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#*, wmicm&i-a c & t < @* lx, e@mao^mic#i& i"5 «T##&#'i-5?K7k*Wn#%'(kK# ¥/$ ll ¥Sic*5V'Xi4. =piaic*5 it531^/v^-E^fl.iiLt^nfSM A, #&#)##&#& Ltc0 Lxfs%K###%mi% • Kit *##-#*, ^©fiScS^Sf? StfcfctOXfeSo The Feasibility of Coal Hydrogasification Technology in China Final Report Beijing Research Institute of Coal Chemistry China Coal Research Institute December 1999 Content I Outline of Natural Gas in China 1. Present Status and Development of Natural Gas Resources in China 1.1 Natural Gas Resources and Their Distribution in China...... 1 1.2 Present Pipeline and Conveyance of Natural Gas...... * ...... 8 1.3 Construction and Development Plan for Natural Gas...... * ...... 9 1.4 Importation of Natural Gas and LNG and Future Plans...... 12 1.5 General Conditions Status of Coalbed Methane...... ° *' * 18 2. Present Status of Town Gas for Major Chinese Cities 2.1 General Status of Supply and Demand of Town Gas in Chinese Cities...... 20 2.2 General Status of Supply and Demand of Fuel Gas in Major Chinese Cities...... 22 2.3 Reorganization, Present Status and Plan for Construction ...... 24 of Fuel Gas Facilities in Major Chinese Cities 2.4 Present Status and Related Developing Plan using Natural Gas as Fuel Gas * " * * 33 2.5 Production, Present Status of Supply and Outlook * ...... 36 for Liquid Petroleum Gas (LPG) 3. The Status and Prospect of Coal Exploitation and Utilization in China 3.1 Reserves and Characteristics of Chinese Coal ...... * ...... 49 3.2 Status and Prospect of Coal Utilization ...... * ...... 61 3.3 Main Problems Related to Coal Utilization ...... 70 3.4 Significance of Coal Hydrogasification in China...... 77 4. Evaluation of Mining Areas Suitable for Hydrogasification 4.1 Selecting Mining Areas Suitable for Hydrogasification ...... * ...... 79 4.2 Basic Circumstance of Candidate Mining Area and...... 82 Evaluation of Hydrogasification applicability i II Investigation on Places Selected for Hydrogasification 1. Shanghai 1.1 Reasons for Selecting Shanghai ...... %%5 1.2 Status and Future of Energy Demand and Supply in Shanghai ...... 116 1.3 Status and Future Development of Town Gas in Shanghai * ...... 138 2. Shanxi 2.1 Reasons for Selecting Shanxi...... * ...... 147 2.2 Status and Future of Energy Demand and Supply in Shanxi...... * ...... 149 2.3 Status and Future Development of Town Gas in Shanxi ' ...... 161 3. Shenfua 3.1 Reasons for Selecting Shenfua...... 166 3.2 Status and Future of Energy Demand and Supply in Shenfua...... 168 3.3 Status and Future Development of Town Gas in Shenfua...... 179 4. Xinjiang 4.1 Reasons for Selecting Xinjiang ...... * ...... * 184 4.2 Status and Future of Energy Demand and Supply in Xinjiang ...... 187 4.3 Status and Future Development of Town Gas in Xinjiang ...... 202 5. Problems of Coal Hydrogasification Technology and Possibilities for Application 5.1 Possibilities for Application of Coal Hydrogasification Technology * * ‘'...... 204 5.2 Present Problems and Suggestions for Coal Hydrogasification Technology ...... 205 III Appendix 1. Contract (Chinese)...... • • - • * ...... -...... 208 2. Classification of Chinese Coals ...... 211 ii I Outline of Natural Gas in China 1 Present Status and Development of Natural Gas Resources in China In the past 100 years, great changes in the structure of energy resources have taken place in the world. The changes can be classified into three periods using firewood, coal and petroleum as the primary energy resources. At present, the world is in the transition period with natural gas substituting for petroleum as the most important energy resource. Experts of the international energy resource field have a common opinion that the output and consumption of natural gas will increase at a higher speed in the future. It is predicted that natural gas consumption will exceed coal and petroleum and become the most important energy resource in the world after 2020. Due to abundant natural gas resources in the world, many countries are choosing to increase consumption of natural gas to optimize their energy resources. This is an inevitable trend of the development of the world ’s energy resource economy. However, China is in a period when coal is an important energy resource. Compared with the world energy resource structure, China is about 50 years behind. Therefore, the utilization efficiency of energy resources is rather low and the economic benefit of energy resources is behind the advanced level of the world. For this reason, China urgently needs to optimize its energy resource structure. The output and consumption of primary energy resources can be seen in tablel-l . Table 1-1 Output and Consumption of Primary Energy Resources in China (1997) Coal petroleum Natural gas Hydro power Output composition % 74.3 17.4 2.3 6.0 Consumption composition % 73.5 18.6 2.2 5.7 Source: China Energy Annual Review It is obvious that natural gas accounts for a rather low proportion of output and consumption of energy resources in China. Therefore, natural gas industry must be developed rapidly in order to meet the needs of China national economy. Strengthening the development of natural gas and extending its market can optimize energy resource structure, reduce conveyance pressure on energy resources, protect the environment and improve living standards. 1.1 Natural Gas Resources and Their Distribution in China It is predicted that the maximum possible annual output of natural gas is 110.0-130.0 Gm3 in China, present output is only 22.3 Gm3, therefore, the natural gas industry of - 1 - China has great potential. The natural gas consumption in China is fairly broad which creates favorable conditions to speed up the development of natural gas industry. 1.1.1 Natural Gas Resources The Chinese second evaluation results of oil and gas showed that the total natural gas resources are 38.04 Tm3 distributed intensively among central China, west China and offshore areas, accounting for 30.28%, 28.23% and 21.4% respectively. The resources in highland, mountain and desert areas with very poor geographic conditions are 24.48 Tm3 which accounts for 64% of the total reserve of natural gas. 1.1.2 Proven Natural Gas Deposits • Proven deposits of gas formation gas By the end of 1997, China proved reserves of 1.70Tm3 gas formation gas in 21 basins of which the 15 onshore basins have reserves of 1.40 Tm3 and the 6 offshore basins have reserves of 307.99 Gm3. • Proven deposits of dissolved natural gas By the end of 1997, China proved reserves of 947.72 Gm3dissolved gas in 22 basins of which the 18 onshore basins have reserves of 909.82 Gm3 and the 4 offshore basins have reserve of 37.90 Gm3. ® Distribution and characteristics of proven natural gas reserves From the standpoint of large areas, proven natural gas deposits are concentrated in four large areas including east China, central China, west China and offshore areas. Gas formation gas is concentrated and dissolved natural gas is concentrated in east China. From the standpoint of basin distribution, proven deposits of gas formation gas are concentrated in Sichuna (E9JU ) Basin, Erdousi Basin, Bohai UOj'M #) Bay Basin, Talimu (i§rJMO Basin, Chaidamu Basin, Yingge (3? 'M ) Sea, and southeast Hannan ( # |# ) Basin. Dissolved natural gas is concentrated in Bohai Sea Bay, Songliao (f£lX) Basin and Zhungeer ) Basin. The natural gas reserves of China are mainly based on small and medium scales. By the end of Feb. 1998, 303 gas fields were discovered in China of which the reserves of 13 fields are over 30.0 Gm3, 50 ones are between 5.0 Gm3-30.0 Gm3 and 240 are less than 5.0 Gm3. The small and medium gas fields account for 79.21% of the total. The reserve of large gas fields is 1.48 Tm3 which accounts for 83.47% of total reserves. - 2 - The statistical results of reserve abundance for 50 medium and large gas fields show that there are 9 gas fields with high abundance, 45 with medium abundance and 5 with low abundance. 1.1.3 Recoverable Reserves and Output of Natural Gas The proven recoverable deposits of gas formation gas are 1.05 Tm3. According to area distribution, deposits in eastern area account for 11.41%, the central area for 51.83%, the western area for 16.95%, the southern area for 0.15% and theoffshore area for 19.66%. The amount of extracted natural gas is 252.20 Gm3 in China. There are obvious differences in extraction levels among Sichuan (E9JU) Basin, Bohai (fflj'M) Bay, Talimu Basin, Erdousi , which all have abundant deposits. The extraction level for Sichuan (E9JU ) province is 45.26%, Bohai (##) Bay Basin is 60.96%, Talimu (i§S7fc) Basin is only 5.05% and Erdousi Basin is only 0.27%. Generally, natrral gas resources are located in geographic areas that are very harsh and extraction is very difficult and expensive. The not-yet-utilized reserves of gas formation gas are 805.24 Gm3. The onshore basins with not-yet-utilized deposits over 50.0 Gm3 include Sichuan (@jl|) Basin, Erdousi (W/E^ffr) Basin and Talimu (fgS^fO Basin. The coast basins include Yinggehai (%###) Basin and southeast Hannan (##) Basin. The output of natural gas is increasing gradually in China year by year. In 1997, it was 22.3 Gm3 which ranked the 21st in the world. The ratio of reserves to extraction of gas formation gas is 51/1 that was far higher than other countries producing natural gas in addition to a few countries in Middle East. 1.1.4 General Status of Natural Gas Fields Natural gas resources are concentrated in mainly in the central, western and some offshore areas that have small population and undeveloped industries. These areas can be classified as follows: Eastern area: predicted reserve of 4.4 Tm3 and proven deposit of 224.0 Gm3. Western area: predicted reserve of 10.8 Tm3 and proven deposit of 209.7Gm 3. Central area: predicted reserve of 11.5 Tm3 and proven deposit of 623.3 Gm3. Southern area: — 3 — predicted reserve of 3.3 Tm3 and proven deposit of 0.5 Gm3. Offshore areas (Bohai Sea, Huanghai Sea, East Sea and continental shelf of South Sea): predicted reserve of 8.0 Tm3 and proven deposit of 109.5 Gm3. Distribution and output are shown in Table 1-2 and Table 1-3. Table 1-2 Distribution of Natural Gas Resources in China at the End of 1997 Areas Total reserves Tm3 Proportion of onshore resources % Eastern area 2.99 10.00 Shaanxi-Gansu-Ningxia ——T%) 4.18 13.98 Sichuan-Chongqing (|Z9 j11 — ) 7.36 34.62 Qinghai (##) 1.05 3.51 Xinjiang (Sri!) 9.98 33.38 Others 4.34 14.51 Total 29.90 100.00 Resource: China Gas’99 Table 1-3 Output of Natural Gas in China, 1997 Areas Output Gm3 Proportion of total output % Eastern area 7.06 33.76 Shaanxi-Gansu-Ningxia (BUS-ftS* -T*!!) 0.17 0.81 Sichuan-Chongqing (|Z9jl| — l£f£) 7.51 35.92 Qinghai ( 0.22 1.05 Xinjiang (Srii) 2.02 9.66 Others 3.93 18.79 Total 20.91 100.00 Resource: China Gas’99 1.1.5 The Present Status of Natural Gas tilization in China Gas fuels being used in China include natural gas, LPG, oil refinery dry gas, coke oven gas, as well as producer gas. As regards the national consumption of each gas fuel, please see Table 1-4. - 4 - Ta Me 1-4 China’s Consumption Of Various Gases in 1989- 1997 Year LPG Oil Refinery NG Coke Oven Gas Other Gas Dry Gas (Gm3) (Gm3) (Mt) (Mt) (Gm3) 1989 2.44 2.58 13.70 15.28 5.96 1990 2.54 2.45 13.94 15.81 5.91 1991 2.98 2.77 14.9 1 17.78 6.19 1992 3.57 2.92 14.8 1 16.83 7.95 1993 4.97 3.36 15.57 19.50 1 1.67 1994 5.71 3.78 17.34 21.52 15.25 1995 7.51 4.26 17.74 21.20 74.31 1996 9.3 1 4.49 1 8.49 22.21 70.33 1997 10.14 5.42 19.57 22.29 65.23 Annual Growth 22.59 11.19 5.22 5.54 40.75 rate % Source: National Bureau of Statistics Statistics in Table 1-4 impress us with rapid, sustained increases in the LPG utilization in China, which averaged 22.59 % during the 1989-1997 period. In contrast, natural gas utilization registered the slowest rate of growth —5.22%. As an energy product, natural gas has always been in acute shortages in the country. For decades in the past, natural gas accounted for just around 2% of China’s total energy production and consumption as the domestic natural gas industry was slow in development and unable to meet the domestic demand while import of natural gas was virtually non-existent. During the 1991-1996 period, China’s annual consumption of natural gas rose from 14.91 Gm3 to 18.49 Gm3, up 14.8% or an annual average increase of 3%. For China with a population of more than 1.2 billion, the growth was simply too small. In 1996, each member of the Chinese population consumed an average of 15.4 m3 of natural gas, a fraction (4%) of the corresponding figure for the world (388.5 m3 per capita). Natural gas is mostly consumed mostly in places close to the oil and gas fields where it is produced. In other words, it is an energy product of only regional significance. An account of natural gas utilization in specific fields is as follows: 1.1.5.1 Use of Natural Gas in Different Sectors of The National Economy As regards the proportion accounted for by each and every economy sector to the national consumption of natural gas, please see Table 1-5. - 5 - Table 1-5 Changes in Natural Gas Consumption by Pi fererit Economy Sectors (G m3) 1991 ¥ 1992 ¥ 1994 % 1996 ¥ User Consu To total Consu To total Consu To total Consu To total mption % mption % mption % mption % Primary Industry 0.04 0.23 0.02 0.1 1 Secondary Industry 12.95 80.58 12.53 78.46 13.85 78.87 14.81 80.10 Raw Materials 5.44 33.85 5.00 3 1.31 5.07 28.87 4.81 26.01 Tertiary Industry 0.05 0.31 0.04 0.25 0.11 0.63 0.22 1.19 Power Generation 0.67 4.17 0.82 5.13 0.93 5.30 0.77 4.16 &Heating Domestic Fuel 1.81 1 1.26 2.1 5 13.46 2.00 11.39 1.63 8.82 Other Use 0.59 3.67 0.43 2.69 0.63 3.59 1.04 5.62 Total 16.07 100.00 15.97 100.00 17.56 100.00 18.49 100.00 Source: 99 ’China gas 1. The primary industry accounts for just 0.1-0.2% of the national consumption of natural gas. 2. The secondary industry, which includes the construction sector, is the greatest consumer of natural gas accounting for 80% of China’s total gas consumption. The greatest users within the secondary industry are the chemical, oil and gas extraction and processing. These together accounted for more than 80% of the total consumed by the secondary industry. 3. The tertiary industry consists of the sectors of transport and communication, commerce, warehousing storage, retail sales and catering. Its consumption of natural gas has been limited, standing at 217 Mm3 in 1996 that accounted for 1.2% of the country ’s total consumption. But the demand by the tertiary industry for natural gas has been growing quite fast. This can be testified by the fact that the industry ’s annual consumption grew four times from 1991 to 1996. 4. Some 4-5% of the national consumption of natural gas goes to electric power generation and heating. Some oil and gas fields in China use natural gas to fuel small gas turbines for their own stand-by power sources with generators of 6,000-25,000 kilowatts. Fields in Sichuan Province and Chongqing Municipality provide outgoing supply of natural gas, also to fuel units of 25,000-kilowatt power generators. The Yinggehai YA13-1 Offshore Gas Field in the South China Sea began at the end of 1996 sending natural gas to Hong Kong, the annual supply being 2.9 Gm3, and to the Hainan Island to fuel a unit of two 50,000-kilowatt power generators. China’s has just begun using natural gas to fuel electric power plants, but use of natural gas for such a purpose enjoys growing popularity and therefore is expected to become increasingly hot as a new stimulant for China’s economic growth. As a matter of fact, there have already been plans to use imported LPG for power generation. 5. As Table 1-5 shows, the proportion used by urban and rural residents as domestic fuel to the country ’s total consumption of natural gas was 8.8% for 1996 and 13.4% for 1992. Both figures are 10 to 15 percentage points below the international level - at least 23% worldwide and up to 50% in some countris. Fig. 1-1 is designed to provide an object view of the structure of natural gas consumption in China. - 6 - time in the past, the selling prices of natural gas were below the cost of production, and natural gas producers had to operate at a loss. This state of affairs made it difficult for the enterprises to survive and develop. 3. Low rate of natural gas utilization and extensive management of producing enterprises There is a huge waste of natural gas resources. The marketable portion of natural gas produced by oil and gas fields is no more than 80% while the rate of light hydrocarbon recovery is also low. Problems with China’s natural gas chemical production include limited variety of products while repeated utilization and processing are far from adequate. 1.2 Present Pipelines and Conveyance of Natural Gas By the end of 1996, the total pipeline length for natural gas was 8909Km in China and the conveyance volume was 10.51 Gm3. The length of major conveyance pipelines (diameter > 426mm) was 3700Km, of which 1500Km was in Sichuan province. The present pipelines are as the follows: • Shaanxi-Beijing (-:jk3K) Gas Pipeline This is the first long distance, big diameter and full automation pipeline and is 860Km from Jingbian (£#!&) in Shaanxi (RH) province to Beijing. In the first phase, the annual conveying capacity is 2.0 Gm3 and the maximum conveyance capacity under high pressure is 3.0 Gm3. It was completed on September 10,1997. A Beijing-Tianjin (ItM — ) pipeline with annual conveyance capacity of 300 Mm3 will be built. • Xinjiang (f/rii) Gas Pipeline Three pipelines were completed in Xinjiang (Sill) Autonomous Region in 1996. Shanshan-Urumuqi (## — pipeline is 300Km long and its annual conveyance capacity is 600 Mm3. Tazhong-Lunnan (f§r 4* — ffcSi) pipeline is 3 lOKm long and its annual conveyance capacity is 900 Mm3. Lunnan-Kuerle —@/T #) pipeline is 192.4 Km long and its annual conveyance capacity is 1.2 Gm3. • East Sichuan -Changshou (J11 sfr — jx^f) Gas Pipeline This pipeline which started gas supply in 1998 is 170Km long and its annual conveyance capacity in the early period is 1.5-2.0 Gm3. • East China Sea Pinghu-Shanghai ( SSVS ~ JL'S) Gas Pipeline This pipeline completed at the end of 1998 is 385km long and its annual gas supply is - 8 - 500 Mm3. Furthermore, some regional gas pipelines are also being built such as the Xianyang- Baoji OaKPI=| — pipeline in Shaanxi (RW) Province. This pipeline crosses Xianyang Ol£P0) , Xingping (tn ^F) , Wugong , Fufeng (^M) , Mei County (##) , Qishan (#lll) and Baoji ( City. It is 145.1km long, with designed pressure of 4.0Mpa, pipe diameter of 426mm and material type of X52. According to the requirements of local government, it will start gas supply before October, 1999. 1.3 Construction and Development Plan of Natural Gas Pipelines in China At present, the development of natural gas is mainly concentrated in four large areas including Sichuan (E9Jl| ) Basin, Shaanxi-Gansu-Ningxia (RM-'H'i'-f M) Basin, Talimu (fllSvfc) Basin and west area of South China Sea. However, major consumption markets are concentrated in the developed coastal areas in southeast China. The best way of solving the sharp difference between demand and supply is to strengthen pipeline construction and realize the strategic plan of conveying natural gas from west to the east. Now, the project of conveying west natural gas to the east has been regarded as a major one of national economy development by China National Development and Planning Committee. Long gas pipelines are also regarded as major infrastructure and a three-stage plan for them has been created. The first stage is building Sichuan-Wuhan-Shanghai (0jl|— — _t#|) natural gas pipeline and Xian-Xianyang (M$ —) major pipeline, which are 2787 km and with annual gas supply of 4.0 Gm3 in 2002. The second stage is building Lanzhou-Xian (— W $ ) pipeline to form the combining supply net for three large areas including Chaidamu () Basin, Shan-Gan-Ning (@eW —t5E) Basin and Sichuan-Chongqing ([ZS Jl| — MR) Basin to Yangtze River Delta with a total length of 1507 km. The third stage is conveying the natural gas of Talimu (i§S7fc) Basin to the east which will need 225 8Km pipeline to be built. The predicted annual gas supply to the lower reaches of Yangtze River will amount to 19.0 Gm3 in 2010. Thus a major pipeline for conveying gas from west to the east can be formed. The main technical parameters for pipeline construction plans in different stage are shown in Table 1-6. - 9 - Table 1-6 Technical Parameters for Pipeline Construction Plans in Different Stages Stage Start and end of pipeline Length, Diameter, Station km mm numbers The 1st stage Zhong county-Wuhan ( Hr — ) 703 711 3 Wuhan-Xinyang fitPB) 180 610 2 Jingbian-Xian (#iii& — 460 660 3 1444 914 1(12) Xian-Shanghai (J_LiW) The 2nd Sebei-Lanzhou ('/Sjb-irT'H) 997 711 5 stage Lanzhou-Xian (irJ'H — {§;&:) 510 914 1(3) The 3rd Lunnan-Lanzhou (— ilj'H) 2258 914 6(13) stage Source: China Gas’99 -10- JL. r of Gas F ig.1- China's Pipeline 2 Distribution Natural 500kn S X \ ------— — — 1.4 Importation of Natural Gas and LNG and Future Plans In the 1990s ’, with the increase of energy demand and development of Chinese economy, the structural problem of energy resources has become more serious than ever. The situation of coal as the major primary energy resource restricts the development of Chinese economy. According to the Ninth Five-year Plan and prospect target in 2010, it is an inevitable trend to increase the demand of energy resources due to the development of national economy. If present structure of energy resources persists, the consumption of energy resources can not burden the pressure of society and environment, and the state long-term developmebt strategy will be restricted. Therefore, it is a very urgent problem to improve the structure of energy resources. Natural gas only accounts for 2% of primary energy resources in China, which is much less than the world average level of 23%. Although the prospective reserve of natural gas amounts to 38 Tm3, it can not meet the energy resource consumption of national economy development. Therefore, China should make full use of domestic and foreign resources and markets, strengthen the study of importing natural gas and create plans to import natural gas in order to meet domestic demand, improve the environment and adjust the structure of energy resources. Considering practical conditions in China, an important way meeting the demand for natural gas is, at first, to strengthen the development of domestic natural gas including onshore and offshore natural gas reserves as well as coalbed methane. Secondly, to import natural gas actively and focus on importing pipeline natural gas from neighbor countries, one part being, to import a part of liquid natural gas (LNG) so as to complement scarce supplies of domestic natural gas. 1.4.1 Forecasts of the Demand and Supply of Natural Gas 1.4.1.1 Forecast of the Demand of Natural Gas China’s experts have predicted the demand of natural gas by the Medees model and category analysis. The national economic activities shall be classified as belonging to the following five areas: agriculture; industry; transport, communication and posts and telecommunications; service industry; and civilian application. The forecasting of the demand for natural gas in different periods shall be done under two schemes, the high scheme and the low scheme, in which 1990 is set as the bench mark year and 2000, 2010 and 2020, as the target years. The macro-economic parameters are based on the assumed data of Chinese Academy of Engineering. Table 1-7 and Fig. 1-3 show the results of the forecasting. — 12 — Table 1-7 Demand for Natural Gas by Different Areas (Gm3) 1990 ¥ 2000 ¥ 2010 ¥ 2020 ¥ Actual Low High Low High Low High demand National 15.25 31.50 42. 20 97. 70 125.30 231. 30 309.10 Agriculture 0. 00 0. 25 0. 30 1. 00 2. 20 3. 00 7. 00 Industry 13. 08 18. 66 25. 44 41. 17 47. 96 79. 60 117.00 Services 0. 12 5. 64 8. 74 22. 88 32. 40 66. 50 89. 60 Trans.Commu.& Tel. 0. 19 0. 25 0. 32 0. 50 1. 96 2. 20 3. 50 Civilian use 1. 86 6. 70 7. 40 32. 15 40. 78 80. 00 92. 00 350 i 309.1 300 - 250 - 200 - 150 - 100 - 1990 2000 2010 2020 Fig. 1-3 Forecast of the National Demand for Natural Gas (Gm3) The domestic demand for natural gas is expected to grow at a much faster pace than that for coal and oil. The domestic demand for natural gas should have grown to 31.5- 42.2 Gm3 by 2000, 97.7-125.3 Gm3 by 2010, and 231.3-309.1 Gm3 by 2020. 1.4.1.2 Forecast of the Domestic Production According to forecasts by experts for the forthcoming two decades, the annual production of natural gas should have grown to 25.0-30.0 Gm3 by 2000, 60.0-74.0 Gm3 by 2010, and 100.0-120.0 Gm3 by 2020. - 13 - 140 t 120 120 100 80 60 40 20 0 1990 2000 2010 2020 Fig. 1-4 Forecast of China’s Domestic Production of Natural Gas (Gm3) 1.4.1.3 The Gaps Between Supply and Demand of Natural Gas — 14 — 350 . 