Shaanxi Coal Group (China) Invests Nearly 1.58 Billion U.S. Dollars Along the “Belt and Road” 18 May 2018
Shanxi Coal Group has arranged various projects such as petroleum refining, coal resources exploration, coal chemical industry, and coal and electricity integration.
Shanxi is not only the birthplace of Ancient Silk Road, but also the starting point of New Silk Road. As a key enterprise in Shanxi Province, Shanxi Coal Chemical Industry Group has planned a number of projects in the countries and regions along the “Belt and Road”, including petroleum refining, coal resources exploration, coal chemical industry, and coal and electricity integration. The total investment is approximately 1.58 billion U.S. dollars.
Build the foundation through large-scale projects to build China's international business card
Kyrgyzstan is an important country in China leading to Central Asia. In 2010, Shanxi Coal Group established Central Asia Energy Corporation. In the same year, Central Asia Energy invested about 500 million U.S. dollars in Kyrgyzstan and built an 800,000-ton/year oil refining project of Petroleum. At the end of December 2013, the project was basically completed. In January 2017, it officially entered the stage of production and operation. At present, the system is running smoothly.
It is reported that this project is the largest investment project, and one of the largest tax source projects.in Kyrgyzstan since the founding of the country. In the construction and operation of the project, direct use of more than 1,000 local employees led to over 2000 indirect employment.
Central Asia Energy Corporation is relying on China National Petroleum Corporation’s oil project to win the oil and gas field blocks in neighboring countries. At the same time, Central Asian Energy Company will gradually enter the crude oil exploitation field in Central Asia through the participation of shares and holdings in the Kyrgyzstan oil production region.
Central Asia Energy Corporation has also established an oil sales group to comprehensively strengthen the construction of gas station networks. At present, the layout of nearly 100 gas stations in Kyrgyzstan has been completed through acquisition, construction, and leasing, and it is planned to complete the target of 1,000 gas stations in Tajikistan and other places within the “Thirteenth Five-year Plan” period. In the next step, Central Asia Energy will also use oil sales network as its base to explore the development of non-oil business such as the construction of gas station convenience stores and highway service areas.
Use infrastructure to explore and open up new markets
"Facilities connectivity" is one of the important contents of the "Belt and Road Initiative." Tajikistan’s weak infrastructure, especially the shortage of electricity, restricts social development. Therefore, Shanxi Coal Construction Group actively participated in the construction of power transmission and transformation projects in the Dankola Economic Zone in Tajikistan.
After a multi-site investigation in the early stage, they established an overseas team based in Tajikistan. The total investment of the project is 22.8 million U.S. dollars. It is estimated that the investment will be recovered and the profit will be 21.3 million U.S. dollars within 7 years.
The team is mainly responsible for the construction of a new 220/35/10 kilovolt substation and two 220 kilovolt double loop transmission lines totaling 41 kilometers. The planned capacity of the substation is 2×125 megawatts. Upon completion, it will provide power supply services for nearly 60 enterprises within the planning of the special economic zone.
At present, the project design plan has been reviewed by the Tajikistan Power Corporation, and after the completion of high-voltage transmission lines reconnaissance, it will soon begin construction.
With this project, Shanxi Coal Construction Group will continue to cooperate with Tajikistan and countries along the “Belt and Road” and actively explore new markets.
Supported by technology, use coal in a clean and efficient way
Xinjiang is an important area for the construction of China's "Belt and Road." In October 2012, Shanxi Coal Group registered and established its Xinjiang company. In view of its advantages in the clean and efficient utilization of coal, Shanxi Coal Xinjiang Company plans to build a large-scale clean and high-efficiency coal conversion demonstration project in the Tacheng area from the beginning of construction. After the project is completed, the products will be sold to Central Asia. The project has been listed in the National 13th Five-Year Planned Reserve Project.
In addition, Shanxi Coal Group introduced Japanese technology and built a 300,000-ton ethylene glycol project in Binchang Mining Area. The project is planned to be completed and put into production in 2019. Downstream products are polyesters, which can be used in the modern textile industry.
In May 2017, Shanxi Coal Group and Japanese Mitsubishi Chemical Holdings Co., Ltd. and other companies exchanged information on the Yulin Coal Subsidiary Utilization Chemical New Material Project. The project will convert about 20 million tons of coal annually, and can produce 5.9 million tons of new materials including polyolefins, polyesters, etc.