TBEA to invest in CNY 17bn coal-to-gas project

TBEA Co., Ltd. [SSE:600089] has announced plans for its subsidiary, Xinjiang TBEA Energy Co., Ltd., to invest CNY 17,039.41 million in a coal-to-natural gas project located in the Zhundong Economic and Technological Development Zone. The project will be spearheaded by Xinjiang Zhuneng Chemical Co., Ltd., a wholly-owned subsidiary of Xinjiang TBEA Energy. The project aims to produce 2.05 billion Nm³/year of natural gas, including 582,672 tons of liquefied natural gas (LNG). Construction is expected to take three years, with 80% production capacity in the fourth year and full production in the fifth year. The project's capital expenditure will be covered by CNY 8,520.36 million equity investment from Zhuneng Chemical, financed via strategic investors and TBEA Energy self-raised funds, with the remainder funded through bank loans. The announcement also outlines plans for shareholder review of the company's guarantee management system.