300 - 309.1 250 - Demand 200 - 125.3 150 - 100 - 15.25 Output 1990 2000 2010 2020 (Gm3) Fig. 1 -6 Gap Between Supply and Demand of Natural Gas (High Scheme) 1.4.2 Resource Conditions of Natural Gas Importation In the past several years, consistent with the strategy of “Making full use of domestic and foreign resources ” as stated by the State Council, Petroleum Group has been cooperated with foreign companies to study the feasibility of importing natural gas from neighbor countries and identified the distribution and deposits of natural gas resources in Russia, Kazakstan, Ozbekstan and Turkomanstan. The possibility of supplying 20.0 Gm3 natural gas from east Russia to China, 20.0-30.0 Gm3 natural gas from west Sibelia area in Russia to China and 30.0 Gm3 natural gas from central Asian countries to China has been verified. The resource conditions of importing natural gas from east can be seen from Table 1-8 and Table 1-9. Table 1-8 Resource Conditions of Importing Natural Gas from East Areas Resource Proven recoverable Proven deposit Predicted output Supply Tm3 Tm3 Gm3 Gm3/a GmVa East General conditions 44.57 3 Sibelia of Resource sites 870.0 >15.0 10.0 Russian Supply sites added 750.0 >15.0 10.0 Sahalin of General conditions 3 0.58 Russian Supply sites 434.2 5.5-11.5 <10.0 Source: China Gas’99 -15- Table 1-9 Resource Conditions for Importing Natural Gas from the West Areas Resource Proven Recoverable Predicted output Supply Tm3 Tm3 Gm3/a Gm3/a West Siberia General conditions 97.82 38.51 of Russian Supply sites 1.2(proven) 22.0-32.0 20.0-30.0 Central Kazakstan 10.54 1.84 30.0 10.0-15.0 Asia Ozbekestan 6.3 2 56.0 5.0 Turkomastan 13.91 2.8 >60.0 10.0-15.0 Source: China Gas’99 1.4.3 Analysis of Plan for Supplying Natural Gas According to initial plans, regions south of the Yangtze River will concentrate on importing LNG and regions north of the Yangtze River, on importing natural gas from Central Asia and Russia. Supplies of natural gas will be transported through long distance pipelines from Central Asia and Russia to China. As table 1-10 shows, four pipelines are being expected for the purpose, which are internationally known as the “Northeast Asia Network of Natural Gas Pipelines.” The northeast Asia natural gas network will be an international energy project of major importance for the next century, in that its construction and completion will exert an important, far-reaching influence not only on the energy supply, economic development and environmental improvement of the countries involved, but also on their bilateral relations and political developments. So far in the 1990s China, Russia, Japan, Turkomastan and the Republic of Korea (ROK) have repeatedly held consultations on the project and all have demonstrated a positive approach. Far back in April 1994, the project for China to import Russian natural gas came to be subject to diplomatic discussions between the two countries. During President Yeltsin’s visit to China in 1997, the two countries signed a memorandum on supply of natural gas from Russia’s Kovkyiskin Gas Field to China. Under the memorandum, the gas field shall annually supply China with 20 billion m3 over a period of 30 years. The cost of the project shall exceed US$ 10 billion. Table 0 The Northeast Asia Network of Natural Gas Pipelines From To Though Lenth Cost Capacity km GUS$ G m3 A Ashkahabad Kita Urumqi, Lanzhou, Xi’an, 7475 22.55 20.0 Kyusyu Lianyungang, Kiura B Yakutsk Wakkanai Ayan,Sakhalin 2950 9.95 20.0 C Irkutsk Kita Beijing, Liha, Kiura 4870 14.41 10.0 Kyusyu D Irkutsk Kita Beijing, Shenyang, 4635 13.28 10.0 Kyusyu Pyongyang,Seoul, Pusan - 16 - Countries in Northeast Asia are short of resources of quality energy. These countries vary in development degree- Japan is economically and technologically developed and ROK is a newly industrialized country whereas China, the Far East part of Russia, Mongolia and the Democratic People ’s republic of Korea are striving for development. Meanwhile, Siberia and the Far East region of Russia, endowed with extremely rich oil and gas resources, could be a potential powerhouse for all countries in Northeast Asia. The European part of Russia serves as the country ’s economic center. And in comparison, Siberia and the Far East region are remote and outlying, hence their relative backwardness in economic development and difficult access to communications. Russia hopes strongly that development of energy resources on Siberia and the Far East region would boost the economic development there. Russia, as matter of fact, has for a long time cherished the dream of cooperating with Northeast Asian countries in energy development, with China and Japan in particular. Russia, China, Japan and ROK share the hope to set up a Northeast Asia energy community to help balance the interests of the parties involved the coordinate their actions in order to ensure smooth progress of their cooperation in energy development. 1.4.4 Importation of LNG The market demand of natural gas can be met by importing LNG in China. It is suitable for south China and east coastal areas, which have huge demand and are far away from major gas pipelines. According to market demand, the total volume of importation is over 10.0 Gm3 which concentrates on coast areas to the south of Yangtze River in 2010. Regarding to importation of LNG, the emphasis is making market investigation, developing technical demonstration and making plans to select suitable sites in the Ninth Five-year Plan period. The results of investigation showed that trade amount of LNG is 82.32 Mt in the world and the main exporting countries or areas include Abuzabi, Australia, Indonesia, Malaysia, Brunei and Alaska, etc. The exporting capacity of these countries and areas is over 100 Mt (see Table 1-11). - 17 - Table 1-11 Main Countries or Areas of LNG Supply Countries or areas LNG MVa Main countries supplied Rest or capacity added Mt/a Abu Dhabi 5.1 Japan, South Korea 0.005 Alaska 1.4-7.0 Japan 3.0 Algeria 15.0-31.0 Europe, U.S.A, Japan Australia 2.0-6.9 Japan 5.0 Brunei 5.5-7.0 Japan, South Korea 0.8-1.5 Indonesia 30.0 Japan, South Korea 2.0-4.0 Malaysia 16.5 Japan, South Korea, Taiwan 1.5 Oman 6.0(2000 year) South Korea 3.0 Qatar 6.0 Japan Total 87.5-115.0 Source: China Gas’99 Although there are many resource sites to from which to choose, China should consider political and economic conditions, reliability of resources, conditions of economy and business, conveying distance in order to make the best choice and reduce investment risk. The investment in projects to import LNG mainly involves the building of receiving stations (receiving terminals). Based on estimates, the operating cost of receiving stations accounts for 50%. Therefore, more attention should be paid regarding selection of LNG receiving stations and the optimization of design so as to decrease total cost and price as soon as possible. LNG imported together with domestic natural gas and near offshore natural gas can form complements of resources and make supply ways diversify. Thus, a stable and safe supply of natural gas to south China and developed coast areas in east China can be ensured. 1.5 General Conditions of Coalbed Methane (CBM) Coalbed methane (CBM), a kind of non-conventional natural gas, is deposited in the coalbed and mixed with coal. China is abundant in CBM resources, with a total amount above 2000m depth of 30-35 trillion m3. The development of CBM can help supply more clean energy, improve the safety of coal mines and protect the global environment. The main purpose of CBM drainage by underground drilling is to ensure the safety of - 18 - coal mines. Now this technology is rather mature. By 1996, there were 147 mines that established drainage systems in China, with annual drained gas of 630 Mm3 and annual utilized gas, mainly for residential use, of about 400Mm3. In order to strengthen the development of CBM in China, State Council authorized the establishment of some companies to be engaged in the development and exploitation of CBM. The laws and rules for development and exploitation of CBM are being studied. In the Ninth Five-year plan period, the technology for the exploitation and development of CBM should be strengthened and a demonstration plant for methane preparation should be constructed in coal fields which are abundant in CBM resources. The utilization and development of coal bed methane on certain extent will partly exsit in 2010. The development and utilization of CBM will complement the use of natural gas. Especially, in some large coal mine areas, CBM will be the main fuel of industry and households. - 19 - 2. Present Status of Town Gas (Fuel Gas) for Major Chinese Cities 2.1 General Status of Supply and Demand of Town Gas in Chinese Cities In the past ten years, due to the rapid development of the Chinese economy, living standards and quality of life for urban and suburb people have been improved greatly. Fuel gases and electricity instead of conventional firewood have rapidly become important domestic fuels. The ratio of gas utilization in urban areas reached a high level in 1997 (see Table 2-1), and the number of households using fuel gas is increasing gradually. At present, the population using fuel gas is over 150M, and the number will exceed 200M by the end of this century. The current sources of domestic fuel gas include coal gas, liquid petroleum gas and natural gas. According to 1995 statistics for 633 cities, there are 162 cities using coal gas, 589 cities using LPG (accounting for 93%) and 55 cities using natural gas. The proportion of LPG is over 60% among three kinds of gases. The number of households using LPG can not be changed greatly in the following ten years, which is determined by conditions of the economy and resources in China. The complicated process, huge investment, inferior profit and serious pollution of the environment restrict the development of coal gas. Meanwhile, the supply and extraction of natural gas can not match increasing demand and can not substitute for LPG on a large scale in the near future. Therefore, China has a good opportunity to develop LPG over a very long time. With the adjustment of the structure of energy resources, the improvement of environment protection level and the development of economy, the consumption of natural gas and LNG as domestic fuels will increase gradually during the early years in the next century. According to the plan, the structure of fuel gases will develop along the direction of using natural gas mostly in urban areas after 2010. The ratio of gas utilization in urban areas by region and gas supply of different provinces and cities is shown in Table2-1 and Table 2-2. - 20 - Table 2-1 Ratio of Gas Utilization in Urban Areas in Different Provinces and Cities No. Name Ratio No. Name Ratio 1 Zhejiang ( MM) 94.90 17 Sichuan GZ9JN) 71.16 2 Shanghai (LM) 94.80 18 Yunnan ) 68.95 3 Beijing UbjjC) 94.02 19 Shanxi ( lUH ) 66.57 4 Tianjin (^#) 93.10 20 Heilongjiang (S^E'vT) 66.32 5 Guangdong (MS ) 92.05 21 Hunan (%EW) 65.70 6 Hannan (WW) 88.53 22 Anhui ($:!fc) 65.06 7 Xinjiang (UrIS) 88.44 23 Jilin ( pq#) 61.84 8 Jiangsu (MS) 87.79 24 Jiangxi (M(5 ) 57.30 9 Liaoning (IX "r ) 86.63 25 Tibet () 56.27 10 Hebei (#jb) 85.93 26 Shaanxi (|#@) 54.75 11 Guangxi (M@) 83.20 27 Henan (MW) 52.06 12 Shandong (lllS) 80.29 28 Inner Mongolia ( ) 51.68 13 Fujian ( 78.54 29 Qinghai (##) 47.98 14 Hubei ($Ub) 73.39 30 Guizhou (Hj'H) 43.29 15 Ningxia ( MX) 71.84 31 Gansu (##) 39.84 16 Chongqing (SM) 71.16 32 Source: ’97 China Energy Statistical Yearbook Table 2-2 Fuel Gas Supply of Different Provinces and Cities , 1997 Name of area Population LPG, ton coal gas NG Ratio of M 1997 1996 Mm3 Mm3 urban % Beijing (jbjjO 12.40 177483 177492 752.21 165.65 94.02 Tianjin (7s#) 9.53 66743 67031 211.90 132.53 93.10 Hebei (Wb) 65.25 168434 143928 415.73 27.68 85.93 Shanxi (ill®) 31.41 20756 17709 693.83 15.50 66.57 Inner Mongolia ( F*9 ) 23.26 35144 32283 69.76 - — 51.68 Liaoning OXM) 41.38 354517 334455 836.63 333.55 86.63 Jilin (W$0 26.28 155989 111372 162.99 68.56 61.84 Heilongjiang (H^M) 37.51 247343 245327 187.77 31.26 66.32 Shanghai (hM) 14.57 167647 161887 1936.19 — 94.80 Jiangsu (MS) 71.48 468106 551084 2748.53 — 87.79 Zhejiang (MM) 44.35 517437 502379 263.86 - 94.90 Anhui (fScSD 61.27 310556 229134 321.86 0.56 65.06 Fujian (?m#) 32.82 250704 2000274 42.58 - 78.54 Jiangxi (Mffi) 41.50 58642 37784 376.1 1 — 57.30 Shandong (lllS) 87.85 214789 189587 378.91 780.12 80.29 - 21 - Name of area Population LPG, ton coal gas NG Ratio of M 1997 1996 Mm3 Mm3 urban % Henan (MS) 92.43 106909 94491 551.24 488.49 52.06 Hubei OWfc) 58.73 219689 210396 230.62 -- 73.39 Hunan (#S) 64.65 149902 134656 948.60 -- 65.70 Guangdong (f'S) 70.51 1434092 134656 948.60 -- 65.70 Guangxi (r~@) 46.33 163999 133666 93.89 2.05 92.05 Hannan (#S) 7.43 71548 34734 6.34 -- 88.53 Chongqing (£f£) 30.42 25226 -- -- 906.64 71.16 Sichuan (E9JU) 84.30 51726 67693(2) 1104.63 3617.09 68.95 Guizhou (ffU'I'l) 36.06 20715 17415 43.40 3.72 43.29 Yunnan (%;S ) 40.94 44771 35773 126.37 -- 68.42 2.48 960 Tibet (@E) 1075 - -- 56.27 Shaanxi(IBffi) 35.70 53406 49807 77.45 0.74 54.75 Gansu (##) 24.94 30953 733693 56.41 — 39.84 Qinghai (W'M ) 4.96 9778 25812 0.24 31.37 47.98 Ningxia OrjE) 5.30 19730 17762 27.83 -- 71.84 Xinjiang (Srll) 17.18 168769 159236 -- 24.50 88.44 Total 1236.26 5786023 5758374 12689.44 6630.01 75.51 2*2 General Status of Supply and Demand of Fuel Gas in Major Chinese Cities With the rapid development of Chinese modem construction, fuel gas industry is also developing rapidly. By the end of 1998, there were 108 enterprises producing fuel gases and many companies selling fuel gases directly. Fuel gases include coal gas, liquid petroleum gas (LPG) and natural gas (NG), which are used in different fields of industry and business. The statistical information for fuel gas in some cities (central cities) can be seen in Table 2-3. -22- Table 2-3 Statistics of Fuel Gas Supply by Item in Major Chinese Cities (1998 ) N City Gas Total volume Total Volume of Volume of Other Pipeline Storing Number of Households Industrial Other Length 0. source purchased volume sold households industry volume Number of capacity of gas Gas storage Consumers consumers consumers (Km ) holders (Mm3) (Mm3) (Mm3) (Mm3) (Mm3) (103m3) 1 Beijing CG 813.55 662.42 260.55 99.94 301.93 531307 528581 127 2599 1405.61 900 UbisO LPG 1603.69 1467.92 1362.27 6.13 99.52 1045254 1021002 1101 23131 176 180000 620533 NG 379.69 326.18 92.44 28.58 205.16 505848 505164 30 4254 1499 160 2 Tianjin CG 157.80 136.13 7.52 14.15 265220 264753 17 450 1477 736.4 9 (7;#) NG 269.83 292.25 263.75 22.00 6.50 391970 387688 348 3954 104 82440 344695 3 Taiyuan CG 213.76 196.93 153.75 15.92 27.27 336340 335278 18 1044 1230.59 367 7 (til) LPG 21.62 23.26 20.62 2.42 0.22 39677 38220 362 1095 9000 51542 4 Hohhot SG 26.12 23.66 0.79 1.67 69209 69060 79 70 308 150 3 5 ShenYang CG 38.24 16.80 18.48 2.96 43823 43772 43 58 90 108 2 (ifcPfl) LPG 153.05 171.73 110.01 227510 220485 7025 7 50000 168158 NG 86.31 76.65 0.84 8.82 693101 692263 32 806 1179.2 340 3 6 Harbin CG 161.01 101.75 9.99 43.87 461269 458977 23 2269 1468 870 1 (l£#S) LPG 219.66 76.13 152502 152102 400 5 23000 119011 NG 6.45 5.52 1.26 4.13 0.13 10425 10410 4 101 71.3 123 3 7 Shanghai CG 1667.95 1042.50 258.53 366.92 2394355 2638031 1251 25073 6295 3154 19 (±S) LPG 967.44 954.62 716.21 0.53 237.88 784937 775092 244 9601 69.5 102810 1069524 8 Nanjing CG 103.92 123.42 90.29 6.73 26.41 245360 244750 41 569 458.9 549 5 (#£) LPG 698.21 559.20 463.12 0.60 6.24 391021 376311 84 14710 13.77 50000 479638 9 HangZhou CG 14.02 46.98 34.66 6.80 5.22 114317 114175 3 139 219 280 4 (#fM) LPG 389.26 398.47 391.13 6.41 0.93 238460 235939 2235 286 40000 260400 10 ChongQing NG 48.34 47.07 12.78 32.49 1.80 522376 515969 83 6324 2208 200 (£^) 11 Xian CG 21.13 23.21 20.37 2.84 69948 69920 1 28 179.07 110 3 (@^) LPG 92.55 15.03 121933 121933 12 Urumq LPG 382.22 375.15 190.67 276835 264120 12715 38340 434830 (A#^) 13 Guangzhou CG 80.34 61.67 14.62 4.05 337386 336005 143 1238 1279 310 4 (r#n LPG 534.77 428.37 364.05 62.46 1.86 178487 176989 1498 50000 217331 2.3 Reorganization, Present Status and Plan for Construction of Fuel Gas Facilities in Major Chinese Cities Making a comprehensive survey of present status and development of the fuel gas industry, it is obvious that many central cities will become international centers of economy, finance and trade in the early and middle years next century. Therefore, these large cities will have huge demands for energy resources much more than that of small and medium cities. This will bring serious pressure to economic development and the building of infrastructure (including fuel gas facilities). Accordingly, these areas should optimize the structure of primary energy resources (coal, petroleum, natural gas and nuclear fuel) and construct facilities for electricity, fuel gas and thermal energy in order to realize reasonable distribution, form complete sets of facilities and ensure effective running. These areas include north China with Beijing and Tianjin as centers, Yangtze River Delta with Shanghai as the center and Pearl River Delta with Guangzhou (Guangdong Province) as the center, which are developed areas with an obvious shortage of energy resources and considerable fuel gas consumption in China. A series of complete facilities are being or will certainly be built on the basis of the present fuel gas facilities in these areas. 2.3.1 North China With Beijing (Tianjin) as the Center As the capital of China, fuel gases are supplied from coal gas (Beijing Coking Plant, Coking Plant of Capital Steel-iron Company), LPG and natural gas in Beijing. Developing city natural gas is an important measure to help Beijing become an international municipal in the future. At present, the rate of households gas utilization is up to 94% in Beijing. According to the plan approved by State Planning Committee, the annual volumes were 300 Mm3, 500 Mm3 and 700 Mm3 in 1998-2000 period. Therefore, schedules for related fuel gas facilities should be arranged according to volumes needed. The output of coal gas can not be increased any more. At the same time, natural gas with high quality from Shaanxi-Gansu-Ningxia (——T 3L) to Beijing (:1b SO must be received on time. 10 years history of conveying petroleum gas from north China oil fields to Beijing promoted the development of natural gas conveyance and distribution system in Beijing and established a solid base for using natural gas on a large scale in the future. Meanwhile, the suggestion of constructing gas tanks aiming at reason and accident adjustments has been put forward. Natural gas of north China is conveyed to two receiving stations from Yongqing (tR'/fT) in Hebei (Mdb) province, along two long pipelines of 70Km with diameters of D200 and D500 diameter and a capacity of -24 - 0.4 Mm3/d. A pipeline network formed by high-pressure, medium pressure and low pressure pipelines is 1200km. The major high-pressure pipeline which is 70Km long has been completed. 4 tanks of 5000m3 and 2 tanks of 10000m3 are manner of adjusting to household natural gas demand in daily lives. Approved by Central Government, gas fields located in the center of Shan-Gan-Ning (—f %)area were developed in April,1996. After the discovery of gas fields in Shan-Gan-Ning Basin, Changqing Oil Exploring Bureau explored and found a 5000km2 area with a natural gas reserve over 230.0Gm3. Jingbian ( ) Natural Gas Cleaning and Processing Plant has a designated ability of 3.0Gm3/a. According to the plan, the capacity was l.OGm3 that was conveyed to Beijig () , Xian (jSj 5c) and Yinchuan (#UH ) in July, 1997. The long gas pipeline was linked up and natural gas was conveyed to Beijing from Shan-Gan-Ning basin on September 10,1997. The gas pipeline between Shan-Gan-Ning ( HM-flf-f M) gas field and Beijing (it%() starts from Natural gas cleaning plant that is 16 Km away from the east of Jingbian () county in Shaanxi () province and ends at the Yamenkou (#H O ) station in Shijingshan (^#ll|) district of Beijing (jb JR) . This pipeline with 700km air line distance and 897km real distance crosses Shaanxi (R@) , Shanxi (ill@) , Hebei (Mdfc) and Beijing (jbiiO . The part in Shaanxi () province is 304Kms, the part in Shanxi (ill @ ) province is 369Km, the part in Hebei (Mdb) province is 182Kms and the part in Beijing (it S) is 42Km, the diameter is 660mm and its material type is X-60. State Planning Committee pointed out in the feasibility investigation report of the project of conveying natural gas from Shan-Gan-Ning to Beijing using loan of Asian Bank, a pipeline net system of natural gas on a 1.0Gm3/a scale should be constructed. The first investment was 2.92 GYuan including 70.87M$ loan from Asian Bank. The specific projects are as follows. A. A project of pipeline system project using 67.6km of high pressure pipeline, 143.2km of medium pressure pipeline, one natural gas receiving station and 4 stations for adjusting pressure. B. Facilities for storage and adjustment using 2 new tanks, one tank rebuilt and 10 high pressure tanks of 10000m3. - 25 - C. Automatic system of conveyance and control net. With the continuous increment of fuel gas demand in Beijing, there should be a long term plan for constructing underground tanks sufficient to match the scale of volume supplied. According to the requirements of the“General Construction Plan of Beijing ”, the natural gas volume conveyed to Beijing will be over 3.0GmVa by means of increasing natural gas volume from Shan-Gan-Ning(|$® —t3E) gas field and other gas fields or by importing natural gas from neighbor countries. The fuel gases are composed of coal gas and LPG in Tianjin. The ratio using gas of households is over 93%. The length of pipelines is 4438 Km including 360 km of special high pressure pipeline. Coal gas is supplied by the first gas plant and the second gas plant of Tianjin. The third gas plant of Tianjin, which will produce coal gas by carbonization of coal is being built using the loan of Asia Bank in 1996. Most of gas produced by this plant will be supplied to industrial consumers and the rest to households. According to the plan, the project will be completed and put into operation in 2000. Meanwhile, many complete sets of infrastructure for of natural gas should be built because the volume will increas by 100 Mm3 in 1999, 200 Mm3 in 2000 and 400 Mm3 in 2001. 2.3.2 Yangtze River Delta with Shanghai as the Center Surrounding the related infrastructure, construction and plan for the adjustment of fuel gas structure, the Shanghai government thinks that expansion of the development and utilization of natural gas is one of important measures during the course of optimizing energy resource structure. At present, the developing project of Pinghu( Jf 'M) lake oil gas of East Sea will be completed in the near future and convey gas to Shanghai City at the end of 1999. At the same time, the feasibility of two projects including importing liquid natural gas (LNG) and conveying natural gas from west China to east China is being investigated. (1) The developing project of Pinghu oil gas field Pinghu oil gas field is the first complex type one which mainly reserves natural gas discovered in East China Sea. The field area is 240 km2. The area developed is 20 km2 in the first phase and the proven deposits includes 10.8 Gm3 natural gas, 1.77 Mt condensate oil and 10.78 Mt light oil. The project composed of two parts began construction in September, 1995. One project includes well drilling, a comprehensive platform of extracting and -26- processing oil and gas, 13 wells producing oil and gas, two submarine pipelines conveying oil, Processing plant of natural gas in New Nanhui (W'vC) port and a transfer station of crude oil in Daishan (ffilJLl) in Zhejing ($f£C) Province. The total investment is 5.05 GYuan including 466 M$. Shanghai Petroleum and Natural Gas Company is responsible for operation and construction of the projects. The planning term of gas supply is 15 years. The natural gas produced was supplied to households living in Shanghai Pudong New Area at the first half of 1999. The test period was 3 months and the volume supplied was 0.4 Mm3/d, after this period, the volume supplied will be 0.8 MmVd in the first year, 1.0 Mm3/d in the next year and 1.2Mm3/d in the third year. The other project includes the first station in New port, 94km long conveying pipeline, 125km high pressure pipeline in urban areas, 18 medium or high pressure stations, The total investment is 1.41 GYuan including 59.0 M$. Shanghai Conveyance and Distribution Company of Shanghai Gas Selling Group is responsible for the construction, production and management. (2) The importation of liquid natural gas (LNG) Shanghai Planning Committee and China National Offshore Petroleum Corporation are making the investigation of feasibility of importing LNG project. The important LNG resources will be selected from the following countries such as Malaysia, Australia, Qatar, Yemen, Oman and Indonesia. The capacity of the first period project will be 3.0Mt/a, the capacity of the second period project will be 6.0Mt/a. According to the arrangement of LNG importation in Yangtze River Delta, the project will be developed by Shanghai and Zhejiang Province where the receiving station will be built and the sources of natural gas will be shared in by these two places. (3) Conveying natural gas from west China to east China The total volume of natural resources amounts to 38 Tm3, of which 60%distributes in west area. The results of primary investigation show that there are considerable proven deposits in Talimu Basin, Zhuiger (#£U/K) Basin, Tulufan- Hami OthSS-DqS) Basin, Erdousi ) Basin and Sichuan (H9Jl|) Basin in west China, but the development and utilization of natural gas is very limited in these basins. At present, the volume extracted is 20.0 Gm3t/a that can be expanded to 100 Gm3/a in the future. The output is 17.0 Gm3/a in Sichuan (|Z9Jl|) Province, 3.0-5.0 Gm3/a in Shan-Gan-Ning (R — Vi~tO Basin, 3.0-5.0 Gm3/a in Qinghai ( ## ) Province, 11.0Gm3/a in Xinjiang (Sr 11) Autonomous Region. But -27- Shan-Gan-Ning ( H®-f f- f 1) and Xinjiang ( §T IS ) only consume 400Mm3/a and 2.1 Gm3/a respectively. Therefore, China National Petroleum Corporation has been investigating the feasibility of pipeline construction conveying natural gas from west to east. According to the plan, natural gas will be conveyed to east coastal areas from the west through long distance pipeline and Shanghai is the last station of the project This gas pipeline with the supply of 10.0-15.0 Gm3/a natural gas is 4600km. This pipeline will be constructed step by step, the part of it from Sichuan to Shanghai will be started in 1999 and reach Shanghai in 2002. As an important consumer, Shanghai is very much concerned about the reliability, stability of gas sources and the price of gas. Now, Shanghai is very busy to make the plan of natural gas utilization. The project of conveying natural gas from west to east is one of important infrastructures in China. (4) The consumption of natural gas Natural gas consumed by industries such as electricity, fuel gas and chemical engineering accounts for 30-40%, 20% and 40% respectively. Shanghai Jinshan Power Plant is the first natural gas power plant (900Mw). There are other power plants such as Caojing Power Plant, Minhang Power Plant and Ningbo Power Plant being planned to build. Natural gas will be mixed with oven gas in the mixing facilities in Shanghai Coking Limited Company and Pudong Gas Plant, then the obtained gas will conveyed to Puxi pipeline net. The consumers of chemical engineering are Wujing Chemical Engineering Area and Shanghai Chemistry Industrial Area. In November, 1998, China Petroleum Selling Company, Shanghai Coking Limited Company, Wujing Chemical Plant and Shanghai Chemistry Industry Development Company signed a intention agreement of natural gas supply and demand. So, natural gas will be major raw materials and energy resource gradually. 