China Energy Inks '$84bn Framework' to Invest in West Virginia Shale

China Energy Investment Corporation has signed a memorandum of understanding with West Virginia for a framework to invest $83.7bn in shale gas development and chemical manufacturing in the US state, West Virginia's department of commerce said November 9.

The non-binding agreement was signed during US president Donald Trump’s visit to China (see banner photo, courtesy of West Virginia dept of commerce). The China Energy announcement in West Virginia was the largest investment in a series of projects in US corporations and other states totalling a reported $250bn of investment in the US.

The department said that planning for the projects is underway and will proceed in phases over the course of 20 years. Projects will focus on power generation, chemical manufacturing, and underground storage of natural gas liquids and derivatives.

Trump and his Chinese counterpart president Xi Jinping witnessed West Virginia Secretary of Commerce H. Wood Thrasher and China Energy representative Ling Wen sign the non-binding MoU between China Energy and the state of West Virginia as part of the US-China Business Exchange trade mission to enhance relations between the two countries. “The massive size of this energy undertaking and level of collaboration between our two countries is unprecedented,” said WV commerce secretary Thrasher. 

The plans demonstrate a total value chain approach, integrated from raw materials through the production of useful chemical intermediates locally.

China Energy was recently created by merger of China’s state-owned coal mining company Shenhua Group and energy producer Guodian Group. The company is the world’s largest power company.

Shardul Sharma