Datang Keqi Coal Gas Project Partially Recovered
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After nearly three months of shutdown for maintenance, the Datang Keqi Coal-to-Gas Project has started its trial operations. Some internal gasification units have already been restored, and it is expected that the remaining facilities will resume operations this month. This marks a significant step forward in the project's recovery.
The project was unexpectedly shut down in March 2024, with the downtime lasting only about a month. According to industry sources, the primary cause of the production halt may be related to the gasification furnace not being well-suited to the local coal quality. This led to issues such as corrosion of the gasifier’s inner walls and thinning of the inner jacket, which affected the system's stability and safety.
The Datang Inner Mongolia Keqi Coal-to-Gas Natural Gas Project is China's first large-scale coal-based natural gas demonstration project, operated by Datang International Power Generation Co., Ltd. Located in Keshiketengqi, Chifeng City, Inner Mongolia, the project began construction in August 2009. With a total investment of 25.71 billion yuan, it aims to produce 4 billion cubic meters of natural gas annually. In December 2013, the first batch of facilities was successfully commissioned and connected to CNPC’s Beijing pipeline network, delivering coal-to-natural gas products to the national grid.
However, the recent technical issues caused significant financial losses. Industry experts estimate that daily losses could reach millions of yuan. Additionally, environmental concerns surrounding coal-to-gas projects have sparked increased public and regulatory attention.
Zhong Xuezhi, an energy analyst at China Investment Advisors Co., Ltd., noted that while technological challenges in coal-to-gas projects are generally solvable, broader factors such as policy constraints, industrial environment, and resource availability significantly impact the industry’s long-term development.
Recent reports, including the “China Low-Carbon Development Report (2014)†published by Tsinghua University, highlight that coal-to-natural gas projects are still under development in China. While they can help reduce coal consumption, their ability to effectively cut emissions like NOx remains limited. Moreover, these projects carry significant environmental and resource-related risks, including high carbon footprints and water usage, leading to regional environmental pressures and carbon emission challenges across the country.
In the process of producing coal-to-gas, managing carbon dioxide and other waste gases remains a major challenge. Additionally, these projects consume large amounts of water, especially in regions where coal is abundant but water is scarce, such as Xinjiang and Inner Mongolia. Studies show that producing one cubic meter of natural gas requires approximately 6 liters of water and 3 kilograms of raw coal, further straining local resources.
Wan Xuezhi, another industry expert, warned that easing policies for the coal gas sector might lead to overcapacity. If coal prices rise, the cost of coal-to-gas projects could increase, and water scarcity would remain a critical issue. These challenges cannot be ignored, but the industry is moving forward rapidly. How to address them effectively will be a key task for both government agencies and leading companies in the coming years.