2=3,3 Pearl River Delta with Guangdong Province as the Center China is the third market of LPG in the world at present. According to proximate estimate, the amount of LPG consumed was 11.6 Mt in 1998 which increased by 15% compared with 10.1 Mt in 1997. As a developing country with large population, the potentialities of LPG markets, especially the household markets are still very expansive in China. On the conditions of not rising in price, keeping lower or acceptable price, LPG markets will develop as a high speed in China in the near future years. It is predicted that the amount consumed will increase by 6-12% in 1997-2005 period, i.e., the amount consumed will increase from 10.1 Mt in 1997 to 19.0-25.0 Mt in 2005. -28- Recently, the importing amount of LPG increased obviously in south China , so LPG of households became the focus of consumption. Being the top province of LPG importation, the amount consumed by households accounted for 90% of the total that was much more than the average level of 73% in China. In fact, most of LPG imported was used as fuel of households in urban and suburb areas. Although the areas importing LPG is moving from south to north, Guangdong ( $) Province was still the importation center of LPG in China last year. In spite of the 5% decrease from 74% of total amount in 1997 to 69% in 1998, the amount of LPG imported kept the increment of 25% in Guangdong ( % ) Province. For example, Zhuhai () and Shenzhen (## ) imported 2.44 Mt LPG which accounted for 51% of the total in China. In 1997, the amount consumed of LPG was 2.94 Mt of which 90% was imported. The amount consumed by households accounted for 90% of the total consumed that is 2.64 Mt, i.e., LPG imported was used as fuel of households completely. Only 0.3 Mt LPG that accounted for 10% of the total consumed was used to commerce and industry. Jiangsu (tfS) Province, Zhejiang (#CC) Province and Fujian (##) Province are new provinces importing LPG. A 3 X 104t freezing tank of Huaxing Company began to run in Fujian Province in December, 1998. Amanke Company built a 3.1 X 104t freezing tank in November, 1997 in Jiangsu C'ZLS) Province. Two freezing tanks of 3.1 X 104t and 5 X 104t were built in Zhangjiagang of Jiangsu (£F5>) and Jinshanwei (AlliZE) of Shanghai (_hS) in July, 1999. 46% of LPG imported come from Saudi Arabia, but the amount imported from Iran and United Arab Emirates (UAE) increased at the fastest speed. The amount imported form Iran was 58.89 X 104t increased by 190%. The amount imported from UAE was up to 36.46 X 104t. The amount of LPG imported from Middle East will increase with the completion of freezing tanks with large volumes. It is obvious that the construction of fuel gas facilities in Pearl River Delta including Yangtze River fields is comparable to the reality of importing LPG. The main information is as follows. (1) 26.87 5 X 104m3 tank capacity in Guangdong ) Province -29 - According to statistical data of Guangdong (f-^) Fuel Gas Association, there are 37 wharfs whose tank volume isl0.875X 104 m3 plus 16X 104m3 tank volume of Shenzhen (#t(l|) , the total volume is 26.875 X 104 m3. (2) Invested to develop pipeline gas in Guangzhou Guangzhou Gas Compamy invests 100 MYuan to construct gas pipeline and maintain safety of pipeline network. This company built new gas pipelines to speed up the construction of network and expand the covering area. The new major gas pipeline which stretches to the south, west and north of Guangzhou is 67km. (3) Project of LNG to be planned in Guangdong Province It is said that project suggestion paper of the first LNG receiving station has been turned to State Planning Commission and is in the stage of investigation feasibility. But the project will be completed in 5-7 years, it is estimated that it will have not an obvious effect on liquid gas markets before 2005. - 30 - 2.3.4 Development Plans of Major Fuel Gas Enterprises in China in the 1990- 2000 Period Table 2-4 Statistical table of developing plans of major fuel gas enterprises, 1999-2000 No. Name of enterprise No. of Households Volume supplied, Mm3 1 Beijing (jbS) Gas Company 40000 724.50 2 Beijing () Natural Gas Company 60000 510.40 3 Shijiazhuang (TiJiCJE!:) LPG Company 2000 290. 00T 4 Shijiazhuang (TfBKfT) Elec.&Gas Com. 20000 110.00 5 Tangsham (#lll ) Gas Company 5200 11.00 6 Qinhuangdao (##,%) Gas Company 12000 29.17 7 Zhangjiakou (O ) Gas Company 3000 22.00 8 Taiyuan Gas Company 15000 200.00 9 Hohhot Gas Company 5000 26.70 10 Baotou Gas Company 9.50; 9.00T 11 Chifeng (Longyuan Gas Company 35000 4.30 12 Shenyang (£fcPB) Gas Company 75000 25.55; 51.44; 183. 14T 13 Dalian (^iS) Gas Company 20000 195.50 14 Anshan (#lll ) Gas Company 12866 87.80; 14.43 15 Fushui () Gas Company 5000 48.00 16 Dandong ) Gas & Heat Company 4000 46.99 17 Jinzhou ) Gas Company 15000 38.17 18 Panjin (Sl^) Natural Gas Company 2000 8.00 19 Chaoyang ) Gas Company 3000 16.50 20 Harbin (Dn/BS) Fuel Gas Chemical Com. 4/d 21 Shanghai (b#) Gas Selling Group Com. 200000 1870.00 22 Nanjing () Gas Company 50000 170.00 23 Wuxi Gas Company 10000 41.00 24 Xuzhou (H ) Fuel Gas Company 10000 50.00 25 Changzhou (SjJ'H) Gas Company 8000 38.00 26 Suzhou () Fuel Gas Group Company 10000 63.00; 450.00T 27 Nantong (WiB) Gas Company 5000 27.00 28 Lianyungang Gas Company 2000 6.00 29 Huaiyin (Sl$ ) Fuel Gas Chemical Eng. Com. 1500 4.20 30 Yangzhou Gas Company 5000 22.00 31 Zhenjiang (#iT) Gas Company 4500 31.00 32 Hangzhou (Ilij’H) Gas Company 15000 33 Hangzhou () Pipeline Gas Company 12000 67.86 34 Ningbo (t2^) Gas Company 5000 1150.00T 35 Zhoushan (^lll ) Gas Company 5000 3.40 36 Hefei (1aJ]E) Gas Company 25000 46.00; 200.00T — 31 — No. Name of enterprise No. of Households Volume supplied , Mm3 37 Wuhu () Gas Company 10000 14.40 38 Bangbu (##) Liquid Gas Company 5000 240.00T 39 Huainan ) Gas Company 2500 250.00 40 Huaibei Gas Company 3000 16.00 41 Tongling Fuel Gas Company 3000 32.00 42 Fuzhou ) Gas Company 6000 13.97 43 Sanming (HBjj) Gas Company 2000 8.50 44 Nanchang ( WH ) Gas Company 5000 23.50 45 Xinyu(Sr^) Gas Company 2000 9.60 46 Jinan($rW ) Pipeline Gas Company 10000 85.00 47 Qingdao (W$) Gas Company 35000 73.00 48 Zibo ( 7b tS) Coking Gas Company 2000 19.42 49 Yanta ('Sin* ) i Gas Company 3600 392.00 50 Weifamg ) Gas Company 5000 21.40 51 Zhengzhou (j'H ) Gas Group Company 39200 1.80; 56.40; 60.00T 52 Kaifeng (JFifej') Coal Company 5000 11.00 53 Pingdingshan (f T^lll) Gas Company 6000 51.65 54 Wuhan (5^00 Gas Company 30000 630.00T 55 Wuhan Pipeline Gas Company 15000 107.00 56 Yichang (Sq ) Gas Company 3000 13.50 57 Xiangfan (35SI) Gas Company 3000 0.12 58 Loudi (SSI/S ) Gas Company 1500 8.50 59 Guangzhou (r^ji'l) Gas Company 80000 211.44 60 Shenzhen (##l|) Fuel Gas Company 28240 0.27 61 Liuzhou ) Gas Company 126000 62 Haman(7#|% ) Fuel Gas Company 13500 8.08; 46.00T 63 Chengdu ( ) Gas Company 20000 210.00 64 Chongqing (S^) Fuel Gas Company 4000 510.00 65 Zigong ( |=li% ) Natural Gas Company 3000 115.00 66 Panzihua (##%) Gas Company 2000 53.00 67 Deyang (tSPB ) Natural Gas Company 3000 100.00 68 Dachuan (i£JI|) Fuel Gas Company 3000 18.50 69 Guiyang (HP0) Gas Company 2000 50.00 70 Kuiming (H,^) Gas Company 20000 1234.00 71 Xian (B$) Gas Company 5000 22.00 72 Yinchuan (#jl| ) Gas Company 4000 75.00T 73 Urumqi (Gas Company 5000 350.00T Source: Fuel Gas Information of China Gas Association Note: In the column of volume supplied, if two data are separated by a comma, the data behind the comma is liquid gas amount supplied. -32 - 2.4 Present Status and Related Developing plan With Natural Gas as Fuel Gas According to the requirement of continuous and healthy development of Chinese economy, the sustainable development of ecological environment have been paid more attention. In the past several years, China made the plan of cleaning city air so as to arouse the concern of people to environment. Meanwhile some measures have been taken to lighten pollution and improve the living standards of people. Therefore, natural gas used as city fuel gas should be developed rapidly in order to improve environmental quality. 2.4.1 Present Status of Developing Using Natural Gas as City Fuel Gas At present, city fuel gases are mainly composed of coal gas, refinery gas, liquid petroleum gas and natural gas of which coal gas is main source, then are liquid petroleum gas, refinery gas and natural gas. Natural gas is very suitable for the utilization of people in urban areas on a large scale, but the industry of natural gas being used as city fuel gas developed slowly in China did not paid more attention to the development of natural gas in the past, the resources and output of natural gas concentrates on central and west areas being far away from consumption markets, people lack consciousness of environmental protection and the projects of natural gas needs huge investments. In the past several years, with the gradual increment of natural gas output and demand, there are much more Chinese cities using natural gas, at present, the cities such asBeijing ( it S) ,Tianjin (^#) , Xian (WS) , Chengdu 0$S) and Chongqing (SiSO has established pipeline network of natural gas and the amount consumed of natural gas is increasing year by year. In 1998, China produced 22.3 Gm3 natural gas of which 21.3 Gm3 was consumed. In addition to the amount used by fertilizer, oil gas fields and generating electricity, the amount consumed by urban households was 2.28 Gm3 accounting for 10.7% of the total amount which was lower than the 26% average level in the world. At present, the price of clean natural gas supplied to urban households is rather low, which is 1000Yuan/km3 when conveyed to port stations. The natural gas price conversed and computed according to thermal value and actual cost is less than 50% of coal gas price and is 40% of refinery price and 55% of liquid petroleum gas price. Even after the gradual adjustment of natural gas price, the price of it will be 1300- 1500Yuan/km3, compared with coal gas and LPG, it has considerable economic benefit. At the same time, a conclusion can be drawn according to the comparable -33 - results (see Table 2-5). Therefore, it is an important way to develop and improve the structure of city energy resources in the future. Table 2-5 Comparison of Utilization Between Natural Gas and Coal (100 Mm3) Fields Substitute coal Coal saved Proportion of coal saved 104t 104t accounting for original amount Households 35-53 17-35 50-70 Chemical raw material 28-32 10-14 36-44 Industrial fuel:small and medium-sized boiler 22-25 4-10 18-28 Other ovens and kilns 22-25 4-10 18-28 Substitute coke 22-29 4-11 18-38 Source: State Development & PlanniNG Commission, Institute of Energy 0.3 Mt coal can be saved when 100 Mm3 natural gas instead of coal is supplied to households. At the same time, 3600t S02 and 3000t smoke and dust can be eliminated. So, the economic and environmental benefits are very obvious. 2.4.2 Related Development Plan Using Natural Gas as City Fuel Gas According to prediction, there will be a rapid increasing trend of natural gas supply in China in the nexxt few years. It is because that China is very abundant in natural gas resources which is 38 Tm3 plus over 30 Tm3 coal bed methane and only 4.5% of the resources have been proved. On the other hand, considering other factors including increasing the supply of high quality energy resources and environment protection, China is paying more attention to the development of natural gas industry and conducting research regarding domestic natural gas. Finally, as the infrastructure of energy resources, China has invested more money to a pipeline network for natural gas. All these factors are very beneficial to the development of natural gas industry. The basic thought behind natural gas development and utilization is following the needs of the market and making a full plan, strengthening the development and exploration of natural gas resources, participating in natural gas trade with neighbor countries. Also important are extending the areas using natural gas, expanding the amount consumed and realizing how different gas resources complement each other. In addition are constructing major pipeline networks and systems of natural gas conveyance, distribution and adjustment, and preparation facilities ensuring the safety of gas consumers. Take the utilization of natural gas in Beijing as the example. After the completion of - 34 - Shan-Gan-Ning (K# —f %) pipeline, due to little progress of the facilities construction, the amount of natural gas consumed is increasing slowly, the production capacity is idle and the pipeline running can not reach the designated capacity. Since the end of 1998, in order to lighten environment pollution, some restrictive measures have been taken that greatly increase the amount of natural gas consumed as well as make the production of gas fields and pipelines running reach the designated capacity. The example shows that it is very necessary for all departments to cooperate coordinately in order to develop natural gas and city gas. From the standpoint of city fuel gas, if the facilities of lower reaches can keep up with that of the upper reaches, the pipeline network of natural gas will be connected with regional pipelines of Yangtze River Delta, Bohai (ffij'M) Bay and large or medium sized cities in northeast China. This provides favorable conditions for improving the structures of city fuel gas of Shanghai , Guangzhou (r^i'l) which have reliable sources of domestic natural gas and LPG imported before 2010. If 100.0 Gm3 city fuel gas is to be consumed and 10% of this to be consumed in urban areas in China in 2010, the volume consumed by cities will amount to 10.0 Gm3, by then, the structure of city fuel gas will be improved greatly. 2.4.3 Combined Plan Between Natural Gas and City Fuel Gas Industry and Demand Prediction • Commercial and residential fuel It is predicted that the population in urban areas will amount to 730 M in China in 2010. 350 M of them will live in large and medium cities with ratio using gas of 85- 95%, 380 M of them will live in other cities with ratio using gas of 45% and the demand of households and all kinds of city industries will be 63.0-71.3 Gm3. • The plan for the city fuel gas industry to be combined with natural gas Independent and complete conveying and distributing systems for natural gas with high, medium or low pressures will be built in the cities along long pipelines. At present, Sichuan (H9Jl|) , Beijing (zjbijO , Tianjin , Xian (#$) and Shengyang (£tPB) have their independent supply areas of natural gas. The systems mixing LPG with air or the conveying and distributing pipeline systems for LPG can be built in cities along long pipelines being built. A gas mix of LPG and air has the same effect as the characteristics of natural gas combustion, so it is called transitional gas. The pipeline for the conveying and distributing systems of LPG should be designed in accord with the characteristics of natural gas so as to transit -35 - smoothly. The substitute gases which have the same characteristics of 10T, 12T and 13T of natural gas combustion can be produced by way of mixing LPG and air, so they can be used as transitional or implement gas sources. The results of gases mixed with by nine kinds of LPG and air are shown in see Table 2-6. Table 2-6 Results of Gases Mixed by 9 Kinds of LPG and Air Kinds of LPG Propane Butane Propers r 2' 3' 4' 5' 6' and butane 12 Composition T of LPG % 55 60 45 50 50 55 50 50 50 50 55 50 55 50 55 Dew point °C -33.2 -30.4 2.8 5.6 7.2 -4.6 -8.0 -5.2 -0.3 5.9 -4.6 -4.6 -7.4 -14.4 -14.4 13 Composition T of LPG % 65 55 60 60 55 55 60 60 60 Dew point °C -28.1 8.1 0.23 -2.7 1.8 8.3 -2.1 -5.0 -11.5 Upper limit of LPG 10.12 explosion % 9.50 8.50 8.97 9.96 9.67 9.66 9.97 9.73 Source: “Fuel Development” It can be seen from the above table, when volume ratio is 45-65%, a transition gas of 12T or 13T natural gas can be produced. The upper explosion limits of LPG vary between 8.5-10.12%. Therefore, the volume composition is five times that of upper explosion, which is far higher than the requirement of 1.5 times specified. The dew points vary between -33.2-8.3 °C. 2.5 Production, Present Status of Supply and Outlook for Liquid Petroleum Gas (LPG) 2.5.1 Present Status of Supply and Demand of Liquid Petroleum Gas in China Generally, 45% of LPG is produced by oil refinery plants and 55% is produced by oil fields and natural gas fields. Most of LPG comes from oil refinery plants and 90% of it is produced by catalytic cracking process. The dependence of LPG production on refinery plants means that the composition and adjustment of oil refining ability and change of production structure have a direct effect on the production itself. In China, with the development of economy and the improvement of people ’s living standards, LPG as a fuel is of great importance in daily lives and production. Accordingly, the output and demand are also increasing rapidly. In 1998, the output of domestic LPG increased continuously at a high speed. It increased by 13% from 6.35 Mt to 7.20 Mt on the conditions against a 0.3% decrease of crude oil , 21.2% of gasoline, 0.4% of diesel and 90.4% of fuel oils. The part used as fuel and material in oil plants only increased from 1.01 Mt in 1997 to 1.04 Mt while the amount sold increased by 15% from 5.34 Mt to 6.16 Mt. The increment of LPG demand is much higher than that of its output. Therefore, the amount of LPG imported in 1997 that is — 36 — 5 times of the amount imported in 1991. Stimulated by the price, the importation of LPG produced the highest record in 1998, which increased by 1/3 from 3.58 Mt in 1997 to 4.47 Mt. Also, domestic output which was 7.20 Mt increased by 13%. The proportion of LPG imported amounted to 41% from 35% in 1997 in domestic markets (see Table 2-7). Due to the decrease of LPG imported from South Korea, China has become the second largest country importing LPG only inferior to Japan. At present, LPG imported has become an important LPG market resource in China. The departments producing LPG are composed of three units including China National Petro-Chemical Corporation, China National Petroleum Corporation and local oil refining plants. The total output of LPG was 5.12 Mt in 1997. 4.23 Mt accounting for 82.67% of the total was produced by 34 oil refining enterprises belonging to China Petro-Chemical Corporation, 0.72 Mt accounting for 14.05% was produced by 28 enterprises belonging to China National Petroleum Corporation, (see Table 2-8). Table 2-7 10 Top Countries of LPG Production and Demand in 1997 (Mt) Countries Amount consumed Increase or decrease % U.S.A 52.11 0.7 Japan 19.76 -1.6 China 10.11 9.0 Mexico 8.82 2.2 Brazil 6.34 3.2 South Korea 6.03 4.8 Canada 5.71 -1.9 India 4.61 9.8 Saudi Arabia 3.65 15.4 Italy 3.56 1.5 Countries Output Increase or decrease % U.S.A 46.81 1.5 Saudi Arabia 18.10 0.4 Canada 11.11 3.4 Mexico 6.69 -12.6 China 6.35 15.5 U.K 5.76 -1.5 Algeria 5.64 8.4 UAE 5.27 2.9 Venezuela 5.07 4.0 Russia 4.75 0.7 *The data of China have been corrected. Source: ’1998 Statistic Annual Evaluation of Global LPG -37- Table 2-8 Output of LNG by Department, 1991-1997 (M t) 1991 1992 1993 1994 1995 1996 1997 Departments ——.Year SINOPEC 2.17 2.41 2.57 2.71 3.05 3.43 4.23 CNPC 0.12 0.16 0.08 0.27 0.41 0.51 0.72 Locals 0.08 0.10 0.13 0.14 0.15 0.17 0.17 Total 2.37 2.67 2.78 3.12 3.61 4.11 5.i/ From the view of the relationship between regional outputs of LPG and population distributions, the proportions are very uneven (See Table 2-9). Table 2-9 Comparison Between Regional Outputs and Population ^^^Qategory Output of LPG in 1996 Population, 1996 Regions Output, 103t Proportion , % Population, M Proportion , % North China 591 14.36 141.07 11.63 Northeast China 1144.8 27.82 104.54 8.62 East China 1320 32.07 350.46 28.89 Central and south 781 18.98 337.09 27.79 Southwest China 5.1 0.12 192.71 15.89 Northwest China 273.5 6.65 87.08 7.18 Total 4115.4 100.00 1212.95 100.00 It can be seen that the proportions of output accounting for the total are the same as the proportions of population in North China, East China and Northwest China. Larger population in Central China and Southwest China account for 43.68% of the total, while the output of LPG only accounts for 19.1%. Especially, the population in Southwest China accounts for 15.89% of the total but only 0.12% of LPG output. The population in Northeast China accounts for 8.62% of the total and 27.82% of LPG output. It is obvious that balance has been lost seriously. 2.5.2 Present Status of Supply and Demand of Liquid Petroleum Gas in China 2.5.2.1 General status of the LPG markets in China in the 1991-1997 Period In 1991-1997 period, the output, amount imported and demand of LPG increased obviously (see Table 2-10). It can be seen from the table that domestic output of LPG has not met the social demand with its continuous growth. Due to the difference between market demand and supply, more LPG imported has entered Chinese markets. The proportion of LPG imported accounting for the total consumed amounted to 48.4% in 1996, up from 30.6% in 1994. Effected by market trends, it decreased lightly in 1997 to 41.3%. -38- Table 2-10 Changes of LPG Markets in the 1991-1997 Period (1031) 1991 1992 1993 1994 1995 1996 1997 Outputs 2370.7 2665.7 2771.4 3118.9 3615.4 4115.4 5116.3 Imports 204.7 314.7 673.7 1370 2313 3546.7 3582.4 Exports 6.7 5.5 3.4 12.8 70.5 333.4 351.3 Demand 2568.7 2974.9 3441.7 4776.1 5857.9 7328.7 8347.4 2.S.2.2 Pattern of Demand and Supply of LPG in China The rapid increase of national economy stimulates the growth of energy resource demand in China. The amount of LPG consumed is increasing at a far higher speed than that of petroleum and other energy resources. (1) Energy resource with the highest growth rate In the past 15 years from 1980 to 1995, the amount consumed by households that increased 3.4% per year reached 157.45 Mtce from 95.83 Mtce. The amount of coal consumed increasing by 1% per year only reached 135.30 Mt from 115.74 Mt. The amount consumed of coal gas and natural gas increasing by 9.8% and 16.2% separately reached 5.7 Gm3 from 1.4 Gm3 and 1.9 Gm3 from 200 Mm3. The amount of LPG consumed increasing by 18.3% per year reached 5.34 Mt in 1995 to 0.43 Mt in 1980, especially in the 1990-1995 period, the average growth rate of LPG was up to 27.4% (see Table 2-11). (2) Great market potential China has exceeded Mexico and becomes the third largest country of LPG importation only inferior to Japan and U.S.A in the world. However, if compared with average level per person in the world, the consumption of LPG that is only 1/3 of the worlds ’ is still very low in China. Although the amount consumed by households increased from 0.4Kg per person in 1980 to 5.7Kg per person in 1996, it is still far lower than those of South Korea and Japan. In China, 89% of LPG is consumed in urban areas where only less than 3/10 of the whole population is living in. However, while in rural areas, especially in inland areas, the consumption of LPG is still in the early stage. — 39 — Table 2-11 Amount of Energy Consumed for Living in 1980-1997 Period 1980 1985 1990 1992 1993 1994 1995 1996 1997 Population, M 987.05 1058.51 1143.33 1171.71 1185.17 1198.50 1211.21 1223.89 1236.26 Urban areas 191.40 250.94 301.91 323.72 333.51 343.01 351.74 359.50 369.89 Rural areas 795.65 807.57 841.42 847.99 851.66 855.49 859.47 864.39 866.37 Total consumed Mice 602.75 766.82 987.03 1091.70 1159.93 1227.37 1311.76 1389.48 1420.00 Amount consumed by households Mice 95.83 133.18 157.99 156.36 157.31 154.13 157.45 177.14 Coal, Mt 117.54 156.24 167.00 147.80 145.15 130.47 135.30 143.99 Kerosene, 103t 990 1220 1050 870 700 690 640 650 LPG, 103t 430 910 1590 2390 2990 3850 5340 7030 7420 Natural gas, Gm3 0.2 0.4 1.9 2.2 1.7 2.0 1.9 2.0 Coal gas > Gm3 1.4 1.3 2.9 5.2 5.4 7.6 5.7 4.8 Heat, TJ 10.920 56.510 89.720 114.100 113.510 142.610 126.371 166.690 Electricity, Gkwh 10.5 22.3 48.1 640.0 73.7 86.7 100.5 113.3 Average amount consumed /person Kg tee 97.7 126.7 139.2 133.4 130.6 129.3 130.8 145.5 Of which : coal, Kg 118.0 148.7 147.1 126.1 120.5 109.5 112.3 118.3 Kerosene, Kg 1.0 1.2 0.9 0.7 0.6 0.6 0.5 0.5 LPG, Kg 0.4 0.9 1.4 2.4 2.5 3.2 4.4 5.8 Natural gas, m3 0.2 0.4 1.6 1.8 1.4 1.7 1.6 1.6 Coal .gas, m1 1.4 1.2 2.5 4.4 4.5 6.3 4.7 3.9 Electricity, kwh 10.7 21.2 42.4 54.6 61.2 72.7 83.5 93.1 Reference source: China Statistical Yearbook In the past two years, the amount of LPG consumed reached a high level in rural areas. The amount of LPG consumed from zero in early 90s ’ to 0.76 Mt in 1996 which accounted for 11% of the total consumed. With the improvement of living conditions and the increase of income, the demand potentialities of LPG is much more than ever in rural areas, especially east areas near large cities. (3) Difference between demand and supply in south China LNG is mainly supplied by oil refining plants and imported from neighbor countries. 