CNOOC to Start Coal Based Gas Project in Shanxi

China National Offshore Oil Corp (CNOOC) plans to start up a 2 bn cubic metre coal-based gas plant at Datong in Shanxi province, north China, in 2014, a company source told ICIS.

The $3.98bn project will also consist of a second-phase project, with the same production capacity at the same site, which is expected to be completed in 2016, the report said.

The project is co-funded by CNOOC, the Datong government and Datong Coal Mine Group, with CNOOC holding a controlling stake. Datong will supply coal to the project, which will be equipped gas pipelines and a 1.5m cbm/day liquefaction plant.