In recent years, Xinjiang has become a focal point for major domestic energy companies looking to expand their coal and chemical industries. According to information obtained from relevant departments, since 2004, leading enterprises such as Shandong Luneng, China Huadian, SDIC Group, Xuyuan Group, Henan Yima Group, and Xinwen Mining Group have actively participated in the development of coal and chemical projects in the region. According to preliminary estimates, over 100 billion yuan in investment is expected to flow into Xinjiang, signaling a surge in interest in the area's energy potential.
Shenhua Group, China’s largest coal company, is currently conducting resource exploration and coal quality assessments in the Heishan Mining Area of Xinjiang. The company plans to invest 37.5 billion yuan over the next few years to build a coal mine capable of producing 16 million tons annually, along with a coal-to-oil facility that will generate 3.2 million tons of output per year. This project represents a significant step toward advancing coal chemical technology in the region.
Just a month ago, Xinwen Mining Group signed an agreement with local partners in the Ili River Valley to develop coal resources. The group plans to invest 30 billion yuan over five years to establish a coal mine with an annual capacity of 10 million tons, as well as methanol and olefins production facilities capable of generating 5.4 million tons and 1.8 million tons respectively. Xinwen's chairman, Lang Qingtian, expressed confidence that by the end of the decade, Tianshan West could emerge as the largest coal chemical base in the country.
Earlier this year, several major energy companies, including Shandong Luneng, China Huadian, SDIC Group, Xuyuan Group, and Henan Yima Group, reached agreements with Xinjiang authorities to develop coal chemical projects locally. These partnerships highlight a growing trend of industrial collaboration aimed at leveraging Xinjiang's vast coal reserves.
Wu Jiachun, deputy director of the Xinjiang Uygur Autonomous Region Coal Industry Administration, highlighted that Xinjiang holds an estimated 2.19 trillion tons of coal reserves, making up over 40% of the nation’s total. Additionally, the region’s coalbed methane resources are approximately 6.8 trillion cubic meters, accounting for 22% of the national total—equivalent to 63% of Xinjiang’s proven natural gas reserves. Among the nine major coalbed methane fields nationwide with more than 1 trillion cubic meters of resources, three are located in Xinjiang.
Wu also noted that 90% of Xinjiang’s proven coal reserves consist of low-grade metamorphic coal, which is highly reactive and suitable for direct or indirect liquefaction. Shenhua Group has already successfully developed coal direct liquefaction technology, providing a strong foundation for future coal chemical projects in the region.
Despite its abundant coal resources, Xinjiang still faces challenges in terms of comprehensive utilization. Some industries and regions continue to experience resource waste, over-exploitation, and environmental pollution. In response, Wang Lequan, a member of the CPC Central Committee and head of the Party Committee of the Autonomous Region, emphasized the need to accelerate the development and utilization of coal resources. He called for increased foreign investment and the attraction of powerful enterprises to participate in coal and resource development, while also focusing on improving coal mining efficiency and saving resources.
Currently, the emphasis is on guiding enterprises to focus on the coal chemical industry and accelerating the pace of development and utilization. With the right strategies and investments, Xinjiang is poised to become a key player in China’s energy and chemical sectors.
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