40% of oil refining capacity is concentrated in Northeast and North China, so LPG supplied is generally sufficient in these areas. At the same time, a small part is conveyed to South China by land and by sea. In 1996, 2.34 Mt LNG accounting for 42% of the total national output was produced by Northeast and North China, meanwhile, 2.32 Mt consumed only accounted for 25% of the total consumed. - 40 - The difference between demand and supply mainly exists in Central-South and East China. In 1996, the total amount consumed reached 6.31 Mt which accounted for 68% of the total consumed in these two areas. However, due to the lack of oil refining capacity, the output of LPG, only 2.79 Mt accounting for 50% of the total output of the whole country, could meet 44% of the demand in this area. In Central-South area, the output of 0.86 Mt could only meet 23% of the demand. The difference between demand and supply could be made up by the amount imported (see Table 2-12). Table 2-12 Reginal Differences Between Demand and Supply in 1997 (103t) North Northeast East China Central Southwest Northwest Total in China China south China China China Outputs® 835.1 1797.3 2163.8 1113.8 7.7 434.4 6352.6 Imports —— 5.9 790.9 2785.6 — — - 3582.4 Exports —— — - 30.4 361.8 — - - - 392.2 Consumption® 705.7 1807.5 2990.1 3940.6 116.5 547.5 10107.9 CD Not including the output of LPG from oil field. (2) Actual consumption. (4) Rapid increase of household demand Household demand for LPG is increasing rapidly. In the 1990-1996 period, the amount consumed by households reached 7.03 Mt from 1.59 Mt which increased by 28.2% annually. The amount consumed by industry and commerce increased by 13.2% and 23.4% respectively. In 1996, the amount consumed by households accounted for 75.9% of the total amount compared with the 62.3% in 1990 (see Table 2-13). Table 2-13 Consumption Structure of LPG in 1980-1997 Period (Mt) 1980 1985 1990 1992 1993 1994 1995 1996 1997 Consumption 1.20 1.56 2.54 3.89 5.01 5.73 7.41 9.27 10.11 Households 0.43 0.91 1.59 2.39 2.99 3.85 5.33 7.03 7.42 Urban areas 0.43 0.91 1.59 2.35 2.89 3.68 5.06 6.27 6.54 Rural areas 0.0 0.0 0.0 0.04 0.10 0.17 0.27 0.76 0.88 Commercial 0.77 0.65 0.95 1.50 2.02 1.88. 2.08 2.24 2.69 Industry 0.76 0.60 0.82 1.08 1.56 1.66 1.91 1.75 2.01 2.5.23 Present Status of Importation of LPG in China After the stagnant progress of importation of LPG in China in 1997, supported by favorable conditions of the improvement of international market priceS and domestic stocks, it resumed a rapid growth rate again. The new statistical data of China Customs Bureau showed the amount of LPG imported reached 4.77 Mt in 1998 from 3.58 Mt in 1997which increased by 33%. - 41 China began to import LPG on a large scale in the early 90s ’. The amount imported reached 4.77 Mt in!998 from 0.12Mt in 1990 which increased by 59% annually. With the increase of the importation, the factor of price has a more considerable effect. It is predicted that China has great potential on the condition of lower international price in the next future 5 years before the importation of LNG. From 1990 to 1998, the amount of LPG consumed reached 10.07 Mt from 1.94 Mt which increased by 23% annually. China is the third largest country of LPG consumption only inferior to Japan and U.S.A. The amount imported accounts for about 40% of the total compared with 5% in early 90 ’s. 2.5.3 Outlook for LPG in China China has the most active markets of LPG in the world. Since 90 ’s, compared with the average growth rate of 4% of the globe, LPG consumption increased by 20% annually. In 1998, although the growth of national economy was slower than ever, LPG amount consumed was up to 10.10 Mt, which increased by 23% due to low price and strong demand of household fuels. LPG is one of the most active kinds within the oil product system. The opening up of LPG markets and the promotion of LPG consumption, more investment of domestic conveying and storage infrastructure and the change of production capacity have caused the LPG industry enter a transition period. From meeting the demand of coastal areas to expanding the selling and operating network of inland and rural markets, from making up for the consumption difference by importing LPG to the communication and competence of domestic enterprises on a larger scale, the markets for LPG have become more diverse. 2.5.3.1 Outlook for LPG Production in China • The expansion of FCC supporting an increase of LPG output Since 90 ’s, in order to increase the output of light oil products such as diesel and gasoline, catalytic cracking facilities have been constructed on a large scale, which has greatly increased the output of LPG. From 1990-1997, FCC capacity increased to 72.00 Mt from 41.65 Mt. Meanwhile, the amount of crude oil processed increased to 153.72 Mt from 107.32 Mt and the output of LPG reached 6.10 Mt from 2.48 Mt that increased by 46.62% annually. Due to the obvious growth of light crude oil imported from Middle East, the production rate of light oil has been improved greatly. The total output of LPG accounted for 2.3% of the amount of crude oil processed in 1990, while this proportion was 4.8% in 1998. The output of LPG amounted to 7.20 Mt in -42 - 1998. The increase of the output of LPG is closely related to the expansion of FCC capacity. • The effect of price system changes of domestic oil products on LPG output Since the opening up of the markets for oil products in 1992, the amount of LPG imported increased much more. The sale and price of LPG produced by oil refining plants have been keeping up with market development. Oil refining plants increased their output according to prices in the market. From 1990-1998, the amount used as raw material and fuel increased by 9.9% annually in these plants, reaching 1.40 Mt from 0.65 Mt. At the same time, the amount of LPG sold reached 5.80 Mt from 2.49 Mt, which increased by 15.6% annually. Price is one of the factors leading to a strong increase of amount of LPG sold. • Increasing LPG output in order to balance demand and supply of gasoline and diesel The price of diesel is rather low due to historic reasons, which makes gasoline and diesel in short supply. Promoted by strong demand of diesel, the domestic price of diesel is far higher than the international level. Serious measures against diesel smuggling have reduced this problem. Meanwhile, the output of gasoline that is very high must be decreased to the lowest level. Therefore, increasing LPG output is one of the important ways to balance the demand and supply of gasoline and diesel. It is predicted that the output of LPG will increase by over 10% this year. • • Increase of FCC capacity will be restricted by the requirements of environment protection Due to environment protection, the domestic markets of gasoline will take new measures to restrict the exhaust of cars. Forecasts made by the Energy Institute of the State Development and Planning Commission are as follows (also shown by Fig.2-1): The 2000 national output of LPG: 8.00-8.50 million tons; The 2010 national output of LPG: 12.33-14.35 million tons; The 2020 national output of LPG: 17.65-20.72 million tons. -43 - 25 i 20.72 1990 2000 2010 2020 Fig. 2-1 Forecast of China’s LPG output (Mt) 2.53.2 Forecast of Consumption of LPG in China Generally, the increase of domestic output of LPG is still lower than the increase of its demand. The demand of LPG increased by 23%, 10% greater than the growth rate of domestic output from 1990 to 1998. The amount of LPG consumed exceeded 10.00 Mt, 80% of which was consumed by households in 1998. In the past 10 years, household demand increased by 25% and industrial and commercial demand increased by 16% annually. Encourgement of domestic demand is the reason for the increase of LNG consumption in China. With the increase of population, the improvement of people ’s living standards in urban and rural areas and the requirements of environment protection, people have a stronger dependence on LPG as a kind of clean fuel and its demand is increasing day by day. In 1990, LPG consumption was almost zero in rural area, while in 1997, the amount consumed was 0.88 Mt and more than 1.00 Mt in 1998. It is predicted that the demand of LPG in China will be 11.20-13.29 Mt in 2000, 29.05-34.47 Mt in 2010 and 50.29-59.61 Mt in 2020. - 44 - 1990 2000 2010 2020 Fig. 2-2 Forecast of the Domestic LPG Demand (Mt) Guangdong () Province is the center of LPG consumption. In 1998, the amount consumed was up to 3.34 Mt, which was 10 times amount in 1990. The amount imported was only 0.07 Mt in 1990 but reached 3.27 Mt in 1998, which made LPG become the most serious energy resource depending on importation. However, with the completion and running of large conveying and storage facilities for LPG, the consumption center of LPG is moving to Yangtze River Delta from south China. East China including Shanghai, Jiangsu (tfS) , Zhejinag (#Lf) , Jiangxi (iL #) and Shandong ( lLS ) is one of the areas experiencing having the highest growth rate of economy and is the second largest consumption market of LPG after south China. Now, 60% of 3.30 Mt LPG consumed is supplied by oil refining plants belonging to China National Petro-Chemical Corporation now. The amount imported increased to 1.31 Mt from 0.79 Mt in 1997. When two freezing tanks being built in Zhangjiagang in Jiangsu (£T$) Province and Jinshanwei (AlllZR) in Shanghai (_b#) are put into use this year, the supplying capacity of LPG will be twice the previous capacity. The gradual expansion of the importation of LPG provides good conditions for the development of LPG cars. It is an important measure to develop clean LPG cars to control environment pollution and lighten the amounts of city emission. The market of LPG for cars is in its early stage. In 1998, there were about 6000 LPG cars and 30 filling gas stations. It is predicted that there will be 15000 LPG cars and 60 filling gas stations. Meanwhile, the number of cars using compressed natural gas as fuel will — 45 — increase to 35000 from 4600. The Gaps between supply and demend of LPG are showen as follows: 50.29 Demand 29.05 3 17.65 Output 12.33 1990 2000 2010 2020 Fig. 2-3 Gaps Between Supply and Demand of LPG (Low Scheme) (Mt) 59.61 Demand 34.47 Output 13.29 20.72 14.35 Fig. 2-4 Gaps Between Supply and Demand of LPG (High Scheme) (Mt) 2.S.3.3 Forecast of Importation of LPG in China The increasing difference between demand and supply will require greater amounts to be imported. Due to the backwardness of domestic output, the demand for LPG imported will increase to 10.00 Mt in 2005 in China. The factors effecting the importation of LPG are mainly price and a stable exchange rate of Renminbi(RMB). Furthermore, other competitive fuels such as liquid natural gas (LNG) and natural gas will have an adverse effect on LPG markets. However, because the LNG project will be completed in 5-7 years in Guangdong (f^S) Province, it is estimated this will — 46 — not have an adverse effect on LPG markets before 2005. Table 2-14 Amount and Price of LPG Imported in the 1993-1998 Period Year Amount Imported Volume of importation Average price ($/t) (103t) (M$ ) 1993 673.6 153.7 228.21 1994 1369.7 287.6 209.94 1995 2313.6 442.9 191.44 1996 3546.8 771.1 217.40 1997 3582.4 844.3 235.68 1998 4765.9 806.1 169.15 Table 2-15 Increase of LPG Imported in the 1992-1998 Period (103t) 1992 1993 1994 1995 1996 1997 1998 Import 314.7 673.6 1369.7 2313.6 3546.8 3582.4 4765.9 Decrease or increase, % 53.7 114.0 103.3 68.9 53.3 1.0 33.0 Sources of Importation Saudi Arabia 1.9 50.1 427.0 1205.1 2289.6 2113.8 2219.5 Kuwait — 1.6 36.1 179.9 185.9 34.9 95.0 Iran — — — — - — — — — 23.3 3.3 203.3 585.9 UAE 0.2 — 0.8 4.9 52.9 55.8 364.6 Qatar ——— 9.0 4.7 ——— 0.00 7.6 37.5 Other countries —— — 1.9 — — 1.4 — - -- Middle-East 2.1 62.6 468.6 1414.6 2531.7 2415.4 3302.5 South Korea 26.8 73.9 69.0 90.1 145.9 241.2 577.6 Australia - — - — 2.2 2.0 70.9 163.7 77.3 Singapore 74.8 155.1 551.2 456.8 280.9 241.4 143.7 Philippines 73.9 237.1 167.1 108.9 102.2 87.6 136.3 Malaysia 1.8 —— 8.8 19.4 88.8 64.5 95.7 Thailand 19.8 18.6 1.4 26.7 65.0 192.1 167.4 Indonesia 19.6 20.5 25.2 59.3 125.8 91.7 145.4 Japan 43.1 33.9 45.3 57.0 45.5 5.4 31.2 Other countries 49.2 51.3 27.5 50.7 22.0 34.5 28.9 Asian and Pacific 309.0 590.4 897.7 870.9 947.0 1122.1 1403.5 Region Other regions 3.6 20.5 3.5 28.1 68.0 44.9 56.9 Import by city and province Guangdong 585.6 1119.7 1663.4 2613.3 2661.8 3271.9 Guangxi (P®) 0.1 — 10.6 21.4 28.3 54.4 - 47 - 1992 1993 1994 1995 1996 1997 1998 Hannan (>SW) 10.4 28.7 62.7 87.4 95.6 93.1 Other cities and 0.1 0.1 — 5.3 — — provinces Center and South 596.2 1148.5 1736.6 2727.4 2785.7 3419.4 Shanghai (b##) 15.1 79.3 175.0 300.5 136.8 81.2 Jiangsu 33.7 61.7 190.5 241.1 356.7 677.0 Zhejiang 10.1 69.1 145.3 210.0 110.0 224.8 Fujian 14.8 5.6 49.2 49.6 182.5 308.9 Shandong ( lUS) — —— 6.6 4.9 19.1 East China 73.7 215.7 560.0 807.8 790.9 1311.0 Northeast and North 3.8 5.5 17.0 11.5 5.9 35.3 China -48- ./"w Ylnchuon, «;n *xy, g «i£,\\(No w Wuh«n •'®* r Guongill -4rai Fig.3-3 Distribution of Coal Resources in China 1 -Sanjiang muling () area; 2-Northern Liaoning (iX-lb) ; 3-Hun River ('/'V ill) area; 4-Liao River and Taizi River (1£M A?#) area; 5-Western Liaoning (X£®) ; 6-Beijing Tangshan Ojtii'f) area; 7-Lastern Inner Aut (lAj ‘HtAii't\>) Region; 8-Erdousi ( ) coal field; 9-Daning ()kT) coal field; 10-Qinshui (i-ll;/K ) coal field; 11 -Laslcrn loot of the Taihangshan (A^J'lll M ) mountains; 12-Western Henan ( M ® ) Province; 13-Jiangsu Shandong Henan and Anhui (ill -)> — i.L| /jR — M ij-j — ’MfflL) Provinces; 14-Zhejiang Jiangsu and south Anhui (tilrill— iLi)> — I’Ourl'J) area; 15-Soulheastern Hubei ( ) Province; 16-Hunan Jiangxi and Guangdong (SS—$1®—Provinces; 17-Fujian and Guangdong (finJtli—)"&') Provinces; 18-Central Guangxi Zliuang Aut (f^®) Region; 19-Guizhou Yunnan and Sichuan ( VI' 'Ml — 2< I ft — ® J11) Provinces; 20-Huayingshan mountain ( 11.1 ) area; 21-Central Yunnan ( zv|W111 nil) Province; 22-1 lexi corridor (/"] ® >JjJfili) area; 23-Datong River ( AMV"/) area; 24- t haibei () area; 25-1 ululan hami (Hi; m fR-* lu'Ar) coal field; 26-Zhungecr ( rfl;i-lS /j() coal field; 27-Yili area; 28-Northern fringe to Talimu Un; 29-Norlhem Tibet (SUb) Aut Region. — 51 — } Fig. 3-4 Distribution of China’s Coal Mines (1996) an®' as* -f ) be*; / S c=z /msa ; $lg: Jm* t=» ) BSO A^fi 300—1000 7Tfrt 3.1.2 Coal Production in China The total coal output of China was 1,325 Mt in 1997. Of this 529 Mt was produced by state-owned key coal mines, accounting for 39.93%, and state-owned local coal mines produced 796Mt, accounting for 60.07%. Town and village-owned coal mines which belong to state-owned local coal mines produced 570Mt, accounting for 43.04% of the total national coal production. All the above facts indicate that small or medium scale coal mines currently occupy the dominant position in coal production. The regional coal production is shown in Table 3-3 and Fig.3-5. North China district, having produced more than 1/3 of the total national coal output, is the largest coal production district in China at present. The coal output in Northwest district is the smallest among these six districts, only accounting for 9.28%. Shanxi (ill#) Province, having over 330 Mt of coal production inl997 that accounted for about 25% of the national coal production, has been the leading coal production province for many years. Henan (M W ) , Shandong (ill $ ) , Inner Mongolia ( |*j IE'S' ) , Heilongjiang () , Hebei (Mdfc) , Guizhou (j&ffi) , Sichuan (H9Jl|) , Liaoning ( T) , and Shaanxi (EfeM) are the largest coal production provinces from No.2 to No. 10. However, only Henan (MW) Province that has more than 100 Mt coal production in all these provinces. All the other provinces have less than 100 Mt coal production. Anhui (5k:#) and Hunan (#W) Provinces ’ coal production is just a little more than 40 Mt. Coal production is less than 10 Mt in Fujian (##) , Qinghai ( WW ) , Zhejiang () , Hainan (MW) and Tibet (USE) . The situation of coal production illustrates clearly that it is very uneven or in an inappropriate state by districts in China. The main trend is that coal production in the northern areas is much more than that in the southern areas. And this will result in the transportation of large volumes of coal from the north to the south, i.e., “Northern coal moving to southern areas”. In the future, western coal will have to be transported from west to east with the extensive exploitation of the Shenhua coal field. Table 3-3 Regional Coal Production in China in 1997 Region Total North Northeast East Central Southwest Northwest China China -south Production 1325.25 487.12 157.99 193.02 175.07 189.04 123.01 (Mt) Percentage 100.00 36.76 11.92 14.56 13.21 14.26 9.28 Source: Ministry of Coal Industry - 53 - There are two groups of bituminous coals. One group is that which suitable for coking, and the other is thermal coal. The output mix of them is shown in Table 3-5. Table 3-5 Output Mix of Bituminous Coal Group Output, Mt Percentage, % Coal suitable for coking 637.56 48.11 Thermal coal 388.96 29.35 Source: Ministry of Coal Industry Coal suitable for coking had the largest output with a total amount of 637 Mt production. Table 3-5 shows the details. Among all these classes of coals, gas coal, primary coking coal and 1/3 coking coal had relatively large percentages, being 8.47%, 8.24% and 7.73%, respectively. The total output of fat coal and gas-fat coal, characterized by very strong caking properties, accounted for just 11.56% of the total national coal output. And lean coal and meager lean coal, with weekly caking properties, accounted for 5.99%. Table 3-6 shows the details. Table 3-6 Output of Coals Suitable for Coking in 997 Class of Coal Primary 1/3 Fat Coal Gas-fat Gas Meager Lean Others# Coking Coking Coal Coal Lean Coal Coal Coal Coal Production (Mt) 109.17 102.42 83.98 69.15 112.27 28.55 50.94 81.07 Coking coal % 17.12 16.06 13.17 10.85 17.61 4.48 7.99 12.72 Total % 8.24 7.73 6.34 5.22 8.47 2.15 3.84 6.12 #: “Others” here mean coal for which the class is unknown. Source: Ministry of Coal Industry Among the thermal coals mentioned in Table3-5, the output oflong flame coal is relatively large. Further information is shown in Table 3-7. Output of non-caking is very small, accounting for only 1.5% of the total national coal production. Table 3-7 Output of Thermal Coals in 1997 Class of Meager Weakly Non Long Others Coal Coal Caking caking Flame Coal Coal Coal Production 59.12 80.96 19.83 117.48 111.57 (Mt) Thermal 15.20 20.81 5.10 30.21 28.68 coal % Total % 4.46 6.11 1.50 8.86 8.42 Source: Ministry of Coal Industry — 55 — Both output and quality of coal produced in the main or large coal bureaus are listed in Table 3-8. Among these, Datong (^[r]) , Pingshuo () , Tiefa () , Pingzhuang (?BE) , Fuxin (##r) , Hebi (US) , Yima ) , Zhengzhou (3$TH ) and Tongchuan (#JI|) produced mainly thermal coal, Yangquan (PB M) and Jinchen (##) produced anthracite, Shuanyashan, Luan (#$) and Fushun () produced both thermal coal and coal suitable for coking. The others mainly produced coal suitable for coking mainly, albeit middlings, slime, washed mixed coal and slack coal were for sale as thermal coal. As for the quality of coal, especially thermal coal, we usually use ash content , sulfur content, calorific value, moisture and ash fusion to evaluate them. Sulfur content in Qitaihe M) , Hegang (#%M ) and Shuangyashan ) coal is very low at 0.19%, 0.21% and 0.22%, respectively. The average sulfur content of commercial coal in Jixi (X% @ ) , Luan ( #$) , Hebi ( #$S) , Zhenzhou (TPTH ) , Huaibei ( Sdb) , Jinchen (##) , Pingdingshan (f #ll|) and Panjiang (SOI) is lower than 0.5%. The average sulfur content of commercial coal in Yangquan (PBJl) , Xishan (|5j ill) , Kailuan (TP#) , Pingshuo (f #) , Fenxi (%@) , Pingzhuang (-^FJt) , Yima iSm ) and Tongchuan (#)l|) is over 1%. Sulfur content in Fenxi () coal is 2.72%, the highest among these coal mine bureaus mentioned. Table 3-8 Coal Output and Quality of Main Coal Bureaus of China in 1997 Mt Ad Vdaf St,d Qnet,ar ST Output 1 (%) (%) (%) (%) (MJ/kg) (Mt) Datong (^C[W)) 8.0 10.2 30.2 0.74 26.97 1200 34.07 Pingdingshan TFT/1 ill 5.8 26.9 33.9 0.49 22.75 1424 19.56 Yanzhou (TdT'l) 7.7 20.1 39.7 0.98 23.31 1445 19.24 Kailuan (TP#) 8.4 33.1 36.2 1.02 19.18 1460 18.63 Xishan (Mill) 5.2 20.4 18.0 1.12 25.90 1350 17.09 Yangqun ( PBM) 5.4 18.5 9.9 1.20 26.30 1400 16.34 Tiefa (ftii) 11.7 32.0 40.8 0.67 18.27 1399 15.07 Huaibei (?64b) 7.1 28.3 30.3 0.44 18.76 1465 14.38 Huainan (SS) 6.4 27.0 37.9 0.51 22.25 1500 13.82 Hegang (#N) 7.0 21.4 36.9 0.21 24.10 1324 12.99 Luan (#^) 5.0 16.5 16.5 0.33 26.80 1420 12.84 Xuzhou (#TH) 7.5 24.0 37.5 0.66 22.26 1345 12.68 Fuxin (-$-$?) 