The fuel supply
is one of the key economical issues to resolve and the Government
of Mongolia had been starting to implement projects to produce fuel from coal. In the frameworks, during his official visit to the PR of China held in October 2013
, Prime Minister of Mongolia N.Altankhuyag
was present the signing ceremony of “Memorandum of Understanding on Cooperation between the Ministry of Mining of Mongolia and Sinopec Group
of China” to build a gas plant based on Mongolian thermal coal resource that aimed to provide domestic needs with its production and further to export to China.
The project team to introduce the coal gasification
technology will be established under the Ministry of Mining
and in the scope of the 30 billion USD project, four plants and some complexes to produce 16 billion cubic meters of coal gasification. Within September of this year the feasibility study should be completed and the next level of project implementation is to go into intergovernmental negotiation for further discussion, also the construction issues is planned to be completed in 2015-2018.
This is not the first discussed and resolved coal dilution project to carry out, the Government of Mongolia had been negotiating with German ThyssenKrupp Uhde
to build the coal liquefaction plant in Mongolia since 2009, where the latter part concluded economic studies in 2012, moreover ThyssenKrupp Uhde and the Government of Mongolia
established an agreement to start the project.
Earlier, in the scope of developing the “Sainshand Industrial Park”
Project, it was also discussed to build a “Coal Gasification Plant” in collaboration with “Bechtel”
, the company that won in the bidding as General Advisory Service Provider for “Sainshand
Industrial Park” Project in May 2011.
Besides in July 2011, it was reported that an Australia-based Cougar Energy Limited
had been engaged in the development and commercialization of underground coal gasification (UCG) projects in Mongolia.
Moreover in August 2011, South Korean steel maker POSCO
had signed a collaborative memorandum of understanding with Mongolian MCS Group to build a coal gasification plant in Mongolia, where parties had been negotiating since 2010 and the economic studies were completed by Canadian Hatch Company.
Sinopec Group (China Petrochemical Corporation) is Asia's largest oil refining and petrochemical enterprise, administered by SASAC for the State Council of the People's Republic of China. It is headquartered at Chaoyangmenwai in Beijing, across the road from the headquarters of competitor CNOOC Group.