption in City of Ordos (100 billion m3)

8 “Implementation of Review System of the Most Stringent Water Resources Control”, Doc No 2 [2013] issued by the State

Council Office, Jan 2, 2013. 9 Tahe online, report from June 16, 2014. http://www.tahe.gov.cn/e/action/ShowInfo.php?classid=65&id=19078.

Actual Water Consumption Water Consumption Quota

CTG Projects Water

Consumption

9

According to provincial water allocations, Ordos’ water consumption quotas is 1.66 billion m3/year for 2015,

1.68 billion m3/year for 2020 and 1.99 billion m3/year for 2030. However, in 2012, the actual annual water

consumption in Ordos was already at 1.57 billion m3, leaving total growth space of only 0.11 billion m3 for the

next 8 years leading to 2020.

Even more alarming, Ordos has lined up a series of coal-to-gas projects, with a total production capacity of 43.6

billion m3, 41% of total regional capacity in the whole region. Assuming these coal-to-gas projects adhere to

government standard of 6.9 tons of water per 1000 m3 of gas, these projects are estimated to consume 0.3

billion m3 of water per year, easily exceeding the total allowable growth space (0.11m3) for the next 8 years. This

does not even consider other major water-intensive coal chemical projects in Ordos, such as the 3.8-million-ton

coal-to-olefin plant, a 2.24-million-ton coal-to-oil plant, a 0.9-million-ton coal-to-ethylene glycol plant, and other

projects which are currently in the pipeline. 10

3. Coal to Gas developments threaten to outweigh efforts to control Coal Consumption and Carbon Emissions

Impact on regional control policy for coal consumption

The current drive to develop China’s coal-to-gas sector has been framed as a means to curb smog. However,

Greenpeace believes that this development may have actually result in increased carbon emissions, and coal

consumption.

Increased Coal Consumption

As part of China’s National Air Pollution Plan, various provinces and cities such as Beijing, Tianjin, Hebei,

Shandong, Shaanxi and Chongqing have committed to coal consumption reduction targets, which total up to

0.118 billion tons of reduction by 2017 compared to 2012 levels.

Assuming that all proposed Coal-to-Gas projects adhere to the restriction of less than 2.3 tons of standard coal

per 1,000 m3 of gas, and that they meet the NEA’s 2017 target for production (32 billion m3) 11, this suggests that

the coal-to-gas industry’s coal consumption in 2017 will increase by around 0.103 billion tons compared to 2012

(converted to raw coal).12

Thus, we have situation here where much of proposed provincial coal consumption reductions (0.118 billion)

may be offset by increased coal consumption (0.103 billion) stemming from coal-to-gas developments.

Increased Carbon Emissions

In a report “Impact of Carbon Tax on Coal Chemical Industry”, the China National Petroleum and Chemical

10

Map of China’s modern coal chemical projects, 2014, http://www.anychem.com/, May 2014 11

Plans for Energy Industry to Strengthen Prevention and Control of Airborne Pollution, Energy Doc No 506 [2014] issued by the National Development and Reform Commission (NDRC), NDRC, NEA and MEP, March 2014 12

Assuming 1 ton of raw coal equivalent to 0.714 tons of standard coal

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Planning Institute estimates that for every 1,000 m3 of gas produced in the coal-to-gas process, 4.83 tons of

carbon dioxide is emitted.13 We take this as the average intensity of carbon emission in coal-to-gas production.

Assuming that all of the proposed coal-to-gas industry 225 billion m3 becomes operational, a total of 1.087

billion tons carbon emission will be emitted annually. This is an enormous amount, approximately 1/8 of China’s

carbon emissions in 2011 (8.71 billion tons) and would double China’s chemical industry emissions which was 1

billion tons in 2011.14

Figure 9. Carbon emission of Coal-to-gas industry by 2020 – absolute value and comparison

Looking at the projects which are in preparation or under construction, they have a combined production

capability of 83.3 billion tons. Assuming they enter into full production by around 2020, they will generate 0.402

billion tons of carbon dioxide per year, slightly higher than USA’s 2020 emission reduction target (0.396 billion

tons) and slightly below the European Union’s carbon 2020 emission reduction target (0.452 billion tons).15

Due to the magnitude of carbon emission in coal-to-gas industry, the NDRC stipulated in letter regarding the

approval of preparatory works for Xinjiang Zhundong Coal-to-gas Pilot Project that, “high concentration carbon

dioxide from coal-to-gas plants be utilized in the pilot experiment of oil displacement and carbon storage in the

surrounding oil fields.”16 This is technology known as Carbon Capture, Use and Storage (CCUS). However,

despite this initiative, there has as yet been no project that has a designated CCUS scheme.