13.5 19.7 39.5 0.85 21.41 1294 11.84 Xinwen (##) 10.9 28.5 39.3 1.21 20.00 1379 11.71 Pingshuo (^F#) 8.5 14.0 37.4 1.16 24.94 1450 11.60 Fengfeng (%il#) 6.1 22.7 19.7 0.84 24.45 1449 10.03 Shuangyashan O^l^ili)) 9.5 21.6 40.2 0.22 22.29 1354 10.00 Jincheng (##) 5.8 18.4 6.9 0.47 25.96 1499 9.67 — 56 — Mt Ad Vdaf St,d Qnet,ar ST Output (%) (%) (%) (%) (MJ/kg) (Mt) Jixi ($B) 4.5 28.3 33.4 0.30 22.67 1353 9.48 Qitaihe (^pM) 3.8 24.2 30.3 0.19 25.02 1380 8.80 Yima 8.9 23.9 35.5 1.31 20.68 1318 8.51 Zaozhuang (^tiE) 7.8 22.9 37.8 1.44 23.12 1373 8.09 Fushun (KJE) 11.1 18.1 45.9 0.55 22.87 1350 7.60 Pingzhuang (-^FJFE) 24.8 24.4 44.1 1.11 15.19 1260 6.63 Zhengzhou (^P^l'l) 5.4 20.5 12.4 0.35 25.62 1452 6.51 Shitanjing (Ti^zfr) 4.4 19.8 13.9 0.55 25.88 1208 6.06 Hebi (IIS) 6.2 17.1 16.7 0.30 26.77 1401 5.90 Fengxi (^H) 4.6 23.6 24.0 2.72 24.13 1448 5.70 Tongchuan (#jl|) 6.4 28.8 27.6 1.96 22.38 1338 5.56 Panjiang (SHI) 8.2 33.3 34.1 0.49 20.21 1270 4.38 Source: Ministry of Coal Industry Table 3-9 Coal Mines with Ash Content Between 10%~20% Name Datong Y angquan Luan Fuxin Pingsuo Jinchen Fushun Shitanjing Hebi m* **r ## mm ### Ash, % 10.2 18.5 16.5 19.7 14.0 18.4 18.1 19.8 17.1 Table 3-10 Coal Mines with Ash Content Between 20%~30% Name Pingding Yanzhou Xishan Huaibei Huainan Hegang Xuzhou Xinwen Fengfeng shan ^#1 Bill mit SS mm ## Ash,% 26.9 20.1 20.4 28.3 27.0 21.4 24.0 28.5 22.7 Name Shuangyais Jixi Qitaihe Yima ZaoZhuang Pingzhuang Zhengzhou Fenxi Tongchu ban an -ha'M ^E TE mti &B #jl| Ash,% 21.6 28.3 24.2 23.9 22.9 24.4 20.5 23.6 28.8 Table 3-11 Coal Mines with More than 30% of Ash Content Name Kailuan (Tfi$) Tiefua (#&) Panjiang Ash, % 33.1 32.0 33.3 - 57 - Table 3-12 Coal Mines with <0.5% Sulfur Content 1 Name PingDing Huaibei HeGang Luan Shuang Jinchen Jixi Qitaihe Zhengz Hebi Panjiang Shan yashan huo TOlLj mit M -t&YSJ ao: sulfur,% 0.49 0.44 0.21 0.33 0.22 0.47 0.30 0.19 0.35 0.30 0.49 Table 3-13 Coa Mines with Sulfur Contents Between 0.51%— 1.00% Name Datong Yanzhou Tiefa Huainan Xuzhou Fuxin Fengfeng Fushun Shitanjing mm Sulfur,% 0.74 0.98 0.67 0.51 0.66 0.85 0.84 0.55 0.55 Table 3-14 Coal Mines with Calorific Values Between 7.01— 21.00MJ/kg Name Kailuan Tiefa Huaibei Xinwen Yima Panjiang JFSE mit sm 1 Qnet. ar 19.19 18.27 18.76 20.00 20.68 20.21 able 3-15 Coal Mines with Calorific Values Between 21.01—24.OOMJ/kg | Name Pingding Yanzhou Huainan Xuzhou Fuxin Shuang Jixi Zaozhua Fushun Tonchu shan yashan ng an Y73UU m\i SE muu mm 1 Qnetar 22.75 23.31 22.25 22.26 21.41 22.29 22.67 23.12 22.87 22.38 Table 3-16 Coal mines with Calorific Values Between 24.01—27.00MJ/kg Name Datong Xishang Yangquan Hegang Luan Pingshuo *|HJ Bilj ms ss w-m Qnet " 26.97 25.90 26.30 24.10 26.80 24.94 Name Feng Jincheng Qitaihe Zheng Shitan Hebi Fenxi 1 Feng Zhou ling ## WN Qnet. ar 24.45 25.96 25.22 25.62 25.88 26.77 24.13 Source: Ministry of Coal Industry 3.1.3 Characteristics of China’s Coal (1) Sulfur Content The proportion of high sulfur coal is believed not very large. The average sulfur content of China’s coal fluctuates around 1%. The sulfur distribution geographically is characterized with the trend that sulfur content of in the southern coal is higher than that of northern coal. But in the northern coal fields, sulfur content increase with the depth of coal seams. From the view point of coal formation periods, coal deposited in -58- the Carbonic period has a higher sulfur content than that deposited in the Jurassic period. Sulfur content is also relevant to coal ranks. As a general principle, sulfur content in low rank coal is usually lower than that of high rank coal in China. That is why sulfur content in anthracite and lean coal is relatively high, compared to other coal. The districts with high sulfur coal reserves are very near each other. Take Hubei CM dfc) province, located in Central China, Guangxi (WE) province, Guizhou (# jl'l'l) province and Chongqing ( SW ) municipality in Southwest for example, almost all the coal in these provinces is high sulfur coal. In the north of China, especially the Northeast, all the coal belongs to low sulfur coal. The average sulfur content in the the Northeast is just 0.36%, much lower than that of the other districts of China. The average sulfur content in the Northwest is 0.58%, also very low. Although the average sulfur content is just 1% in North China, the variation of sulfur content is relatively large and there are some high sulfur coal mines. Sulfur content in the coal deposited in East China fluctuate over a wide range, even though the average sulfur content in that district is not so high. Table 3-17 shows the average sulfur content of coal in the main coal production provinces. The sequence of sulfur content from the lowest to the highest is Heilongjiang UE , Xinjian (Sill) , Anhui ($#) , Shaanxi (R E) , Henan (MW) , Ningxia (WX) , Yunnan (5S) , Inner Mongolia (ftM "Si ) , Hebei (M4b) , Shanxi (lllE) , Shandong (ll|$) and Guizhou (##|) . Sulfur content varies from 0.20%( Heilongjiang HSfctC) to 1.72% (Guizhou @Ui|). Table 3-’ 7 Average Sulfur Content of Coal in 1 he Main Coal Production Provinces Name Helongjiang Xinjiang Anhui Shaanxi Henan Ningxia Sr 11 MW Total (%) 1.19 9.52 2.45 16.17 2.22 3.09 St,d (%) 0.20 0.35 0.42 0.70 0.74 0.75 Name Yunnan Inner Aut Hebei Shanxi Shandong Guizhou TXW f mb iliE lU^k Total (%) 2.40 22.50 1.52 25.84 2.26 5.07 St,d (%) 0.75 0.86 0.92 1.18 1.32 1.72 (2) Ash Content The average ash content for both commercial coal and coal seams in China is over 20%. The ash content of run-mine coals increases with the automation of coal production. Cleaned coal for coking has the lowest ash of just about 10% of average ash in all kinds of commercial coal across China. The average ash of thermal coal in China is over 25% and the ash content of the coal for power generation, with 27%- 28% ash content and sometimes more than 30% or even 40%, is higher than the others. Theoretically, ash content has nothing to do with coal rank. There does exist the fact, - 59 - indicated by statistics, that ash content in low rank coal is usually lower than that of high rank coal in China. Weak caking and non-caking coal have the lowest ash, both below 10%, among the 14 classes of coal of China. For most lignite, ash content is around 20% and long flame coal is similar to lignite. Ash content in other classes of coal changes in a very wide range. Take primary coking coal and anthracite for example, the ash content changes from 10% to 40%, a very big change. There is a relationship between ash content and the geological age in which coal was deposited. Generally speaking, the coal deposited in the Middle-old Jurassic period has relatively low ash content, average ash content is under 10%. Coal deposited in other geological periods varies between 15%—20%. Ash content changes from district to district, from coal field to coal field and from coal mine to mine or even from coal seam to seam in the same coal mine. Shenhua (# ) coal, with average ash below 10%, has the lowest ash content among all the state- owned key coal mines. Datong (J&ClF]) coal ash content is also very low, at just 10.2% in 1997. Jingyuan (#i&) coal mine bureau of Gansu (##) province and Zhalainouer ) coal mine bureau of Inner Mongolia are both low ash coal mines with ash content between 11%^—12%. But in some other coal fields like Zixing ( , Shulan ^ ) , Xinglong ( t^PE) , Shenyang (£fcPB) and Tonghua (iHj-h) , the ash content of commercial coals is even over 30%. Table 3-18 shows the distribution of ash content in China’s commercial coals. The coal with 8%^25% ash is dominant in commercial coal. In addition to cleaned coal for coking, only Datong ( ) , Shenhua (#^) and Ruqigou coal ash content is below 10%. Table 3-18 shows the distribution of ash in China’s commercial coal. It clearly shows that the coal with 1Q%~20% ash content takes a dominant proportion with “low ash coal ” and “medium high ash coaf ’being only a small part. 3 Tab e 3-18 Distribution of Ash in China’s Commercial Coal Ash content (%) <8.00 8.01-15.00 15.01-25.00 25.01-35.00 >35.01 Percentage (%) 5.08 35.32 43.11 11.95 3.74 Source: Ministry of Coal Industry (3) Calorific Value Calorific values have a close relationship with coal rank besides moisture and ash content. Calorific values increase with coal rank. So the calorific value of anthracite is much higher than that of lignite on the basis of the same level of ash content and moisture. For most lignite, Qnetar (calorific value, as received) is near 14.63 MJ/kg and sometimes even under 12.54MJ/kg such as Shulan lignite, Huolinhe (## M) lignite and Shenyang (£fcPB) lignite, which are known for their low heating values. The heating values of Jinchen (##) anthracite and Yangquan ( PBS.) anthracite are both over 24.00MJ/kg. Non-caking coal and weakly caking coal have relatively high heating values for their very low ash contents compared with other — 60 — classes of coal in China. Take Datong (^cM ) coal (non-caking coal ) and Shenhua (##) coal(weekly caking coal) for example, the average calorific value of these two coals is more than 25.09MJ/kg and sometimes even over 29.4MJ/kg. 20.91MJ/kg is the lowest value of these two coals. The coal suitable for coking usually has high heating values even as high as 25.09MJ/kg. The commercial coal with heating value of 24.01 MJ/kg-27.00MJ/kg accounts for more than 40% of all the national commercial coal, and that of 21.01 MJ/kdg-24.00MJ/kg for about more than 28%. The total between them accounts for about 70% of all. That means most commercial coal in China belongs to high heating value or medium high heating value coal. (4) Volatile Matter Volatile matter is an index to describe coal rank. It decreases with coal rank. Low rank coal resources are abundant in China, accounting for about more than 50%. So the average volatile matter of China’s coal is high. According to the statistics, about 30% of coal has volatile matter between 28%-37%, about 25% between 37%-50%, about 20% between 10%-20%. 11% of coal has under 10% of volatile matter and only about 1% of coal has more than 50% of volatile matter. (5) Ash Composition and Fusibility Ash fusibility and ash composition are critical properties to thermal coals for their effect on slagging and fouling. Ash fusibility depends on ash composition to a very large extent. We describe ash fusibility with (1) deformation temperature(DT), (2)softening temperature(ST) and (3) flow temperature. (FT). ST is so commonly used among them that we mean ST while referring to ash fusibilty . Generally speaking, ST decreaces with increases of CaO and Fe203 and increases with A1203. Coals deposited in the Middle-old Jurassic period, like Datong and Shenhua coal, have relatively low ST for their high CaO and Fe203 contents and ST of these coals is just about 1200Cor even lower. Coals deposited in the Carboniferous period usually have higher ST for their low CaO and MgO content in ash. 3.2 Status and Prospect of Coal Utilization 3.2.1 The Status of Coal Utilization China is a very large country both in energy production and consumption at the same time. The statistics reveal that total national coal output reached 1250.OMt, being No.l in the world. Crude oil reached 161.OMt, being No.5 in the world, power generation reached 1167.0 TWh, being No. 2 in the world, and natural gas reached 22.38Gm 3, being No. 21 in the world at the end of 1998. Total energy production made China the third largest energy production country in the world. Table 3-19 shows the energy production of China from 1949 to 1998. -61 - Table 3-19 Energy Production from 1949 to 1998 Electricity Raw Coal Crude Oil Natural Gas Year Total Output Hydropower (Mt) (Mt) (Gm3) (TWh) (TWh) 1949 32.0 0.12 0.007 4.3 0.7 1950 43.0 0.20 0.007 4.6 0.8 1951 53.0 0.31 0.008 5.7 0.9 1952 66.0 0.44 0.008 7.3 1.3 1953 70.0 0.62 0.011 9.2 1.5 1954 84.0 0.79 0.015 11.0 2.2 1955 98.0 0.97 0.017 12.3 2.4 1956 110.0 1.16 0.026 16.6 3.5 1957 131.0 1.46 0.070 19.3 4.8 1958 270.0 2.26 0.110 27.5 4.1 1959 369.0 3.73 0.290 42.3 4.4 1960 397.0 5.20 1.040 59.4 7.4 1961 278.0 5.31 1.470 48.0 7.4 1962 220.0 5.75 1.210 45.8 9.0 1963 217.0 6.48 1.020 49.0 8.7 1964 215.0 8.48 1.060 56.0 10.6 1965 232.0 11.31 1.100 67.5 10.4 1966 252.0 14.55 1.340 83.5 12.6 | 1967 206.0 13.88 1.460 77.4 13.1 1968 220.0 15.99 1.400 71.6 11.5 1969 266.0 21.74 1.960 94.0 16.0 1970 354.0 30.65 2.870 115.9 20.5 1971 392.0 39.41 3.740 138.4 25.1 1972 410.0 45.67 4.840 152.4 28.8 1973 417.0 53.61 5.980 166.8 38.9 1974 413.0 64.85 7.530 168.8 41.4 1975 482.0 77.06 8.850 195.8 47.6 1976 483.0 87.16 10.100 203.1 45.6 1977 550.0 93.64 12.121 223.4 47.6 1978 618.0 104.05 13.730 256.6 44.6 1979 635.0 106.15 14.510 282.0 50.1 1980 620.0 105.95 14.270 300.6 58.2 1981 622.0 101.22 12.740 309.3 65.5 1982 666.3 102.12 11.930 327.7 74.4 1983 714.5 106.07 12.210 351.4 86.4 1984 789.2 114.61 12.420 377.0 86.8 -62 - Electricity Raw Coal Crude Oil Natural Gas Year Total Output Hydropower (Mt) (Mt) (Gm3) (TWh) (TWh) 1985 872.3 124.89 12.930 410.7 92.4 1986 894.0 130.69 13.760 449.5 94.5 1987 928.1 134.14 13.890 497.3 100.0 1988 979.9 137.05 14.260 545.2 109.2 1989 1054.2 137.67 15.049 584.8 118.3 1990 1079.9 138.31 15.298 621.2 126.7 1991 1087.4 140.99 16.073 677.5 124.7 1992 1116.4 142.10 15.788 753.9 130.7 1993 1149.7 145.24 16.756 839.5 151.8 1994 1239.9 146.08 17.559 928.1 167.4 1995 1360.7 150.05 17.947 1007.0 190.6 1996 1397.0 157.33 20.114 1081.3 188.0 1997 1372.8 160.74 20.910 1134.5 196.0 1998 1250.0 161.00 22.380 1167.0 200.1 Source: China Energy Annual Review Table 3-20 is Primary energy output and mix from 1949 to 1998. Table 3-20 Primary Energy Output and Mix from 1949 to 1998 Year Total Output Percentage of Total Output % (Mtce) Raw Coal Crude Oil Natural Gas Hydropower 1949 23.74 96.3 0.7 3.0 1950 31.74 96.7 0.9 2.3 1951 39.03 97.0 1.1 1.9 1952 48.71 96.7 1.3 2.0 1953 51.92 96.3 1.7 2.0 1954 62.62 95.8 1.8 2.4 1955 72.95 95.9 1.9 2.2 1956 82.42 95.3 2.0 2.7 1957 98.61 94.9 2.1 0.1 2.9 1958 198.45 97.1 1.6 0.1 1.2 1959 271.61 97.0 2.0 0.1 0.9 1960 296.37 95.6 2.5 0.5 1.4 1961 212.24 93.5 3.6 0.9 2.0 1962 171.85 91.4 4.8 0.9 2.9 1963 170.09 91.1 5.4 0.8 2.7 1964 172.32 89.1 7.0 0.8 3.1 -63- Year Total Output Percentage of Total Output % (Mtce) Raw Coal Crude Oil Natural Gas Hydropower 1965 188.24 88.0 8.6 0.8 2.6 1966 208.33 86.4 10.0 0.8 2.8 1967 174.94 84.1 11.3 1.1 3.5 1968 187.15 83.9 12.2 1.0 2.9 1969 231.04 82.2 13.5 1.1 3.2 1970 309.90 81.6 14.1 1.2 3.1 1971 352.89 79.3 16.0 1.4 3.3 1972 377.85 77.5 17.3 1.7 3.5 1973 400.13 74.4 19.2 2.0 4.4 1974 416.26 70.8 22.3 2.4 4.5 1975 487.54 70.6 22.6 2.4 4.4 1976 503.40 68.5 24.7 2.7 4.1 1977 563.96 69.6 23.7 2.9 3.8 1978 627.40 70.3 23.7 2.9 3.1 1979 645.62 70.2 23.5 3.0 3.3 1980 637.35 69.4 23.8 3.0 3.8 1981 632.27 70.2 22.9 2.7 4.2 1982 667.82 71.2 21.9 2.4 4.5 1983 712.70 71.6 21.3 2.3 4.8 1984 778.55 72.4 21.1 2.1 4.4 1985 855.46 72.8 20.9 2.0 4.3 1986 881.24 72.4 21.2 2.1 4.3 1987 912.66 72.6 21.0 2.0 4.4 1988 958.01 73.1 20.4 2.0 4.5 1989 1016.38 74.1 19.3 2.0 4.6 1990 1039.22 74.2 19.0 2.0 4.8 1991 1048.44 74.2 19.1 2.0 4.7 1992 1072.56 74.3 18.9 2.0 4.8 1993 1110.59 74.0 18.7 2.0 5.3 1994 1187.29 74.6 17.6 1.9 5.9 1995 1290.34 75.3 16.6 1.9 6.2 1996 1315.57 74.8 17.1 1.9 6.2 1997 1324.10 74.1 17.3 2.1 6.5 1998 1240.00 72.0 18.5 2.4 7.1 note: (1). Coal equivalent conversion rate: coal 0.714t/t; crude oil 1.43t/t; natural gas 1.33t/1000m3; hydropower is calculated according to the annual coal consumption for thermal power generation. (2). Hydropower included nuclear power in 1994~1998. — 64 — Table 3-21 shows the primary energy consumption and mix from 1952 to 1998. Table 3-21 Primary Energy Consumption and Mix from 1952 to 1998 Total Percentage of Total Primary Energy Consumption % Year Consumption (Mtce) Raw Coal Crude Oil Natural Gas Hydropower 1952 46.95 95.00 3.37 0.02 1.61 1953 54.11 94.33 3.81 0.02 1.84 1954 62.34 94.33 4.33 0.02 2.20 1955 69.68 92.94 4.91 0.03 2.12 1956 88.00 92.73 4.83 0.03 2.41 1957 96.44 92.32 4.59 0.08 3.01 1958 175.99 94.62 3.92 0.06 1.40 1959 239.26 94.68 4.05 0.14 1.13 1960 301.88 93.90 4.11 0.45 1.54 1961 203.90 91.31 5.47 0.94 2.28 1962 165.40 89.23 6.61 0.93 3.23 1963 155.67 88.93 7.20 0.81 3.06 1964 166.37 87.97 8.04 0.73 3.26 1965 189.01 86.45 10.27 0.63 2.65 1966 202.69 86.24 10.17 0.67 2.92 1967 183.28 84.77 10.89 0.84 3.50 1968 184.05 83.79 12.09 0.76 3.36 1969 227.30 81.93 13.76 0.82 3.49 1970 292.91 80.89 14.67 0.92 3.53 1971 344.96 79.19 16.00 1.44 3.37 1972 372.73 77.51 17.17 1.73 3.59 1973 391.09 74.84 18.58 2.03 4.55 1974 401.44 72.14 20.72 2.49 4.65 1975 454.25 71.85 21.07 2.51 4.57 1976 478.31 69.91 13.00 2.81 4.28 1977 523.54 70.25 22.61 3.08 4.06 1978 571.44 70.67 22.73 3.20 3.40 1979 585.88 71.31 21.79 3.30 3.60 1980 602.75 72.15 20.76 3.10 3.99 1981 594.47 72.74 19.96 2.79 4.51 1982 620.67 73.67 18.91 2.56 4.86 1983 660.40 74.16 18.14 2.44 5.26 1984 709.04 75.27 17.45 2.37 4.91 1985 766.82 75.81 17.10 2.24 4.85 — 65 — Total Percentage of Total Primary Energy Consumption % Year Consumption (Mtce) Raw Coal Crude Oil Natural Gas Hydropower 1986 808.50 75.63 17.20 2.26 4.71 1987 866.32 76.21 17.02 2.13 4.64 1988 929.97 76.17 17.05 2.06 4.72 1989 969.34 75.80 17.20 2.10 4.90 1990 987.03 76.20 16.60 2.10 5.10 1991 1037.83 76.10 17.10 2.00 4.80 1992 1091.70 75.70 17.50 1.90 4.90 1993 2259.93 74.70 18.20 1.90 5.20 1994 1227.37 75.00 17.40 1.90 5.70 1995 1311.76 74.60 17.50 1.80 6.10 1996 1388.11 75.00 17.50 1.60 5.90 1997 1381.73 71.50 20.40 1.70 6.20 1998 1360.00 71.60 19.80 2.10 6.50 note: as same as table 3-20. Source: China Energy Annual Review All these tables and figures illustrate clearly that coal has been the main energy in China for a long time albeit the percentage of coal in the China’s primary energy mix has been reduced from 90% in 1951 to 75% in 1996 and to 71.60 of 1998. The dominant position of coal in primary energy has not changed. In 1998, coal, crude oil, natural gas and hydropower accounted for 72.0%, 18.5%, 2.4% and 7.1% of total primary energy production respectively, and 71.6%, 19.8%, 2.1% and 6.5% in primary energy consumption. Coal has been and will be the main energy of China in the future with the consideration of the characteristics of energy resources and status of technical and economical development. Coal was used in almost all sectors in China. Table 3-22 shows the details. The amount of coal used for power generation has been No.l, accounting for about 35% of the total coal consumption, No. 2 has been for coking, accounting for about 14%. Nonmetal mineral products, ferrous metals and residential use have been from No. 3 to No. 5 with the percentages of 9.19%, 9.10% and 8.79% respectively in 1997. The coal used in these five sectors accounted for more than 76.1% of total coal consumption. They are the main users of coal in China. Chemical raw materials and products together with steam and hot water production also consumed a lot of coal every year. The above coal consumption mix has been lasted in China for many years. More coal will be used for power generation in the future among these different sectors. — 66 — Table 3-22 Coal Consumption Mix 1985 1990 1995 1997 Amount % Amount % Amount % Amount % (Mt) (Mt) (Mt) (Mt) Agriculture 22.09 2.71 20.95 1.96 18.57 1.35 19.27 1.38 Industry 586.13 71.83 810.91 76.85 1175.71 85.40 1216.71 87.38 Of which, power 164.41 20.15 272.04 25.78 444.40 32.28 489.79 35.17 generation steam and hot 14.62 1.79 29.96 2.84 58.87 4.28 62.45 4.48 water production coking 73.04 8.95 106.98 10.14 183.96 13.36 192.97 13.86 Chemical raw 51.90 6.36 72.41 6.86 108.04 7.85 94.71 6.80 materials ferrous metals 65.48 8.02 80.90 7.67 129.21 9.38 126.73 9.10 nonmetal mineral 86.14 10.56 99.63 9.44 134.24 9.75 127.92 9.19 products Construction 5.32 0.65 4.38 0.42 4.40 0.32 3.83 0.28 Transportation 23.07 2.83 21.61 2.05 13.15 0.96 14.31 1.03 Residential 156.24 19.15 167.00 15.83 135.30 9.83 122.38 8.79 Commercial 7.38 0.90 10.58 1.00 9.77 0.71 8.63 0.62 Others 15.80 1.94 19.80 1.88 19.87 1.44 7.35 0.53 Total 816.03 100 1055.23 100 1376.78 100 1392.48 100 Source: China Energy Annual Review The characteristics of coal consumption in China can be listed as follows: (1) Only about 22% of raw coal came through coal preparation. That means about 1000 Mt coal, with 22% average ash content, was consumed by the end-coal users each year. This resulted in transportation of about 200 Mof coal refuse from coal mines to end users. (2) Currently, about 800 Mt of coals have to be transported over long distances. In 1996, 721 Mt of coal, which accounted for 44.6% of the total amount transported, was by railways. The average transportation distance was 562km. 93 Mt of coal, which accounted for 27.8% of the total, was by water ways. The average distance was 2696km. All these 800Mt of coal were transported in the open air and the estimated coal dust emission into the atmosphere was more than 3.5Mt. (3 ) More than 80% of coal was used for direct combustion in China. This situation will last for years even though the percentage of coal used for direct combustion will decrease a little year by year. For example, in 1990, 87.21% of coal was combusted directly, 86.59% in 1993 and 85.41% in 1994, average 0.45% reduction annually was reached. Large volume of coal direct combustion was the important reason that -67- air pollution in China was characterized by “coal-smoke type pollution ”. The emission of S02, dust, C02 and NOx from coal combustion was so large that they accounted for more than 80%, 60%, 71% and 67%, respectively. (4) Low energy efficiency. Energy utilization efficiency of China is 10%~20% lower than that of the developed countries. There exists a greater gap in the unit energy consumption of the main energy consuming products compared with advanced international levels. Table 3-23 shows the details. The comparable energy consumption was 1034kg of coal(coal equivalent) for It of steel making in China, but the advanced international level was just 629kg of coal equivalents, 64.45% higher. Comprehensive energy consumption for It of cement in China was 77.6% higher than that of the advanced international level, being 201 kg of coal equivalent in China and 113.2kg for the international level. Comprehensive energy consumption for synthetic ammonia was 38.7% larger than that of the international level. In 1995, the net coal consumption for power generation was 412gce, 50~80g higher than that of the advanced countries. There are 166000 industrial kilns and 499000 industrial boilers in China. Average capacity for these is 2.4t. 70% of them are layer combustion boilers with 55%~60% average heating efficiency. There are 40 million fans and pumps in China. The average efficiency of them is just 75%, 10% lower compared with advanced countries. Table 3-23 Energy Consumption for Main Industrial Products in China and Abroad (1990) (1) — (2) X100% I National Average Advanced Countries (1) (2) Full energy consumption for 44.0 55.0 — 20.0 Mining (KWh/t) Net fuel consumption for 427 325 + 31.4 power generation ( gce/KWh) Full energy consumption for 1034 629 + 64.4 steel-making (kgce/t) Full energy consumption for 1705 1359 +25.5 raw copper (kgce/t) Electricity consumption for 14916 12956 + 15.1 S electrolytic aluminium (kWh/t) Full energy consumption for 21.91 19.46 +12.6 petroleum refinery (kgce/t) Full energy consumption for 1290 930 + 38.7 synthetic ammonia (kgce/t) Full energy consumption for 201.0 113.2 + 77.6 cement (kged/t) Electricity consumption for 2129 3458 -38.4 cotton yarn (kWh/t) Electricity consumption for 2280 1450 + 57.2 short fibers (kWh/t) - 68 - 3 .2.2 Coal—the Dominant Energy of China in the Future Coal has taken the dominant position in the primary energy mix of China for many years, compared with petroleum, natural gas, hydropower and nuclear power. Coal accounts for 73.4%, hydropower 22.2%, petroleum and natural gas 5.7% in the primary energy resources of China. The fossil fuel reserves consist of 94.3% of coal, 5.7% of petroleum and natural gas. The energy supply for the growth of national economy should be on the national energy resources. So coal has been and will be the main energy of China with the consideration of energy resource characteristics and technical development. The basic energy demand plan, released in 1997 by Chinese Academy of Engineering on the consideration of the target of Chinese economy development, the increase in population and the reform of industries, indicated that the rate of GDP’s growth is 9% from 1990 to 2000, 8% from 2000 to 2010, 5.9% from 2010 to 2020, 3.3% from 2020 to 2050, and the annual average energy save rate is 5.8%, 4.64%, 3.01% and 2.56% in the above periods respectively. Table 3-24 gives the details. The primary energy demand in 1990 is 1240Mt, 1660Mt in 2000, 2270Mt in 2010, 2900 in 2020 and 3570 in 2050. The dominant position of coal in the primary energy mix of China will not have much change even by the end of 2050. Table 3-24 Basic Program for Chinese Energy Development ( 1990 — 2050) 1990 ¥ 2000 ¥ 2010 ¥ 2020 ^ 2050 ¥ GDP (Gyuan) 1754 4152 8936 15840 41560 GDP Growth Rate Per Year 9.0 8.0 5.9 3.3 (%) (1990-2000) (2000-2010) (2010-2020) (2020-2050) Population (G) 1.143 1.30 1.42 1.49 1.54 Population Growth Rate Per — 1.30 0.89 0.48 0.11 Year (%) Energy Consumption Per Capita (tee /Year) 1.085 1.278 1.599 1.946 2.318 Energy Consp. For GDP (tee / Thousand Yuan) 70.695 39.98 25.40 18.31 8.59 Average Energy Saving — 5.87 4.64 3.01 2.56 Rate(%) Demand of Primary Energy 1240 1660 % 2270 % 2900 % 3570 % (Mtce) Of Which: Coal 1070 64.46 1337 58.90 1620 55.86 2140 59.94 Oil 240 14.46 310 13.66 320 11.03 150 4.20 Natural Gas 39 2.35 136 5.99 220 7.59 170 4.76 Hydro Power 79.7 4.80 172.5 7.60 226 7.79 280 7.84 Nuclear Power 3.98 0.24 40 1.76 109 3.76 228 6.39 New Energy 230 13.86 270 11.89 399 13.76 580 16.25 Annual Growth Rate of — 2.96 3.18 2.80 0.69 Energy Demand (%) Elasticity of Energy Consp. 0.329 0.398 0.475 0.209 Source: Chinese Academy of Engineering - 69 - 3.3 Main Problems Related to Coal Utilization There exist a series of problems to solve regarding the exploitation and utilization of coal. The problems such as low coal preparation rate, low utilization efficiency and uneven production and consumption of coal have been discussed before. This section will discuss coal transportation and environmental problems from coal. 3.3.1 Transportation of Coal The distribution of coal production and consumption in China is very uneven. Most of coal is produced in the" 3 Wesf’regions (namely, Shanxi ill#, Shaanxi $£#, and the west Inner Mongolia F*9 ) . But most of coal is consumed in the east coastal districts. " Western coal moving to Eastern and "Northern coal moving to Southern " are the consequence of this uneven distribution. The net outing going traffic of coal in Shanxi and Inner Mongolia amounted to 272.7 Mt, constituting 60.4% of inter provincial total net traffic volume of the wholw country in 1996. The southeast coastal provinces and cities had 313.0Mt of net coal input and that accounted for 74.1% of the inter-provincial net input traffic of the whole country. In 1995, 674 Mt of coal, which was 71.6% of total coal transportation, was transported by railway, 154Mt by water way accounting for 27.8% and 113Mt by road accounting for 12.0%. 