Phase I, Xinjiang Kingho SNG Project Officially Enters Commercial Operation

China Kingho Xinjiang News (Wang Jinlin) At 12:00, December 30, 2013 (Beijing Time), with the opening of the SNG flow meter valve of Khorgos Station- the first station of West-East Natural Gas Transmission Project, the SNG products produced by China Kingho Xinjiang Branch began to input into the main pipe network of the second line of West-East Natural Gas Transmission Project. This marks that the first phase of the SNG project of China Kingho in Yili Prefecture has entered into a stable gas transmission stage and begun official commercial operation. Through the sampling test of Petroleum Industry Natural Gas Quality Supervision & Inspection Center (Chengdu), all indicators of SNG products are in line with the SNG Purchase and Sales Contract between the two sides. Before the official import into the main pipe network of the second line of West-East Natural Gas Transmission Project, 5.95 million cubic meters of SNG has been injected into the Yining- Horgos branch line of PetroChina.
 
    Xinjiang Kingho 5.5b m3/a SNG Project was approved by National Development and Reform Commission (NDRC) on July 11, 2012. It is the first SNG project approved by NDRC during the 12th Five-Year Plan period and also one of coal deep processing demonstration projects confirmed by the state. After the completion of the project, it can achieve RMB 15 billion of annual sales income and RMB 2.5 billion of profit and tax and directly provide nearly 10,000 jobs. The production capacity of Phase I is 1.375 billion cubic meters of SNG, which chiefly consists of such 26 units as coal preparation, thermal, air separation, gasification, change cooling, purification and methanation. Phase I opened up the process and output qualified SNG on August 20, 2013
 
    Yili Prefecture is rich in coal resources and has a high level of water resources guarantee. It is one of the five major coal production bases in Xinjiang and one of state-planned coal deep processing comprehensive demonstration areas. The first station of west-east natural gas transmission pipeline is set within the territory of Yili Prefecture. Therefore, the construction of SNG project in Yili has unique advantages in terms of in-situ conversion of coal resources and change of resource advantages into economic advantages. The construction of Kingho Group is of great significance for promoting local economic and social development and boosting the new industrialization process of the autonomous region. It will have a positive impact on national adjustment and optimization of energy structure and national energy security. 
    The project is the first large-scale SNG project put into trial use in Xinjiang. In the debugging process of each system, Kingho Xinjiang engaged no external professional team but relied on its own strength to complete solo and interactive trail operations, achieving safe and one-off-successful running goal.
    Now, with the official operation of Phase I, Xinjiang Kingho is implementing 6 MPa pressurized gasification and domestic methanation pilot projects while making a comprehensive analysis of Phase I so as to better accomplish the state-approved coal deep processing demonstration task.