13

Theoretical optimum value. Our understanding however, based on the actual type of furnace and quality of coal, is that unit emission of carbon dioxide in the coal-to-gas production varies between 4.5 to 5.6 tons per 1,000 m3 of output gas. 14

Han Hongmei, China National Petroleum and Chemical Planning Institute, 2014 China Forum on Development in the Intensive Coal Processing Industry, May 2014. 15

Report on Global Trend in Carbon Dioxide Emission, 2013, PBL 2013. 16

NDRC’s Response Letter regarding Approval of Preparation Works for Xinjiang Zhundong Coal-to-gas Pilot Project, Energy Doc No 2309 [2013] issued by NDRC, September 22, 2013 http://www.sxnygs.com/Htmls/xinwenzhongxin/gonggaoxinxi/NF6TP20662J046F26P.html

USA’s carbon emission reduction target by 2020

Carbon emission of coal-to-gas projects already approved in China

European Union’s carbon emission reduction target by 2020

0.396 billion tons of CO2

0.402 billion tons of CO2

0.452 billion tons of CO2

NEA’s 2020 coal-to-gas target 0.242 billion tons of CO2

11

For comparative analysis on the various means of exhaust utilization and alternative routing from a full life cycle

point of view, see research papers by Li Junfeng and Ding Yanjun et al.17

4. Operational and Technical Difficulties at model Coal-to-Gas projects

Since the beginning of 2014, delays and accidents have taken place at both coal-to-gas model projects, Datang’s

Inner Mongolia Keqi Coal-to-gas Plant and Qinghua’s Xinjiang Ili Coal-to-gas Plant.

The two pilot projects, which are meant to be model projects for the industry, have both experienced serious

technical failure within a few months of commencing production and have had to shut down for repair work. At

the same time, accidents have occurred and there have been casualties, and these accidents have also triggered

complaints from local residents regarding the severe pollution from the plants’ exhaust gas.

Datang’s Keqi Coal-to-gas Plant

The Datang Hexigten Qi Coal-to-gas Plant, located in Keqi, Inner Mongolia, is a national model project that

commenced gas production in December 2013. Construction started in August 2009 and was completed in July

2012, and investors include Datang International, Datang Power, Beijing Gas and Tianjin Gas. The project utilizes

the technique of pressurized gasification of pulverized coal.

According to reports from Xinhua Press18, 2 people died and 4 were injured at a hydrogen sulfide leaking

accident on January 17. Post-accident investigation revealed that the leak occurred due to corrosion of inner

wall of the gasifying furnace and internal kit problems, both of which happened because of insufficient

inspection in coal quality during project preparation phase.

Although production resumed after temporary measures were taken, the company’s General Manager Li Kejun

expressed his concerns during an interview in June, “Right now we don’t know whether the materials

constituting the pipes and the equipment are suitable. Also there is no manual on inspection, problem

identification, precaution or measures to be taken. What kind of corrosive substances does lignite have and how

much of each? Exactly what kind of impact do these corrosive substances have on the system post gasification?

What kind of corrosion would these substances cause to the pipes, conduit and equipment? None of these can

be answered now. Nor can it be predicted whether the kind of materials that constitute the pipes and the

17

Li Junfeng, Yang Xiu, Tian Chuan, Analysis on Technical Environment and Economic Indicators of Coal-to-gas Industry, National Center for Climate Change Strategy and International Coorperation, April 2014, http://www.ncsc.org.cn/article/yxcg/yjgd/201404/20140400000852.shtml; Ding Yanjun et al., Department of Thermal Engineering, Tsinghua University, Coal-to-synthesized-gas: Solution to China’s Security in Energy Supply and Carbon Emission Reduction? Page 445-453, Energy Policy, Issue 55, 2013 18

“2 Dead and 4 Injured in Accident at Datang International’s Keqi Coal-to-gas Plant”, northnew.cn, January 20, http://www.northnews.cn/2014/0120/1505094.shtml

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equipment can adapt to lignite in time or where leaks might occur after a period of wear-in and corrosion. There

we have a major issue.”19

On top of this, there is also report that stench is detected at as far as 60 km from the plant.20

Qinghua’s Ili Coal-to-gas Plant

The QinghuaCoal-to-gas project, located in Ili, Xinjiang, is a national model project invested by Qinghua Group.