42.3% of the total transportation capacity of railway were used for coal transportation. The transportation industry developed largely during "the Eighth- five ” and " the Ninth-five ” periods. Many railways and ports were constructed mainly for coal transportation. So the capacity of transportation for coal was improved greatly. (1) Coal Transportation by Railway Railway is the most important means for coal transportation. In 1996, 721Mt coal were transported by railway, an increase of 6.9% compared with that of 1995. The coal out of the “3 West” regions was 220.4Mt, increasing by 4.0% than 1995. Currently, Shitai -vfcJiO line, Taijiao line, Jingyuan (dbS - #1?) line, Shada ('£!? line and Tongpu line are fully operational. Daqin - # M & ) line is an electric paired railway which was constructed specially for coal transportation. It’s annual capacity is lOOMt. Only 58.3Mt of coal was through this railway in 1996, so there exists great potential. Coal from " 3 West ” regions mainly comes to the southeast coastal regions where coal is in short. In 1995, 73.1Mt coal came to East China District by Jinghu (db^ - _h'/9) line, Jingguang (itM - 'T4'H) line, Longhai (i&zr# - line and Shangfu (#Jx - SPH) line, 49.5Mt coal came to Central South District by Jingguang (dbSrr^'H) line and Jiaozhi (#{$ - line, 20 Mt coal reached Northeast District by Jingshen (dbS - line and Jingtong (jbJjt - iEiX) line. 158.4Mt coal was delivered to the - 70 - “five electricity nets" , namely Northeast electricity net, North China electricity net, East China electricity net, Central China electricity net and Shandong ( lU S ) electricity net. (2) Coal Transportation by Water Way “Northern coal moving to Southern areas” and coal export are mainly dependent on sea transportation. Qinhuangdao ( SSil S ) port, Qingdao ( # % ) port, Tianjin (^$) port, Rizhao ( El $0 port and Lianyungang port, which are all in the north of China, are the main coal loading ports. Newly constructed Jingtanggang (SiS) port is also a coal loading port. The turnover volume of coal through these six ports reached 122.lMt in 1995, of which, Qinhuangdao (fUMS) port 64.9Mt, accounted for 53.1%, Tainjin (7^#) port 28.3 Mt, accounted for 23.1%, Rizhao ( R ) port 12.0Mt, accounted for 9.9%. Besides sea transportation, Yangtze river and the Grand Canal are also used for coal transportation. The turnover volume of coal in Nanjing ( WJjC) , Wuhu (^E'ViM) , Hankou ($.□ ) and Zhichen (%%) , which are distributed along the Yangtze river, reached 10.4Mt, Xuzhou (#3N) and Pizhou (3$ 3H ) along the Grand Canal, reached 13.8Mt in 1995. (3) Coal Transportation by Road Road played an important role in the transportation of coal output from the “ 3 West" regions. There are 12 roads for coal transportation in “3 West" regions. Datong - Beijing (;k:|R — rlbjjC ) , Taiyuan - Shijiazhuang ) , Changzhi - Handan ( ) , Datong - Zhangjakuo ( □ ) , Yuci - Xingtai ( — Sn ) , Changzhi - Anyang ( ) , Jinchen - Jiaozuo ( ## — ) , Zuoqun - Handan ( IxM. — ## ) , Gaoping -Hebi ( — IIH ) , Yangchen - Jinan ( PB# — SFlS ) , Jinchen - Qinyang ( ## — '/E PB ) are all very important coal transportation roads. 28.5Mt coal reached Hebei (Mdb) province, Beijing city, Tianjing (^#) city, Shandong ( lUS) province, Henan (MS ) province and North Anhui ( ) by these roads. Table 3-25 shows the main information of coal transportation from 1990 to 1996. Table 3-26 shows coal transportation from Shanxi (lUB) . Table 3-27 shows coal transportation along the coast and inland rivers(l 990-1997). - 71 - Table 3-25 Coal Transportation (1990-1996) 1990 1995 1996 | Railway | 1 Coal traffic,Mt 628.7 673.6 720.6 I Percentage of total traffic, % 43.0 42.3 44.6 Turnover volume of coal, Mt-km 344640 377718 404847 Percentage of total, % 32.5 29.4 31.3 Average distance, km 548 561 562 Waterway Coal traffic,Mt 78.4 90.7 92.9 Percentage of total traffic, % 31.2 27.2 27.8 Turnover volume of coal, Mt-km 159325 274678 250339 Percentage of total, % 15.1 18.2 17.0 Average distance, km 2032 3028 2696 Source: State Statistical Bureau Table 3-26 Coal Transportation from Shanxi (1990-1996) 1990 1995 1996 Total 184.38 211.89 220.40 Batong-Qimhuangdao — S ) 33.19 54.45 58.33 Shijiazhuang-Taiyuan 46.73 49.13 48.62 Beijing-Baotou 44.51 40.01 40.09 Taiyuan-Jiaozuo ( Jil — M fj= ) 32.71 35.19 36.91 | Beijing-Yuanping (:jb5C —S3?) 13.12 14.42 14.04 Source: Ministry of Railway Table 3-27 Coal Transportation of Main Ports in Coast and Inland Rivers( 1990-1996) 1990 1995 1. Loading at the north seaports 76.14 119.85 Qinhuangdao (SHHS) 51.88 64.88 Tianjin 3.22 28.25 Rizhao ( 0 M ) 8.69 12.04 Qingdao (#%) 6.52 6.69 Lianyungang 5.83 7.99 2. Loading at Changjiang ports 14.45 13.76 Pukou (ffiP) 7.84 5.36 Hankou (P ) 4.04 4.41 Yuxikou ) 1.57 2.11 Zhicheng (%#) 1.00 1,88 3. Loading at the Grand Canal ports 5.11 10.37 - 72 - 1990 1995 Pizhou ($P^H) 3.19 3.73 Wanzhai 1.92 6.64 4. Unloading at the southern seaports Shanghai (JLW) 40.94 42.09 Guangzhou (f^'I'l) 9.35 16.42 Ningbo (f:&) 5.93 10.46 Source: Ministry of Communications 3.3.2 Environmental Issues from Coal Utilization At present, there are three global air environmental problems in the world which have aroused public concern: (1) C02 and CH4 produce Greenhouse effects; (2) S02 NOx emission cause acid rain and (3) damage to the Ozone Layer ”. In addition to the damage of Ozone layer; the air pollution is closely related to energy utilization, especially coal consumption in China. The emission of waste gas, smoking dust, S02 and C02 has been increasing with the increasing of coal consumption year by year (Table 3-28). More than 80% of coal is used as fuel to combust directly or indirectly. About 77% of national smoking dust emissions, over 90% of national S02 emission and 80% national C02 emission are caused by coal combustion (Table 3-29). Coal consumption is the main air pollution source. Among the smoking dust and S02 emission by coal combustion, coal power generation and industrial boiler are the main sources of pollution, accounting for 80% and 84% of total emissions respectively. Table 3-28 Coal Consumption anc Air Pollu lion 1991 1992 1993 1994 1995 Total energy consumption. Mtce 1037.8 1091.7 1159.9 1227.4 1290.0 Fossil energy consumption. Mtce 988.0 1038.2 1099.6 1157.4 1213.9 Coal consumption. Mt 1106.0 1155.0 1209.2 1285.3 1377.0 National Air Pollution Waste gas emission Tm3 10.14 10.47 10.96 11.36 12.34 Smoke dust emission Mt 13.14 14.14 14.16 14.14 14.78 SO? emission Mt 16.22 16.85 17.95 18.25 18.91 CO? emission Mt 537.4 — — 629.6 633.8 Air Pollution by Coal Combustion Coal smoke gas emission Tm3 8.60 8.98 9.41 10.00 10.54 Coal smoke dust emission Mt 9.40 9.82 10.28 10.93 11.52 SO? emission Mt 14.86 15.52 16.25 17.27 18.21 CO? emission Mt 431.1 450.17 471.30 500.96 528.12 - 73 - Table 3-29 Pollution Percentage by Coal Combustion Percentage % 1991 1992 1993 1994 1995 Coal smoke gas /total 84.81 85.77 85.86 88.03 85.41 Coal smoke dust /total 71.54 69.45 72.60 77.30 77.94 SO? by coal /total 91.62 92.11 90.53 94.63 96.29 C02 by coal /total 80.21 — — 79.57 83.33 Source: National Environmental Protection Agency - 74 - - 76 - 3.4 Significance of Coal Hydrogasification in China China has been the largest country for coal production and consumption in the world for many years. Coal has been the most important primary energy resource in China’s economical and social development. In 1996, 76% of national electric power energy was produced by coal. Coal provided 75% of the national industrial fuel, 60% of the national chemical raw material and 80% of the national domestic fuel. Coal production, transportation and utilization create thousands of employment opportunities. It has been proved that coal will be the main energy in the future in China considering energy resource characteristics and technical development as well as the world energy situation. The environmental impact from coal has become more and more serious with the large volume of exploitation and utilization in China. This has restricted the economical and social development. However, it is impossible to decrease the coal consumption in the period examined. The only feasible way is to develop clean coal technology. So clean coal technology is the future of energy use in China. There are 4 different technology areas in China’s clean coal technology system. The four technology areas are: (1) Coal processing technology — advanced coal preparation technology, coal briquetting technology and coal water mixture (CWM); (2) Coal combustion and post-treatment technology; (3) Coal conversion technology — coal gasification, liquefaction and IGCC; (4) Coal mining pollution and control technology — coal bed methane exploitation and utilization, flue gas clean-up, comprehensive utilization of fly ash, comprehensive utilization of coal refuse, industrial boilers and kilns. In China’s clean coal programme, great attention is paid to coal gasification and coal liquefaction. In addition to the source technology of clean coal utilization, coal gasification has great significance for improving gas structure of China’s cities. Coal has been used directly by China’s residents for many years, which not only wastes resources but also creates serious environmental pollution. The main aim of coal hydrogasification is increasing CH4 composition. The significance of the hydro gasification process in China is as follows: (1) In 1996, there were 37.35 million residents in urban areas throughout the country using coal gas, 93.49 million residents using LPG and 16.56 million residents using natural gas. Only about 12% of the total population in the whole country is using gas. China is rich in coal and poor in oil and natural gas. It is obvious that if the LPG and natural gas consumption increase dramatically, it will be necessary to import on a large scale. This is not suitable to the practical conditions of China. Town gas should be enhanced. Hydrogasification technology is an advanced coal - 77 - utilization process and produces CH4 directly. So it is favourable to improve the gas structure of China. (2) CH4 is clean and efficient energy and does not produce smoke dust and S02, making “coal smoke type ” pollution and acid rain avoidable. At the same time, C02 produced by CH4 is only about half of that by coal. It is favourable to environmental protection. (3) Hydrogasification technology can be used by transforming the old town gas stations, such as those in Beijing and Shanghai. The gas heating value and production capacity should be increased. (4) To build a number of large scale mine mouth hydrogasification stations, such as those in Shenghua and Shanxi province, will not only supply the local users but also allow for transportation to the coastal regions through available and new pipes. This will avoid “Northern coal moving to Southern areas” and “ Western coal moving to Eastern areas”. - 78 - 4. Evaluation of Mining Areas Suitable for Hydrogasification 4.1 Selecting the Mining Areas Suitable for Hydrogasification The criteria for selecting the mining areas suitable for hydrogasification are chiefly based on coal applicability, coal reserves, mining area production and construction circumstances and the external environment. 4.1.1 Coal Applicability It is very important to consider the specific properties of coal and its influence to gasify when the candidate coal mine for hydrogasification is selected. This mainly includes the reactivity of coal, caking property, clinkering property, thermal stability, moisture, ash and sulphur content. (1) Reactivity of coal: This will directlt influences the production quotas such as hydrogen and oxygen consumption, gas component, carbon content of char, gas producing rate and thermal efficiency. It is best to focus on reactive young coal, for example, brown coal, subbituminous coal and young bituminous coal, when selecting the candidate mine for hydrogasification. (2) Caking property of coal: Bituminous coal with high caking property has a negative influence on overall gasification. When it is heated to a certain temperature, it will reach a plastic state and then stick together. It is best to focus on coal with low caking property for hydrogasification, otherwise possibly needs broken the caking property. (3) Clinkering property of coal: This is the ability of the mineral matter of coal to melt owing to the softening of ash content in the gasification forming slags. The coal that is easy to slag is unsuitable for hydrogasification. The usual requirement of the solid slagging gasification technique is ST>1250°C. The highest operation temperature of the hydrogasification technique (ARCH) does not surpass 1000°C according to Japanese. So this technology is not adversely affected by the clinkering property of coal. (4) Thermal stability of coal: Since the ARCH technique uses fine coal to gasify, there is no special requirement for the thermal stability of coal. (5) Mechanical strength of coal: The same as above. (6) Moisture, ash and sulphur content in coal: The moisture in the raw coal feedstock has a direct influence on steady operation and thermal efficiency in the gasification process. The coal moisture should be below 5%, in order to help make the coal to continue flowing freely during smashing, sieving, carrying and feeding because ARCH technique involves entrained flow bed gasification. Ash in raw coal often is one of the - 79 - major factors affecting normal operation during gasification. The ash in coal causes low gasification efficiency and waste of gasifier production capacity as well as affecting influences the carbon content of slag and is also an inert component. It is best to focus on low ash content for hydrogasification as much as possible. Sulphur in coal changes, chiefly H2S and small amounts of COS and CS2 etc. So coal with low sulfur content should be selected for hydrogasification if possible. 4.1.2 Coal Mine Reserves and External Environment When constructing large-scale gasworks in mining areas, in addition to the suitability for hydrogasification, there are many other factors that should be considered such as a certain scale of coal reserves, sufficient water resources and power supply, certain industry foundation, good transport facilities, and qualified workers. Using the criteria, 10 mining areas have been selected as coal base candidates, see (Table 4-1). - 80 - Table 4 - 1 Cconditions Compare of the Candidate Mine Area mine area Shenhua Yaojie Dayan Zhalainuoer Pingzhuang Y anzhou Datong Hami Ulumuqi Wuda (##) (8«) (*E) (¥E) u&$) (~iii) Coal class non-caking coal long flame coal brown coal brown coal brown coal gas coal weakly non-caking weakly caking bituminous caking coal coal coal coal hydrogasification fine fine fine fine fine fine fine fine fine medium resources (100 Mt) 2200 5 36 80 17 40 40 15 6.9 5.1 water resources lack sufficient sufficient sufficient medium medium medium lack lack lack power supply sufficient sufficient sufficient sufficient sufficient sufficient sufficient sufficient sufficient sufficient industry foundation medium medium medium medium medium good good medium medium medium transportation Railway, Railway, Railway, Railway, Railway, convenient convenient Railway, Railway, railway highway highway highway highway highway highway highway qualified workers sufficient medium medium medium medium sufficient sufficient medium medium medium natural gas pipe net near far far Far far far nearer nearer near near 4.2 Basic Circumstances of Candidate Mining Areas and Evaluation of Hydrogasification Applicability 4.2.1 Shenhua (##) Mining Area (1) Location and transportation It is located in northern Shaanxi Province and Yikezhao ) league of Inner Mongolia (F*3 K"6* ) . It is 850 km to the north of Xian (M$ ) , 260 km north from Baotou ( 'S* Sk ) . The Baotou-Shenmu ( ^ Sk ~ # 7jc ) railway, 171 km long, through the central section of the mining area. The railway by Shenmu (#7^) toward Yanan (5$$) is under construction, and upon completion, it can be directly arrived in Xian (@S) from Baotou () though Shenmu (#7^) and Yanan (1$ $ ) . At present, Baoshen ( pk — 7jO railway has become the major thoroughfare to carry coal outside the mining area. It connects with the Jingbao (ihM — Q^k) or Daqin — HISS) railway that run directly to Qinhuangdao (#A 6) port and Tianjin (7o$) port for water transport export or sale of coal inside each southern port city. It is 1194 km from Shenmu (#7|0 to Qinhuangdao Sj ) port and 988 km from Shenmu (#7fc) to Tianjin (HJILS j ) port. The second way of carrying coal is from Shenmu (#7^) along Shuozhou ($U'I'|) in Shanxi (ill 15) Province to Huanghua (##) port in Hebei (Mdb) Province, it is 820 km long. The section from Shenmu ( # 7fc ) to Shuozhou ( $1 j'H ) has been completed and is open to traffic at present. And the section from Shuozhou ) to Huanghua (jit # ) will be completed in 2000, the same time construction of Huanghua (]Nr#) port will be completed. There is a main road from Baotou Sk) to Xian (Hz&c) runs through the whole mining area from north to south, and there is also a road from Fugu 0##) to Xinjie (#f#) through the mining area from east to west. The general topographic feature of the mining area is always hills. Water is scarce. According to the development program and water supply requirements, river and Quaternary waters can be used. Electric power is supplied chiefly from the Hubao (Of —^,^k) electrical network at present. (2) Coal measures and coal seam The coal stratum belongs to Yanan formation of the middle and low Jurassic system, Mesozoic. There are 5-6 layers of workable coal. Among them, the average thickness of 2# layer is 5m, the average thickness of 3# is 4.5m and the average thickness of 4# is 3.3 m. The coal seam is buried shallow in the mining area. Part of it can beopen-cut, but most parts must mined underground. (3) Production and construction of the mining area The mining area was developed by the Shenghua () Group, it has more than 220 -82- billion ton of coal reserves that belong to the special large steam-coal mine area of China. Each main mine possesses reserves generally of 0.5-1.0 billion tons. At present there are production mines such as Majiata ( ) , Wujiata ( ) , Wulanmulun (-^7 JrL/fcffc ) , Shangwan ( Jb# ) , Bulianta ( ) , Guojiawan (##(#) , and Halagou (Pq ) . There are also Shigetai o' ) and Huojitu (mines to be built. The designed capacity in each mine is respectively: Majiata(open-cut) (SSin) , 0.6 Mt/a; Wujiata(open-cut) (iKSlCitt) , 0.6 Mt/a; Wulanmulun , 0.3 Mt/a; Shangwan ( Jz#) , 3.0 Mt/a; Bulianta , 3.0 Mt/a; Guojiawan (#^#) , 0.3 Mt/a; Halagou (Pq££/£j) , 0.3 Mt/a; Shigetai □ ) , 3.0 Mt/a; Daliuta , 6.0Mt/a; and Huojitu, () 5.0 Mt/a. Most mines have been built up but have not gone into operation or reached to production capacity because of existing transportation problem. Daliuta ) coal washery mainly washes the raw coal of Daliuta and Huojitu ( . Its washing ability is 6.0 Mt/a. The products are the lump coal of 13-50 mm and slack of 0-13 mm. Shangwan ( _b'Mi ) coal washery has a washing ability 4.0 Mt/a with plans to wash the raw coal mainly of Shangwan (_b#) and Wujiata (SiiCip-) etc. (4) Coal quality and coal utility The feature of Shenhua (##) coal is low ash, low sulphur, low phosphor, high volatile, and high calorific capacity. But higher moisture content is higher because of big internal porosity. The lowest average Mt (total moisture) of each mine is 11.5%. and the highest reaches near 20%. Mad (moisture in the airdried sample) shares in about 6-12%. Average ash content change is 5-12% or so with the lowest less than 5%. Volatile (Vdaf) change is 33-39%. Sulphur content of the mines do not surpass 0.5% except in Wujiata UKSitF) where it is 0.58%. Calorific capacity (Qgr,ad) generally is 25-29 MJ/kg. The shortcoming is that the ash melting point is partially low, ST only 1200°C, and easy spontaneous combustion occurs easily. It belongs to the non-caking coal and long flame coal types of low ranking bituminous coal. The coal quality data for the main production mine is showm Table 4-2. -83 - Table 4-2 Coal Quality Data of Main Production Mine in the Shenhua Mining Area Mine Mt% Mad% Ad% VdaP/o CRC St,ad% Qgr,ad MJ/kg Majiata () 14.0 6.4 7.4 35.0 2-3 0.39 27.20 Wujiata (iKzKi# ) 11.5 6.8 10.5 36.4 2-3 0.58 26.00 Shangwan (hy%) 14.5 8.3 6.0 37.2 2 0.30 26.25 Bulianta ) 13.5 9.1 6.8 36.8 2 0.26 25.40 Wulanmulun -6, jrLTk'Ki 14.6 10.9 5.6 29.8 2 <0.50 25.33 Daliuta ) 13.8 9.3 8.0 36.0 2 0.38 28.13 Shigetai ) 18.8 12.0 12.3 36.7 2 0.40 22.89 Huojitu () 14.9 8.5 8.5 35.8 2 0.38 29.21 Guojiawan (SlWMl) . 13.5 8.4 3.7 28.1 2 0.20 27.68 Halagou 19.9 10.6 4.4 39.0 3 0.18 27.17 Yujialiang (##(#) 14.1 6.0 4.9 33.4 3 0.23 28.15 Source: Shenhua Group The greater part of the coal from Shenhua mining area is used as power plant coal being short of the coal district such as East China and the Central-South and industry boiler and cave furnace coal, and also as cement rotary kiln and residential coal. Part is set aside to export to South Korea and Japan, etc. Because of high shatter strength of the lump coal as well as good chemical reactivity and good thermal stability, Shenhua coal is fine gasification coal. Because of the low ash melting point of Shenhua coal, the scope of application is confined. - 84 - #B r Ei4# --A— -H-----H- *%£% #e, #mg, #e ------MM* *#E#R m #*(#&* ##)E #«f * '(.-<-- «■ @ & *, $, ME AM/ftM a» tlS&WB .v*'y ©Aft # $ -H—1*- %A%* z * # -41—_ 8*6$6A1U*& *r ©a £ *B □ •;■ fr#, Am# o /:. •■ # % ------A % = *&&E> $ # 2 R If'."?""' 8- 455 ! 513.5 87%$%A%* wit?nr .-1,;.:120 1 . 10.31 87fWWSTFI -4t%%W, rE 175 T 500 rffffi «titt« (etsjt^j c+p) ^Tai ^0 ' 1£ ft Ml/*, £j1 KMtte, rK X i & * tr, j" 87%$###jk I 5 S 284 ~su:r | i ^ aaai4x i 1 r* *$# ±/*> ®1 sr ^ , 300 «*;sss ”»* Af, X' 1000 it: i.66*£*2-i50#, * 2 %##%#&*. ..- -■».■* . #/*> i-M 8 •V »■• ’*■ o .... - , tf-tHSft: KW i £ >* «• • •il-'i.' '& r '6 @ ^ ft '4 1 \.hW!ir ufKiii 3067 26444 130293 89241 109386 55907 26547 106811 1 5093 9375 Id P 59823 3o 300 150 -300 180 -.300 30 0 6 00 ISO 300 500 ■ 300 | 60 60 i21 j [b'i 150 -300 Jfo J!j_f jU 24.4 120.5 79:6 64.4 59.2 20 i 85.5 : 14.0 12.0 1 55.4 A. *•. > • ■f M !*. jL.nii^i.1 ...... j-jf; iv;:; •r k r f •i *!: - t- 7|-J i f 4.2.2 Yaojie (SW) Mining Area (1) Location and transportation It is located 108.5 km to the west of Lanzhou ) city, Gansu (## ) Province. The railroad accessing the mining area meets the Lanqing (AUt|—##) railway at Haishiwan () station. The highway inside the area crosses the Ganqing (tt S —W'/jg) and Lanxin (T=. ji'l — Sril) highways. The tranaportation situation is convenient. The east side of the mining area is the F19 fault, and its west side is the coal outcrop line. Coal strata thins out on the north side, its south side is the bordered by a coal seam with a 1100m floor contour line. The area is 36.21 km2 with width 1.5-4.5 km from west to east, and length 13 km from north to south. Datong river is the main water supply source for the mining area, and water supply quantity can reach 4400t/d. The power supply comes from Lanzhou (Tz j'N ) electrical network. (2) Coal measures and coal seam The coal stratum belongs to Yaojie group of middle Jurassic System. It has 5 layers and 3 of them are workable layers. The average of thickness of the 2# layer, the main workable seam, is 24.0 m. The average thickness of the 1# layer is 2.0 m and average thickness of the 3# layer is 1.0 m. The geological structure in the mining area is an anticlinorium with axial northeast, and inclination northeastward. Its east is cut by the F19 fault from the northwestern direction. The geological occurrence varies great with a dip angle range of 10°-80°. Part becomes straight and reversed. (3) Production and construction of the mining area The mining area possesses reserves that reach 500 million tons. Aamong these, there are roducing mine reserves about 1/3. There are 3 production mine set up under the mining area. The designed capacity in each mine is as follows: 1# mine 0.9 Mt/a, 2# mine 0.45 Mt/a, and 4# mine 0.9 Mt/a. The whole mining area produced 2.879 Mt coal in 1997. A coal washery has not been built because the coal of this mining area is low ash and low sulphur. However, a coal washery can also be set up if needed. (4) Coal quality and coal utility The moisture of coal in each mine is little higher with Mt of 10-11% and Mad of 5-6%. The ash (Ad) is between 11-15%. Volatile (Vdaf) is generally about 35-37% or so, sulphur (St,d) is 0.40-0.50%, and calorific value is high and Qnet,ar of 22.87-24.04 MJ/kg. The coal is low ash, low sulphur and middle to high calorific value non-caking - 88 - coal. Tab e 4-3 Coal Quality Data in the Yaojie Mining Area mine Mt% Mad% Ad% Vdaf% CRC St, d% Qgr,ad Qnet,ar MJ/kg MJ/kg 1# mine 10.1 6.00 12.11 36.47 3 0.46 26.26 24.04 2# mine 11.1 4.99 14.58 36.56 3 0.52 25.59 22.87 4# mine 11.1 5.13 10.96 35.92 3 0.40 26.67 24.00 Source: Ministry of Coal Ministry Yaojie ( #§#) coal is good steam coal with low ash and low sulphur usedmainly as powder boiler coal for power plants, other industry boilers and cave furnaces at present. It is also good for pyrolysis, gasification and cement rotary kiln and civil fuel. - 89 - 4.2.3 Dayan Mining Area (1) Location and transportation The Dayan mining area is located in the west of Daxinganling () mountain of Hulunbeier league, the middle section of Hailaer (#% zj\ ) river,, Inner Mongolia ( 1*1 IS "if ) Autonomous Region. The Bingzhou ( Pq/F# — railway passes through the mining area from east to west. It is 443 km east to Qiqihar (^r^rPo/F ) city from Dayan () station, and 250 km west to Manzhouli (###) city. 1# - 3# mines are all in places nearby Dayan ( #) station. The major highway for the mining area is Tonghai national highway. The eastern part of the mining area has the coal outcrops, west is Zhanitun station, south is coal outcrop 34# and north to FI7 fault. The mining area is 320 km2 with length 40 km and width 8 km. The topography is mostly the low hills. These in the south, north and west are higher, but the middle is milder. (2) Coal measures and coal seam The coal stratum belongs to Damoguaihe formation and Yiminhe formation, Zhalannuoer group, late Jurassic. The former has 22 coal layers about 44m of average total thickness of which 27, 28 and 30 layers are the best among them. The thickness of each layer is 5-8m or so. Only coal layer 16 in the Yiminhe formation is workable. Its thickness is 2 .8-12 .2 m, and the coal seam becomes thin from east to west and from deep to shallow. It divides the fork, and its layer interval is enlarged also at the same time. (3) Production and construction of the mining area Dayan mining area has total reserves of about 3.6 billion tons. Among these about 0.5 billion tons is production mine reserves. The total production capacity is total 2.94 Mt/a, and there are 4 pairs of mines altogether. It produced 3.726 Mt of raw material in 1997 and its products are sold by screen. A coal washery has not been built. (4) Coal quality and coal utility All the coal in each mine of Dayan mining area is brown coal of the late Jurassic Period and the coal quality is very similar. The moisture of Dayan coal is high, Mt is near 35%, Volatile (Vdaf) is in 44% or so, ash is lower than 20%, the sulphur is lower than 0.50%, calorific value is low and Qnet,ar is 13.8 MJ/kg(3300 Kcal/kg) or so. The coal quality is shown in Table 4-4. -91 - Table 4-4 Coal Quality Data in the Dayan Mining Area Mt% Mad% Ad% Vdaf% St,d% CRC Qgr.ad Qnet,ar MJ/kg MJ/kg 34.65 26.15 17.72 44.39 0.45 1 17.09 13.79 Source: Ministry of Coal Ministry The brown coal from Dayan mining area is used mainly as generating fuel, but it can also be used as industry boilers and cave furnace fuel. However, combustion efficiency is better after blending with other high caloric value coals. The lump coal can be used as Lurgi gasifier. - 92 - T! I '•Of t -i ' z 4.2.4 Zhalainuoer Mining Area (1) Location and transportation The mining area is located in the west of Hulunbeier (Bfffc JJ1/TO league and belongs to Manzhouli (#M) city of Inner Mongolia ( A) Autonomous Region. Binzhou (Pp/K'd?- railway passes through the central section of the mining area and connects with the special line in mining area at Zhalainuoer (^LSri^/R) station. West to Manzhouli city from Zhalannuoer (^LSciS/T) station is 29 km, and the east to Hailaer (%^/T ) city is 160 km and to Harbin 906 km. There is only a road to Manzhouli (###) city. The west of the mining area is Zhalainuoer ) fault, and its east of mining area is Aergong (N" /T ^) fault. The northern border of the mining area is Tiebei (gUh) mining area, and the south is Hulun (lake. The mining area is 1035 km2 with its width being 23 km from east to west and length being 45 km of from north to south. (2) Coal measures and coal seam The coal stratum belongs to Zhalainuoer (^LSri^f/T ) group, later Jurassic Period of Mesozoic, with 14 workable coal seams. The average thickness of the 112 layer, which has the biggest thickness, is 8.71m. The average thickness of the II3 layer is 6.1m, the VII layer is 6 m or so, and others are all between 3-4 m. The total thickness of the whole area is be workable far more than 45m. (3) Production and construction of the mining area Total reserves of Zhalainuoer ) mining area reach above 8.0 billion tons. Among them, nearly 1.0 billion tons is in the production area. There are 5 pairs of mines altogether. Total production capacity is 6.07 Mt/a, and total output was 4.206 Mt in 1997. (4) Coal quality and coal utility Coal from each mine of Zhalainuoer () area is old brown coal, and the coal quality is very similar. The coal quality of the entire mining area is shown in Table 4-5. Tabl e 4-5 Coa Quality Data in the Zhalainuoer ) Mining Area Mt% Mad% Ad% VdaP/o CRC St,d% Qgr,ad Qnet,ar MJ/kg MJ/kg 33.5 13.25 14.5 44.2 1 0.30 21.34 15.03 Source: Ministry of Coal Ministry It can be seen that the brown coal of Zhalainuoer (fLffili/F) mining area is low sulphur, low ash, high volatile, high moisture, non caking ability, good chemical - 94 - reactivity, and high shatter strength. It is good for gasification. The fine coal is mainly used as generating fuel by the Manzhouli (###) power plant, but it can also be used as industry boilers and cave furnace fuel. The coal is also can be as an active carbon raw material. - 95 - 4.2.5 Pingzhuang (f &) Mining Area (1) Location and transportation The mining area is located in the southeast of Chifeng (##) city, Inner Mongolia (1*1 8 S) Autonomous Region. It includes Pingzhuang (^FjEfe) and Yuanbaoshan (tlS ill ) coal fields. The area is 174 km2, and it shows a banding distribution of NE- S W. The south of Pingzhuang ( ) coal field is the Wujia (hM-) mine and the north is the Gushan (S lU ) mine. The shallow part is from the coal outcrops, and the deep part is to the workable boundary. Length is 27 km and width is 2 km. It covers about 54 km2 of area. The Yuanbaoshan (tg SlLi ) coal field is to the south of Hongmiao (lT/5 ) mine, and north is the Fengshuigou (JRlzK#) ) mine. The shallow part is to the coal outcrops, and the deep part is to the workable boundary. The length is 30 km and width is 4 km. Areas is about 120 km2. Yebaishou-Chifeng (OfK# —##) and Beijing-Tongliao (SjR—#1[) railways pass the mining area and connects with the special railroad inside the mining area at Pingnan ( ) station, Yuanbaoshan ( 7U 5 ill ) station, Malin station and Fengshuigou station. It is 55 km from Pingzhuang (^FjElE) to Chifeng () , 92 km to Yebaisho , and 314 km to Jinzhou (IS1H) . The mines are interconnected by highway. (2) Coal measures and coal seams The coal stratum belongs to Fuxin formation and Jiufutang formation of later Jurassic system. Yuanbaoshan (tu SlU) coal bed of Fuxin formation is the main workable seam in this area. Among them, Pingzhuang () coal field which has 3 layers workable seam, with thickness of 20 - 47m, and among them the 6-2 layers with thickness reaching 4.33-31.40 m is the main workable seam. Yuanbaoshan ( jnS ill) coal field has 9 layers of workable seam. Among them, the coal layer with the greatest thickness of 0.8-1 1.1m is 9# layer. (3) Production and construction of the mining area The coal reserves of Pingzhuang mining area more than 1.7 billion tons. The producing mine occupies about 1/3. The 6 producing mines are Yuanbaoshan (tg SlU) , Wujia (5lS) , Gushan (S ill ) , Hongmiao ( /$ ) , Fengshuigou ( M 7jC % ) and West open-cut in the Pingzhuang (^FflE) Mining Administration. The coal produced by each mine is brown coal except the 1# and 2# of the Gushan ("Sill) mine which produces non caking and long flame coal. The brown coal accounts for more than 85% of total coal of Pingzhuang mining area. The production capacity of each mine is as follows: Yuanbaoshan, 0.85 Mt, Wujia, 0.85 Mt; Gushan, 1.0 Mt; Hongmiao, 1.2 Mt; Fengshuigou, 0.9 Mt and West open-cut, 1.5 Mt. The mining area produced 6.631 Mt -97- of raw coal in 1997. There are 4 steam coal washerys in the mining area such as Gushan mine, Fengshuigou, West open-cut and Hongmiao etc. The basic capacity of each factory is as follows: the washing ability of the coal washery in Gushan is 1.2 Mt/a, West open-cut, 1.5 Mt/a; Hongmiao, 1.2 Mt/a and Fengshuigou, 0.6 Mt/a. (4) Coal quality and coal utility The coal of Pingzhuang mining area is mainly brown coal. Total moisture is high, Mt average IS 23-30%, volatile (Vdaf) is 40-45% or so and the coal is non-caking ability. The ash content in coal seam generally is 15-20%. Ash in the commercial coal of each mine is above 20 - 35%, because the dirt band in coal is high. Sulphur content is medium and St,d is between 0.8-2.0%. Calorific value is low and Qnet,ar generally is 12.5-15.5 MJ/kg. The major coal quality features are shown is listed in Table 4-6. Table 4-6 Coal Quality Data in the Pingzhuang (-^PJES) Mining Area mine Mt% Mad% Ad% Vdaf% St,d% Qgr,ad Qnet,ar MJ/kg MJ/kg Yuanbaoshan 7Cill 25.8 12.81 28.8 43.6 1.84 18.14 14.01 Wujia (SiSO 26.3 9.34 21.9 45.1 0.83 17.39 12.92 Gushan (ik lij ) 22.9 7.33 26.2 43.0 1.40 20.04 15.66 West open-cut 29.4 9.95 23.7 42.9 1.32 19.53 13.99 Source: Ministry of Coal Ministry The coal of Pingzhuang (fmining area is mainly used as power coal to supply some power plants nearby and Liaoning (3Z t2 ) . The major users are Chifeng (jfr #) , Shenyang (£fcP0) , Chaoyang ) and Yuanbaoshan (tu SlLi ) power plants. It also supplies the industry boiler. The lump coal for which ash is low can be used to Lurgi pressured gasifier to make city gas or synthetic gas. -98- 4.2.6 Yanzhou (%jW) Mining Area (1) Location and transportation The Yanzhou () coal field is located on the boundary of Yanzhou () , Zou (##) county, Qufu ( 6-$-) and lining (§f'r ) four cities(county) at the southwest of Shandong ( ill $) . Total area is 500 km2. The transportation of the Yanzhou (%#l) mining area is very convenient. The Beijing-Shanghai (4b^ —_h 'M ) railway passes through the northeast of the mining area and is the main north- south transportation of the mining area. The Yanshi (jfcji'l — railway is straight and leads to Shijiusuo (T?E3@t) (Rizhao 0 M) port allowing for easy export of shipments to the south. The mining area has formed the railroad network. It meets the Beijing-Shanghai (dkS-JhS) railway standing in Zou county and connects with the Dawu (^vSlD railway and Yanshi (^Ellj — B0T) railway. Coal can be carried to the West by the Yanhe (##) railway. Moreover, there is a canal and highway extends in all directions. (2) Coal measures and coal seam The geological structure of the Yanzhou coal field is fairly simple, and the coal stratum belongs to the Carboniferous and Permian. The Shanxi formation and Taiyuan group have a total of 24-30 layers. Among these the 3rd layer of the Shanxi formation is the steady workable coal seam with average thickness of 9m. It is suitable for large-scale mechanization to mine, and the 2nd layer is partly workable. In the Taiyuan group, the 16# upper and the 17th layer with coal thickness of about 1m can be worked steadly. In the 6, 10, 15# upper and 18# upper with coal thickness of about only 0.6m can only be partly workable. The other layers are not workable. The proven coal reserves of the whole coal filed are above 4.0 billion. It is listed as a coal production base by the nation because of its reserves, coal quality, good exploitation conditions and superior geographical position. (3) Production and construction of the mining area The mining area is completely underground mining. The 6 mines into operation are Dongtan ($$6) , Nantun (#%) , Xinglongzhuang (t^PEJE!:) , Baodian ) , Yangcun (## ) , and Beisu ( ) . Total designed capacity is 12.85 Mt. It produced 19.239 Mt raw material in 1997. The coal produced by the Yanzhou mining group limited company completely passes screening at present. There are 4 large-scale coal washerys such as Nantun (]#%) , Xinglongzhuang , Baodian (Ifi ) and Dongtan ($$$) . The washing ability is 11.8 Mt. (4) Coal quality and coal utility The difference of deposit environment has decided that each coal seam in Shanxi formation is low sulphur coal and each coal seam in Taiyuan group is middle and high sulphur coal. Most of coal seams are low ash coal. The coal of the entire area is all of or - 100- roughly identical metamorphism and thus are gas coal except the coal in the Yangcun (##) mine. The volatile of each seam in Taiyuan group is higher than that of Shanxi formation. The main workable seams of Dongtan () , Nantun (S4l) , Xinglongzhuang ( tn PEJE ) and Baodian () are the third layer in Shanxi formation. The natural ash content is 13%, total sulphur is 0.4 - 0.7% , Vdaf is 37 - 38%, Vitrinite content is 60 - 70%, calorific value (Qgr,d) is 25 - 30 MJ/kg, and the ST>1450°C. It is not easy to clinker. Phosphor is 0.002-0.016% and the grinding index is 60 or so. The coal has medium washability, and refined coal of low ash (Ad < 7%), low sulphur, with a recovery ratio above 40% can be obtained. So this coal is good for coking blend, chemical raw materials and steam coal. Because of its high activity, it is suitable for hydrogasification. The main workable coal of Beisu, Yangcun and Tangcun is the 16# upper and 17# layers of Taiyuan group. The natural ash content is 11-13%, total sulphur is 3-5%, and Vdaf is 42 - 45%, Vitrinite content is 70-88%, calorific value (Qgr,d) is 30-33 MJ/kg, ST is 1200°C, phosphor is 0.002-0.004% and the grinding index is 60 or so. This coal has high caking ability, but owing to high sulphur content the scope of application is limited. Table 4-7 Coal Quality Data in the Yanzhou Mining Area mine Mad% Ad% VdaP/o CRC St, d% Qgr,ad MJ/kg Dongtan (SiS) 2.85 16.82 39.22 3 — 6 0.74 26.66 Nantun (W4l) 3.45 12.43 38.03 4 — 6 0.56 28.00 Xinglongzhuang 3.28 12.32 37.16 4 - 5 0.43 28.28 Baodian ) 3.17 9.84 37.80 4-6 0.57 29.11 Yangcun (##) 2.26 11.78 44.47 7 3.90 29.18 Beisu Ufctff!) 3.28 6.22 44.54 7 3.25 30.96 Source: Ministry of Coal Ministry — 101 — il ••»©'# | -n-2»lsa »irE»i£ -3 OX — 8S*£Mp 2" l_ 19 5282 27723 150 ! - 9"""' A 102 63.03 -S “ - ; , : ~r& ~ — i 4.2.7 Datong (^C|5j) Mining Area (1) Location and transportation The Datong ) coal field is located in the southwest of Datong (^v[s]) city and spans Datong ) , Zuoyun (£5) , Youyu (^B3E) , Huairen () , and Shanyin (ill ) . The geographical position is East longitude 112°30’-113°1 1’, North Latitude 39°37 ’—40°12’. The Jingbao lil4) railway and Beitongpu (1^]— ) railway converge at Datong (|s]) , and the Daqin Sj) electric railway arrives at the Qinhuangdao ) port from Kouquan ( □ S.) station. Datong (^[5]) city is 380 km from Beijing (dbS) , 433 km from Baotou , and 370 km from Taiyuan . The Datong (Al^l) coal field is roughly a rectangle basin with area of 2550 km2. From northeast-southwest, it is about 85 km long; and from northwest-southeast, it is about 30 km wide. The northern part of the coal field has deposits from the Jurassic Period coal series, the southern has deposits from the Carboniferous and Permian coal series, and the middle part is composed of Jurassic and Carboniferous and Permian coal series. The topography is mild loess hills and basin inside the coal field. The stormed crack cuts heavy, and there is a network of rivers running through the coal field. The Shili (+J1.) river in the north of the coal field converges into the Sanggan ( River. (2) Coal measures and coal seam There are 4.0 billion tons of reserves in the Datong mining area. The north of the coal field is the Jurassic system, which is generally divided into 3 coal seams. The south is generally divided into 10 layers. The inclination of the southeastern edge of coal field is big, and other areas aremostly horizontal coal seams. The geological structure is simple. (3) Production and construction of the mining area There are 15 production mines in Datong mining Administration bureau with primary designed capacity of 29.6 Mt. After the technical transformation and introduction of mechanization mining, production capacity is 37.0 Mt, and the mechanization level is up to 97.05%. The designed capacity of each production mine is as follows: Meiyukou (jPSP ) , 1.7 Mt; Yongdingzhuang (tKa E-J£) , 2.3 Mt; Tongjialiang (, 2.2 Mt; Silaogou , 1.5 Mt; Xinzhouyao (t/fj'MS) , 1.6Mt; Baidong ( ypD , 1.6 Mt; Yanya (JjfjS) , 1.6 Mt; Wajinwan ) , 1.7 Mt; Jinhuagong (-b^peO , 1.2 Mt; Majiliang (4##) , 0.5 Mt; Dadougou (^-4^) , 1.4 Mt; Wangcun (zE#) , 0.6 Mt; Yungang (5^) ,2.7 Mt; Yanzishan (#4lll) , 4.0 Mt; and Sitai (E9 o' ) ,5 Mt. For the total Mining bureau, this is 29.6 Mt. It produced 34.072 Mt raw coal in 1997. - 103 - (4) Coal quality and coal utility It is mainly weakly caking coal in the Datong mining area. The coal quality is stable, and the merit is low ash, low sulphur, high caloric value, moderate volatile, low potassium sodium content, and low ash melting point. The ash content is generally 6- 16%, the volatile matter is generally 27-31%, and it is higher of the edge than that of the center. Total sulphur is generally between 0.2-2.0%, but sulphur content of 12# and 14# layers is higher. The caloric value of the northwest section of the mining area is partially low because full moisture content in the coal is higher. Qnet,ar is 26-29 MJ/kg. The preparation property of Datong coal is better. Datong coal is qualified steam coal. But one should be aware of the superiority of Datong coal with low ash, low sulphur, high calorific value, and moderate volatile matter. Some coking plants use Datong refined coal as blend coal at present. Datong coal can also be made to char as a ferroalloy reducing material. In addition, the coal is used as fine coal-water-slurry. Synthetic analysis indicates that Datong coal can be considered as prior hydrogasification coal. The synthetic coal quality data for the of main production mines in the Datong mining area is shown in Table 4-8. Table 4-8 Coal Quality Data of Main Production Mines in the Datong Mining Area mine Mad% Ad% V daf% CRC St,ad% Qgr,ad MJ/kg Majiliang 7.17 14.02 32.53 1-2 0.33 25.99 Wangcun (EEfct) 5.56 10.27 33.09 2 0.25 27.27 Yanzishan (ill ) 4.16 7.90 32.25 1-2 1.21 28.92 Sitai ( E9 □ ) 4.77 13.02 32.43 1-3 0.70 27.31 Meiyukou ) 4.51 7.19 28.37 2-3 0.30 29.97 Yongdingzhuang ( 3.11 6.78 27.88 2- 3 0.36 31.06 Tongjialiang 2.07 10.74 28.68 3 0.99 29.73 siiaogou 5.57 10.01 28.82 2-3 0.82 27.83 Xinzhouyao (t/fS ) 2.71 10.80 25.14 2-3 0.80 29.60 Baidong ( 6$!) 3.27 8.03 29.18 2-3 0.86 30.28 Yanya (##) 2.54 7.12 26.12 3 0.26 30.05 Waquanwan ) 6.11 12.98 30.78 2-3 0.90 26.64 Jinhuagong ) 3.36 11.86 30.44 1-3 0.62 28.72 Dadougou () 3.62 6.57 31.53 2-3 0.56 30.24 Yungang (zr^j) . 4.47 8.37 30.57 2-4 0.68 29.64 Source: Ministry of Coal Ministry - 104 - 4.2.8 Hami (PpHS) Mmining Area (1) Location and transportation Hami mining (Pft#) area (another name of Sandaolingmining area in the locality) is located in the northwest of Hami (PnW ) , eastern of Xinjiang (Sril) Autonomous Region, and it is 74 km east to Hami (Dft#r) city, and 515 km west to Ulumuqi city. The transportation of the mining area is convenient, and the Lanxin — Sril) Railway closely passes through along the southern side of the mining area. The country road of 912# closely passes through along the northern side of mining area. A special railroad which is 13.1 km long in mining area meets Lanxin (^i'l'l — Sill) Railway at Shuquan (WA) station. The mining area is distributed in the Gobi Desert of the south foothills of Baerku mountain. The topography is such that the south is high and north is low with a natural slope of 1.2%-2.5% or so. Elevation is 980-1 500m. The climate of thermining area is continental dry type with little rain or snow all the year. Average rainfall is 46 mm of the year and evaporation capacity is 3680mm. The lowest temperature of the year is - 30°C and the highest temperature of the year is 38°C. (2) Coal measures and coal seam Hami coal field is formed in the middle-old Jurassic system in Mesozoic Era. The coal field has 6 coal layers, namely 1# - 6# from top to bottom. Among these, 4#-6# coal layers are workable. The 2# is partly workable. Total thickness of the coal seam is 17.65 m with an average workable thickness of 14.92 m. The 4# coal layer thickness varies from 3.5-14.7 m with an average thickness of 8.72 m. The 0-3 layers are a dirt band. The coal seam is stable. The total recoverable reserves of Hami are about 1.5 billion tons. (3) Production and construction of the mining area Hami mining area was built in August, 1958. At present its scale is constructed for 2.7 Mt. The 3 existing production mines are the surface mine, 1# mine and Beiquan (4k tS.) inclined mine. The primary designed capacity of the open-cut is 1.5 Mt but it has expanded to 1.8 Mt. The designed capacity of 1# mine is 0.3 Mt, but presently has a 0.4 Mt production capacity. Beiquan inclined mine has 0.3 Mt designed capacity. The whole area produced 2.43 Mt raw coal in 1997. There is a self-use power plant with 21 thousand KW of installed capacity. The annual generated energy is 50 millon KWh. Hami mining administration bureau can not produce non-stop time due to the restriction of railway transportation. Though a coal washery was built, water supply is inadequate. It is easy to smash after washing and drying by sun, so the raw coal only sieves and grades. - 106 - (4) Coal quality and coal utility The 4# coal layer is mined by 3 production mines in the mining area. This coal layer has the features of big thickness, small dip, good condition, stable quality, and IS workable throughout the entire mining area. The coal is non-caking coal. The ash content (Ad) is 5.0-10.0 % , moisture content (Mt) is 13.0-16.0% , the volatile matter (Vdaf) is among 27.0- 32.0% and sulphur content is very low generally among 0.2- 0.5%. It kis important to be aware that that the ash melting point of Hami coal is clearly low, and ST is between 1100°C-1200°C and not surpassing 1250°C because of the high basic oxygen materials of CaO and Fe203. The average content of CaO is 25% or so, and average content of Fe203 is 25% or so. However, the average A1203 is only 15% or so. The acidity oxides cause the melting point to rise up. The analysis of coal petrography indicates that the content of vitrinite is 33.9 - 43.0%, the content of extinite is 1.1-7.0%, and inertinite is 30.5-64.2%. In general, the coal quality in Hami mining area is basically the low ash, low sulphur, low phosphor, high volatile matter, high calorific value and qualified steam coal. There are 3 types of products at present, namely large sized coal, middle sized coal and mixed coal. The major user is the power plant of Gansu Province and civil. The middle size coal is mainly used for making gas in the glassworks. The reactivity of Hami coal is high, and it is a good raw material for gasification due to its good thermal stability.The synthetic coal quality data for the main production mines in the Hami mining area are shown in Table 4-9. Table 4-9 Coa Quality Data of Main Production Mines in the Hami (Pq ) Mining Area mine Mad% Ad% Vdaf% CRC St, ad % Qgr,ad MJ/kg Surface mine 5.08 5.49 30.87 2 0.41 28.98 1# mine 6.29 5.51 29.74 2 0.32 28.41 Beiquan jkA. 5.48 4.93 27.17 2 0.51 28.86 Source: Ministry of Coal Ministry - 107 - s- V V ft 5 i2l / E * / .