Construction started in May 2010, was completed in May 2013, and gas production commenced in August 2013.

The project utilizes the technique of pressurized gasification of pulverized coal, and output gas entered the

west-to-east gas transportation pipeline in January 2014.

According to a Bloomberg report on March 7, 2014, villagers living in the vicinity of the plant said the exhaust

gas from the plant caused many to experience many symptoms, including sharp pain in the throat, amnesia,

dizziness and constant outbursts of cold.21 It was reported that the company promised to halt production and

rectify the situation.

The Qinghua coal-to-gas project draws water from the nearby Kashkar River and Gil Grand River. The drought in

the Ili valley this summer, the worst in 19 years, reduced rainfall by 56% compared to the same period in past

years. 1.92 million mu of crops were hit by the drought, leading to around RMB 0.7 billion Yuan of economic loss.

Under the coordination of the local government, Qinghua Group will cease to draw water from the Gil Grand

River, which means the plant now faces serious water shortage.22

The plant produced between January and February of this year a total of 86.29 million m3 of coal converted gas

and has suffered a loss of RMB 81.84 million.23Greenpeace believes that these accidents strongly suggest that

the coal-to-gas process is an risky, immature technology. At the same, these incidents also suggest real-life

professional expertise regarding the management of this technology is thoroughly lacking.

5. Summary and Conclusions

Taking all of these observations into consideration, Greenpeace believes that China’s burgeoning Coal-to-Gas

sector strongly risks serious environmental repercussions surface in its application, including significantly

increased water consumption, water pollution, carbon dioxide emissions, industrial emissions, and other 19

“Model Project – a Path Treaded in Uncharted Territory”, China Coal Chemical, May 2014, http://www.coalchem.org.cn/guandian/html/800215/148988.html

20 Datang’s Coal-to-gas Project Stepped on Landmine, Production Ceased, Huaxia Times, April 3, 2014,

http://finance.ifeng.com/a/20140403/12039186_0.shtml 21

China Outsourcing Smog to West Region Stirs Protests, Bloomberg, March 7, 2014, http://www.bloomberg.com/news/2014-03-06/china-outsourcing-smog-to-west-region-stirs-protest.html 22

Huang Sanping Inspects Drought at Ili, official website of Yining County Government, June 26, 2014, http://www.xjyn.gov.cn/a/zhengwudongtai/20140627/25292.html 23

Qinghua’s Coal-to-gas Plant Drives Significant Economic Growth in 2014, official website of Yining County Government, June 26, 2014, http://www.xjyn.gov.cn/a/zhengwudongtai/20140326/21648.html

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environmental issues that are associated with coal exploitation. In view of this, Greenpeace believes there

should be greater scrutiny regarding the further expansion of the coal-to-gas sector.

APPENDIX

Source of data and data manipulation

We have collated information on all known coal-to-gas projects in the country from all of the internet. We then

compared the data with project information previously collated by other institutions and took out those projects

on which there has been no update since 2012. Regarding Shenhua’s Ordos project and Guodian’s Xing’an

League project, we have updated the data based on recently acquired information.

For more details on project information and source of data, see our coal-to-gas mapping database at:

www.greenpeace.cn/chinacoaltogas

Note 1: Xintian Ili project began construction last year prior to obtaining the “go-ahead” permit from NEA.

Currently the project is still in preparation phase. Approval has not yet been granted.

Note 2: Regarding Guodian’s Xing’an League project, the previous project owner, Inner Mongolia Guodian

Energy Investment Company, has withdrawn from the project. Project ownership and construction has now

been taken over by Inner Mongolia Mining Group. The change has been filed with NEA.

Note 3: Qinghua Ili project phase 1 has been completed and production already started. Phase 2 is under

tendering process. Production is projected to start in 2014.

Note 4: Production capability of the Jinshajiang Ningdong project is not known at present.

The Greenpeace “Coal-to-gas Industry Statistics and Analysis” portfolio contains four documents. We welcome requests for more detailed information, more data as well as contacts of industry experts. We look forward to communications and information exchange at all times. Media contact: Tang Damin, International Media Officer, Greenpeace Email: tang.damin@greenpeace.org

Mobile: (+ 86) 139 1152 6274