• CCS - 108- 4.2.9 Ulumuqi Mining Area (1) Location and transportation The Ulumuqi ( A# A^r) mining area is located in the northeastern 30 km of Ulumuqi () city. From west to east is 27 km and from north to south is 6-8 km wide. Elevation level is 672 - 1040 m and transportation is convenient. There are 5 coal mines, 2 steam-coal washeries and 3 sieving preparation systems in the Ulumuqi ) mining administration bureau. The five mines from the west to east are Liudaowan ( A ill fW ) , Weihuliang ( ) , Jiangou , Xiaohonggou C'hiL'/i}) and Dahonggou ( • The total designed capacity is 2.45 Mt/a. In addition, there is one waste cement plant with 50 thousand tons producing capacity per year. There is also a pottery and porcelain factory. The steam-coal washerys are built respectively at the Liudaowan (AiH'VW) coal mine and Jiangou (WcM ) coal mine, simple coal washeries are built respectively at the other 3 mines. (2) Coal measures and coal seam The coal stratum belongs to Jurassic and Quaternary and is divided into 3 groups of upper, middle and lower. The lower group of coal strata has a thickness of 750-900m with 4 layers of workable or partly workable. The total workable coal thickness is 14.14 m. The middle group strata has a thickness 737 - 903 m with 27-34 layers of workable coal. (3) Production and construction of the mining area The coal reserves of Ulumuqi mining area is 0.688 billion tons. The coal types are long flame coal and non-caking coal. The designed capacities of the 5 production mines are respectively: Liudaowan ( A iSMi) , 0.9 Mt; Weihuliang ( ) , 0.75 Mt; Jiangou ) 0.4 Mt; Xiaohonggou () 0.3 Mt and Dahonggou (A# y£j) 0.1 Mt. The total capacity of Ulumuqi ( A#A^r) mining area amounts to 2.45 Mt. It produced 2.615 Mt coal in 1997. (4) Coal quality and coal utility The physical characteristics of each coal layer of Ulumuqi mining area are similar. The coal petrographic composition is mainly bright coal with pitch colour. The metamorphism of coal varies with the lower part being weakly caking coal and middle- upper part being long flame coal. The carbon content of the lower part is 1-2% higher than that of the upper part while the oxygen content of the lower part coal is 1-2% lower than that of the upper part. The Qgr,daf of the lower part coal is 1-3 MJ/kg higher than that of the upper part. The average results for the major coal quality of each mine commercial coals is shown in Table 4-10. - 109 - Table 4-10 Coal Qualily Data of Main Proc uction Mines in the Ulumuqi Mining Area Mine Mad% Ad% VdaP/o St,d% CRC Qgr,ad MJ/kg Weiluliang ( 3.45 15.73 39.41 1.08 1-3 27.07 Jiangou ) 4.44 16.68 41.45 1.05 1 26.08 Xiaohonggou () 3.33 19.43 44.69 1.60 1-3 24.34 Dahonggou ) 3.98 24.27 41.64 1.33 1 22.86 Liudaowan 2.45 14.87 37.91 1.03 1-3 27.11 Source: Ministry of Coal Ministry The long flame coal and weakly caking coal produced from the Ulumuqi mining area have the features of high volatile matter, high calorific value, and good reactivity. At present the major user is the electric power plant which accounts for 40% of annual consumption. The other users are locomotive at 10-15%, and chemical fertilizer and civil at 20-30%. The coal of this mining area is good for hydrogasification. - 110- ill 4.2.10 Wuda (J%X&) Mining Area (1) Location and transportation Wuda (Si£) mining area is located in Wuhai (-%#) city of the Inner Mongolia ( A KS) Autonomous Region. Its geographical coordinates are E 106°34’, and N 39°27\ It is 11 km from the Yellow River and is adjacent to the Wulanbuhe ( # ) desert in the north and northwest. It is 45 km to the south of Shizuishan (S# lli ) city of Ningxia ( t3 X ) Autonomous Region. The Baolan (Sk ~ 1=1 ji'l) railway passes through Wuhai city that is 405 km east to Baotou (^^k) city and 146 km to Yinchuan (# jl| ) city. The mines are connected by special railways. (2) Coal measures and coal seam The coal stratum of Wuda (coal field belongs to Taiyuan formation of later Carboniferous and Shanxi formation of the lower Permian. The total thickness of coal strata is 294 m. The 23 layers of coal seam have a total thickness 32.74 m. The recoverable coal reserves of Wuda (-%#;) coal field are 0.51 billion tons at present. In the northeast of the mining area is the Jiaozigou (#9%) field with 0.11 billion ton reserves. The workable coal seams are 9#, 10#, 12#, 13#, 15#, 16# and 17# layers. In the northwest of the mining area is the Suhetu ) field with 0.12 billion tons reserves. The workable coal seams are 9#, 10#, 13#, 15#, 16# and 17# layers. In the south of mining area is the Wuhushan (TlJ^lIi ) field with 0.27 billion tons reserves. The workable coal seams are 12#, 13#, 15#, 16# and 17# layers. (3) Production and construction of the mining area There are 3 production mines in the Wuda ( A&) mining area, namely Huangbaici (M 6 ^) mine, Suhetu ( SSIEI ) mine and Wuhushan (TlI^lLi) mine. The designed capacity of Wuda ( A ) mining administration bureau is 4.50 Mt. Checked and ratified capacity was 4.60 Mt in 1990. It produced 3.65 Mt in 1997, which was 1.152 Mt of fat coal and 1.611 M of 1/3 coking coal, and also 0.89 Mt of unknown type. The designed capacity of Huangbaici mine is 1.20 Mt and it went into operation in 1990. The designed capacity of Suhetu ( $$SH3) mine is 1.80 Mt, and there are two coal washeries with 0.45 Mt and 0.90 Mt washing ability respectively. The products of two coal washeries are all the refined coal for metallurgy. The major users are Baotou iron and steel company and Tangshan (Sill) iron and steel company. The designed capacity of Wuhushan (jEzRll) mine is 1.50 Mt, and there is one coal washery that is heavy media cyclone with 0.45 Mt washing ability. The production and management of Wuda (-5?i£) mining area is very difficult. There are 3 reasons for this. The first is that coal output is restricted by the limited - 112 - transportation ability because the Baolan irJ'I'l) Railway which is the main way of carrying coal outside is a single line. Secondly, local energy resources are excessive because there is no big coal consumer and the third is that the coal quality is high sulphur and also high in ash content. (4) Coal quality and coal utility Wuda coal field has 16 workable and partly workable coal seam, and all of them are coking blend coal. The coal type and quality of each coal seam are different due to differing coal forming times, deposit environment and metamorphism of coal field. From 1# layer to 17# layer, the metamorphism is from small to big and the volatile matter is from high to low, namely 31.9% to 26.05%. 1#, 3#, 4#, 6# and 7# layers are 1/3 coking coal, 8# layer is fat coal, 15# layer is coking coal. But 9#, 10#, 12#, 13#, 16# and 17# layers are fairly complicated, fat coal, 1/3 coking coal and also coking coal once in a while in the same layer. The ash content of shallow and deep part is higher than 30%, while the ash content of middle part is lower than 10%. The change of sulphur content is just opposite to the change of ash content. The sulphur content of shallow and deep part is low, while the sulphur content of middle part is greater than 4%. The synthetical coal quality data for th emain production mines in the Wuda (A ii ) mining area is shown in Table 4-11. Table 4-11 Coal Qquality Data of Main Production Mines in the Wuda Mining Area mine Mt% Mad% Ad% V daf% CRC St,ad% Qgr.ad MJ/kg Huangbaici (If 1=1$:) 7.28 0.59 14.02 31.50 7 3.44 30.13 Suhetu ( S#E1) 8.33 0.56 20.91 29.12 5-7 1.06 27.03 Wuhushan (TlJ^iJLi ) 4.09 0.86 29.09 32.00 4-5 0.40 23.06 Source: Ministry of Coal Ministry Wuda coal is difficult to sell due to its high sulphur and high ash content, so new ways to it are being sought. Some possible methods are as follows: on the one hand, building a great electric power plant and making the coal for electricity export toward the coast; on the other hand, developing coal chemical industry and using the coal for hydro gasification. - 113 - II Investigation of Places Selected for Hydrogasification 1 Shanghai 1.1 Reasons for Selecting Shanghai Locating at the tip of the Yangtze River Delta, Shanghai occupies the center along China’s coastline and si an excellent sea port and river port, which also has an easy ccess to a vast hinterland. Shanghai covers an area of 6340.5 square kilometres, 0.06% of China’s total territory, extending about 120 kilometres from north to south and nearly 100 kilometres from east to west. Shanghai has an urban area of 2643 square kilometres, land area of 6,219 square kilometres and water area of 122 square kilometers. The Chongming Island is the third largest island in China, covering an area of 1,041 square metres. By the end of 1997, Shanghai had a population of 13.05 million (according to the residential registration), representing 1.1% of China’s total. The average population density in the city stands at 2059 people per square kilometre, but the figure reaches 3,845 in the urban area. As the center of Chinese industry, Shanghai is always ranking the leadership to economic development in China. Today, with the expanding and extending of reform and opening to the outside, it is becoming an international municipal. It is well known that the structure and consumption of energy is the symbol of a developed city with a high degree civilization. At present, the structure of energy consumption is still not reasonable. The utilization ratio of fuel gas and proportions of different kinds of gases are also not satisfactory, which is putting serious pressure on living environment. Therefore, the government of Shanghai will take measures such as gradually decreasing the consumption proportion of coal gradually, expanding the sources and ways of natural gas, increasing the supply of petroleum, converting coal to electricity step by step, spreading Clean Coal Technologies, developing and utilizing new and regenerated energy and strengthening optimizing measures for energy saving and proper utilization. All these measures aim at decreasing coal proportion from 70% to 50% or even lower and creating the supply system of energy resources mainly composed by electricity, petroleum gas and natural gas in the future. From the above standpoint, it is very helpful for improving the present structure of energy resources, especially the ratio of different kinds of fuel gases, to spread the hydrogasification technology which will reduce the local environmental pollution and -promote the development of the economy. Therefore, it is appropriateto select Shanghai as the standard location of coastal areas in China. - 115 - 1.2 Status and Future of Energy Demand and Supply in Shanghai 1.2.1 Status and Future of Industrial Structure in Shanghai Since the reform and opening to the outside, Shanghai has being kept sustained, rapid and sound economic development. In 1997, the total GDP reached 336.02 billion yuan, up 12.7% from the previous year according to the comparable prices. The Primary industry achieved added value of 7.58 billion yuan, up 4.2% over 1996 and accounting for 2.3% of the city ’s total GDP or 0.2 percentage point lower than that of the last s year. The figures with the secondary industry stood at 175.44 billion yuan, 10.6%, 52.2% and 2.3%, respectively. However, the tertiary industry achieved added value of 153.00 billion yuan, up 17.7% from 1996 and accounting for 45.5% of the city ’s total GDP or 2.5 percentage points higher than that of the previous year. # Urban Construction Investment in the capital construction is guaranteed at first. In 1997, Shanghai invested 41.29 billion yuan in the construction of infrastructure facilities, accounting for 20.9% of the city ’s total investment in fixed assets. During the year, a number of key projects including the Xupu Bridge, the east section of the Elevated Yan’an Road, Lingjiang Water Works were all completed. Shanghai has taken on a new look. The city continues to develop the public utilities. In 1997, 2.38 billion people (times) used the public transport services, representing a daily average of 6.52 million riders. In 1997, the city sold 1.98 billion cubic metres of tap water, up 0.1% from that of the last year. Of the total, 1.12 billion cubic metres were sold to households, up 4.4%. In 1997, 2.26 million households used pipegas, up 9.4% over the previous year, while another 1.99 million households used LPG, up 12.5% percentage points. The city supplied a total of 1.95 billion cubic metres of gas, basically maintaining the previous year ’s level. In 1997, the city made great achievements in improving environment. The green areas in the city continued to expand. In 1997, 323 hectares were added. The green areas then made up 17.8% of the city ’s total territory, 0.8% percentage point higher than that of the previous year. The average per capita green area for local residents reached 2.41 square meters, 0.49 square meter more than that in 1996. • Foreign Economic Relations, Trade Shanghai ’s port functions have been further improved. As a result, the city ’s foreign trade has kept its fast growing momentum. In 1997, the city reported new growth in imports and exports, with the total value of commodities passing through Shanghai Port reaching 58.68 billion US dollars, up 11% from that of the previous year. Of the total, the export was valued at 33.45 billion US dollars, up 22.9%, and the import was 25.23 billion US dollars, down 1.7%. In 1997, the city ’s total import and export of foreign trade amounted to 24.76 billion dollars, rising by 11.2% over 1996. Of the city ’s total, the export was valued at 14.72 billion US dollars, up 11.2%, and the - 116 - import was 10.04 billion US dollars, up 11.2%, too. Shanghai has made much headway in attracting overseas investment. With better quality, overseas-funded projects are spreading into more economic sectors. In 1997, the city approved a total of 1802 projects with direct foreign investment with contracted foreign investment totaling 5.32 billion US dollars. In 1997, the city actually absorbed 6.35 billion US dollars in foreign investment. Of the total projects with direct foreign investment, there were 188 projects with an investment exceeding 10 million US dollars each. • Industry The total industrial output value in 1997 was 564.99 billion yuan, up 14.5% from the previous year. Heavy industry grew slightly faster than light industry with the output of the former rising by 16.1% to 312.17 billion yuan, and the latter by 12.6% to 252.82 billion yuan. Industrial marketing was also integrated with industrial production to achieve better economic efficiency. In 1997, the production/sales ratio of industrial products was 98.05%. The ratio for the heavy industry was 98.45 and for the light industry was 97.52%. Also in the same year, the industrial sector accelerated its restructuring, aimed at strengthening the pillar industries, expanding new and high-tech industries and improving the traditional industries. A total of 22,000 kinds of new products were developed in 1997, accounting for 9.8% of the total industry output value. New products developed by Central government industrial enterprises and local major industrial groups and companies made up 18.9% of the total industrial output value. Efforts were also made to develop the high-tech industry featuring integrated circuits and computers, modem biological and new medicines, and new materials. The output value of new and high-tech industries accounted for 15.1% of the city ’s total industrial output value. The city ’s six pillar industries, namely auto industry, manufacture of electronic telecommunications equipment, manufacture of complete power equipment and heavy -duty machinery and electric equipment, petro-chemistry and precision chemistry, iron and steel industry, and household appliance manufacturing industry, maintained their dominant position, accounting for 52.3% of the total industrial output value and 49% of the total industrial added value. Production of cars, telephone switchboard, power station equipment, petrochemical and fine chemical products, air- conditioners and fax machines also increased by different margins over 1996. • Construction The output value of construction registered a steady growth while labor productivity continued to rise. In 1997, the city had a total of 1440 construction enterprises, employing 374,000 people. The construction output value realized in the year was 56.44 billion yuan, shooting up 25.3% over the previous year. Of the total, the state-owned enterprises realized an output value of 34.72 billion yuan, a 21.2% increase; the collective enterprises realized 12.79 billion yuan, a 15.4% rise; the overseas-funded - 117 - enterprises realized 1.83 billion yuan, a remarkable growth of 46.5%. Average labor productivity in the construction industry was 94,000 yuan per worker in 1997, up 17.3% from a year earlier. The labor productivity was 103,900 for the state-owned enterprises, 75,000 yuan for the collective enterprises and 80,900 yuan for the overseas funded enterprises. The levels of technical equipment and engineering quality markedly improved in 1997. At the end of the year, the building industry boasted 117500 units of machinery and equipment, with a total power of 1.94 million kilowatts or a per worker power of 5.2 kilowatts. This was 2% higher than in the previous year. Asset liability ratio was declining while profit and tax payment were increasing. In 1997, the entire construction industry ’s assets rose by 23.2% to 62.13 billion yuan, liabilities rose by 18.2% to 47.41 billion yuan, and its asset-liability ratio fell by 3.2 percentage points to 76.3%. The industry ’s output/profit and tax payment ratio was 4.8% in 1997. The ratio for the state-owned enterprises was 4.4% and 5.8% for the collective enterprises. # Transportation, Posts and Telecommunication By further deepening reforms and accelerating development, the transportation sector in 1997 worked hard to expand transport capacity, improve transport facilities and increase cargo and passenger collecting and distributing capability. Cargo transportation in the year grew by 1.8% to 459.38 million tons. Of the total, goods and commodities transported by railway fell 6.4% to 58.17 million tons; by highway rose 3.9% to 259.91 million tons; by waterway increased 1.8% to 140.82 million tons; and by airway grew 17.1% to 480,000 tons. Cargoes handled by Shanghai port totaled 163.97 million tons in 1997, more or less the same in 1996. Passenger transport grew 15% to 60.57 million person-times in 1997. Of the total, people travelling by railway fell 0.9% to 27.29 million person-times; and by highway grew 60.2% to 22.77 million person-times; by waterway way decreased 22.3% to 3.28 million person-times; and by airway rose 8.2% to 6.73 million person-times. Posts and telecommunication expanded rapidly, with the construction of the information port project, including the Shanghai Hotline, Shanghai Golden Card, electronic payment system and other key undertakings, proceeding smoothly. The business turnover of the posts and telecommunications sector in 1997 was 10.20 billion yuan, up 33.9% over 1996. A total of 509 million pieces of mail, or 25.4% less, were handled in the year. Domestic express mail totaled 4.11 pieces, up 25.6%; and international express mail came to 490000 pieces, up 3.8%. Newspaper and magazine subscriptions totaled 1.21 billion copies, a 3.7% increase over 1996. Hardware construction grew fast in the posts and telecommunication sector. At the end of 1997, the city had a telephone switch capacity of 5.32 million lines and 3.73 million telephone users, a net increase of 700,00 users. Of the total telephone users, there were 2.79 million household telephone lines, an increase of 550,000 over the previous year. — 118 — Mobile communications continued to expand. At the end of the year, there were 750,000 mobile phone users, 389,000 more than a year earlier. • Materials and Energy In 1997, Shanghai ’s end consumption of energy was 47.59 Mtce, up 1.2% over the previous year. Of the total , the primary industry consumed 0.91 tons, down 12.4%; the secondary industry 35.65 million tons, down 2.6%; the tertiary industry 7.15 million tons, up 1.3%; and daily life 3.87 million tons, up 24%. In terms of the proportion of end consumption, the primary industry accounted for 1.9%, down 0.3% percentage point from the previous yea; the secondary industry accounted for 74.9%, down 1.6 percentage points; the tertiary industry accounted for 15%, up 0.2% percentage point; daily life accounted for 8.2%. Energy consumption by all industries was 34.98 Mtce, which represented a 0.1% increase from the previous year. In terms of fuel variety, coal consumption fell 7.4% to 6.98 million tons, coke consumption rose 2.5% to 6.54 million tons, fuel oil consumption dropped 1.3% to 1.48 million tons, and electricity consumption went up 5.7% to 30.97 billion Kwh. Shanghai ‘s consumption of main materials posted a mixed performance in 1997 due to the economic growth and industrial restructuring. Of the 14 main materials, six reported increase in consumption. Coal consumption went up 1.7%, pig iron 6.9%, steel products 1.5%, aluminum 5%, rubber 7.6% and cement 1.3%. Consumption of eight other main materials remained more or less the same levels of 1996. The rest all posted a decline in consumption. Copper consumption went down 15.1%, sulphuric acid down 3.8%, caustic soda down 7.5%, sodium carbonate down 4.7%, coke down 0.1%, log down 1.3% and timber down 9.5%. Energy consumption efficiency was improved in 1997. Energy consumption for per 10,000 yuan output value was 0.71 tee, down 11.3% from the previous year. The elastic coefficients for energy consumption and power consumption were 0.24 and 0.43 respectively. General status of Shanghai is shown in Table-1 to Table-4. - 119- Table 1-1 Gross Domestic Product (1978-1997) (Gyuan) Year Gross Domestic Primary Secondary Product Industry Industry Industry Construction 1978 27.28 1.10 21.11 20.75 0.36 1979 28.64 1.14 22.12 21.66 0.46 1980 31.19 1.01 23.61 23.09 0.52 1981 32.48 1.06 24.43 23.71 0.72 1982 33.71 1.33 24.93 24.08 0.86 1983 35.18 1.35 25.53 24.63 0.91 1984 39.09 1.73 27.54 26.32 1.22 1985 46.68 1.95 32.56 31.11 1.45 1986 49.08 1.97 33.60 31.89 1.71 1987 54.55 2.16 36.44 33.65 2.78 1988 64.83 2.74 43.31 33.95 3.35 1989 69.65 2.96 46.62 43.29 3.33 1990 75.65 3.26 48.27 44.69 3.58 1991 89.38 3.34 55.13 51.55 3.59 1992 111.43 3.42 67.74 63.67 4.07 1993 151.16 3.82 90.03 84.47 5.56 1994 197.19 4.86 114.32 106.93 7.39 1995 246.26 6.17 140.99 129.90 11.09 1996 290.22 7.16 158.25 143.91 14.34 1997 336.02 7.58 175.44 158.02 17.42 - 120 - Table 1-1 Continued (Gyuan) Year Tertiary Transportation, Wholesale, Finance Real GDP Per Industry Storage, post Retail and and Estate Capita and telecom. Catering Insurance (yuan) 1978 5.08 1.20 2.32 0.70 0.03 2498 1979 5.38 1.34 2.37 0.74 0.03 2568 1980 6.57 1.55 3.16 0.78 0.04 2738 1981 6.98 1.63 3.27 0.83 0.04 2813 1982 7.44 1.73 2.92 1.34 0.05 2877 1983 8.30 2.00 3.17 1.50 0.05 2963 1984 9.82 2.29 3.82 1.72 0.05 3259 1985 12.16 2.58 5.18 2.05 0.06 3855 1986 13.51 3.15 5.16 2.56 0.05 4008 1987 15.95 3.50 5.37 3.40 0.31 4396 1988 18.79 4.21 6.42 4.19 0.34 5161 1989 20.07 4.93 4.11 6.35 0.48 5489 1990 24.12 6.24 5.18 7.11 0.38 5910 1991 30.91 7.98 6.37 8.32 1.22 6955 1992 40.28 9.59 9.63 9.89 2.05 8652 1993 57.31 11.92 15.88 14.05 2.64 11700 1994 78.01 14.84 20.64 21.48 3.91 15204 1995 99.10 16.98 26.95 24.55 9.13 18943 1996 124.81 20.43 31.62 34.78 12.43 22275 1997 153.00 22.79 38.08 45.96 14.75 25750 Source: ’98 Statistical Yearbook of Shanghai - 121 - Table 1-2 Indices of Gross Domestic Product (1978-1997) (Use the index of 1952 as 100) Year Gross Domestic Primary Secondary Product Industry Industry Industry Construction 1978 888.0 200.5 1516.7 1562.0 511.5 1979 953.7 199.1 1647.1 1699.5 500.2 1980 1033.8 198.1 1745.9 1803.2 508.1 1981 1091.7 198.7 1831.4 1877.1 707.5 1982 1170.3 250.6 1915.6 1955.9 839.5 1983 1261.6 250.6 2061.2 2102.6 914.4 1984 1407.9 313.8 2267.3 2306.6 1091.1 1985 1596.6 244.2 2602.9 2652.6 1212.2 1986 1666.9 243.8 2707.0 2750.7 1354.0 1987 1791.9 237.2 2907.3 2937.7 1655.9 1988 1972.9 248.2 3180.6 3210.9 1856.3 1989 2032.1 248.9 3231.5 3271.9 1774.6 1990 2103.2 259.6 3322.0 3360.2 1865.1 1991 2252.5 260.6 3547.9 3655.9 1516.3 1992 2585.9 261.6 4158.1 4306.7 1633.1 1993 2971.2 254.5 4852.5 5034.5 1858.5 1994 3396.1 261.9 5541.6 5749.4 2120.5 1995 3875.0 278.7 6361.8 6571.6 2650.6 1996 4378.8 292.6 7067.9 7255.0 3310.6 1997 4934.9 304.9 7817.1 7995.0 3870.1 - 122 - Table 1-2 Continued Year Tertiary Transportation, Wholesale, Finance Real GDP Per Industry Storage, post Retail and And Estate Capita and telecom. Catering Insurance (yuan) 1978 318.4 851.4 183.6 1139.8 539.8 684.6 1979 328.0 943.4 189.3 1003.0 699.6 720.2 1980 400.8 1134.0 240.0 1222.7 799.6 764.7 1981 436.5 1186.2 264.5 1312.0 954.7 796.9 1982 495.0 1348.7 260.0 2164.8 1132.3 841.4 1983 543.5 1544.3 276.9 2359.6 1109.7 894.8 1984 623.4 1687.9 322.3 2732.4 1176.3 988.6 1985 715.0 1833.1 391.3 3067.7 1154.0 1111.8 1986 757.9 1906.4 394.0 3544.4 1065.1 1146.7 1987 825.4 1973.1 397.9 4274.5 1175.9 1216.5 1988 929.4 2085.6 461.2 5185.0 1198.2 1323.3 1989 995.4 2164.9 465.8 6548.7 1286.9 1349.3 1990 1048.2 2437.7 467.2 6961.3 1020.5 1384.5 1991 1137.3 2627.8 547.0 7135.3 1575.7 1477.1 1992 1273.8 2869.6 643.9 7784.6 1905.0 1691.8 1993 1441.9 3079.1 727.0 9193.6 2133.6 1937.8 1994 1669.7 3300.8 803.3 11924.1 2656.3 2207.0 1995 1888.4 3565.4 921.4 12568.0 7190.6 2511.6 1996 2224.5 4007.5 1029.2 16313.3 8923.5 2830.5 1997 2618.2 4344.1 1227.8 20857.4 10288.8 3181.5 Source: ’98 Statistical Yearbook of Shanghai - 123 - Table 1-3 Percentage of Main Social and Economic Indicators (1978-1997) ( % ) Employments 00 GDPS 00 Gross Output Value Year of IndustrySOO Primary Secondary Tertiary Primary Secondary Tertiary Light Heavy industry industry industry industry industry industry industry industry 1978 34.5 44.1 21.4 4.0 77.4 18.6 51.8 48.2 1979 31.6 46.4 22.0 4.0 77.2 18.8 52.3 47.7 1980 29.0 48.6 22.4 3.2 75.7 21.1 55.3 44.7 1981 27.3 50.0 22.7 3.3 75.2 21.5 58.1 41.9 1982 25.4 50.9 23.7 3.9 74.0 22.1 56.7 43.3 1983 23.0 52.7 24.3 3.8 72.6 23.6 54.8 45.2 1984 19.5 55.1 25.4 4.4 70.5 25.1 54.3 45.7 1985 16.4 57.5 26.1 4.2 69.8 26.0 52.9 47.1 1986 14.2 58.4 27.4 4.0 68.5 27.5 51.8 48.2 1987 13.0 58.8 28.2 4.0 66.8 29.2 51.9 48.1 1988 11.8 59.0 29.2 4.2 66.8 29.0 52.1 47.9 1989 11.3 59.1 29.6 4.3 66.9 28.8 51.8 48.2 1990 11.1 59.3 29.6 4.3 63.8 31.9 51.5 48.5 1991 10.4 59.0 30.6 3.7 61.7 34.6 50.1 49.9 1992 8.7 58.3 32.0 3.1 60.8 36.1 46.6 53.4 1993 9.5 57.9 32.6 2.5 59.6 37.9 42.1 57.9 1994 9.6 56.1 34.3 2.5 58.0 39.5 44.4 55.6 1995 9.8 54.5 35.7 2.5 57.3 40.2 45.5 54.5 1996 11.9 52.3 35.8 2.5 54.5 43.0 45.5 54.5 1997 12.7 49.1 38.2 2.3 52.2 45.5 44.7 55.3 Source: ’98 Statistical Yearbook of Shanghai — 124 — Table 1-3 (%) Gross Output of Agriculture^ 00 Total Investment in Fixed Assets^ 100 Year Farming Forestry Animal Fishery Capital Technical Investment Collective industry construction Updates and in Real Units and Transp. Estate Others 1978 74.9 0.3 20.1 4.7 51.8 20.1 28.1 1979 74.7 0.2 20.7 4.4 59.4 21.6 19.0 1980 61.4 0.3 33.2 5.1 56.7 24.9 18.4 1981 61.6 1.0 31.4 6.0 56.4 20.5 23.1 1982 60.0 1.0 32.6 6.4 61.2 20.2 18.6 1983 59.0 0.9 34.4 5.7 56.6 23.0 20.4 1984 63.6 0.8 30.9 5.3 51.7 24.6 23.7 1985 51.3 0.7 39.0 9.0 48.1 30.0 21.9 1986 51.3 0.7 37.8 10.2 48.6 31.9 19.5 1987 46.9 0.9 39.9 12.3 49.7 31.0 19.3 1988 43.4 0.8 41.8 14.0 47.3 31.8 20.9 1989 42.8 0.6 43.6 13.0 52.7 29.3 18.3 1990 43.3 0.5 44.4 11.8 47.8 31.6 3.6 17.0 1991 42.0 0.5 45.3 12.2 42.2 36.9 2.9 18.0 1992 41.5 0.5 46.5 11.5 36.3 35.5 3.6 24.6 1993 42.1 0.4 44.7 12.8 41.8 33.7 3.4 21.1 1994 42.9 0.4 44.2 12.5 45.5 27.1 10.5 16.9 1995 42.6 0.2 44.7 12.5 34.5 24.3 29.1 12.1 1996 432.6 0.4 42.5 13.5 33.4 21.3 33.7 11.6 1997 41.7 0.2 43.2 14.9 38.5 19.5 31.1 10.9 Source: ’98 Statistical Yearbook of Shanghai - 125 - Table 1-4 Composition of Gross Domestic Product ( %) Year GDP Primary Secondary Tertiary (Gyuan) Industry Industry industry Industry Construction Transp. Commerce 1978 27.28 4.03 77.36 76.05 1.31 18.61 4.41 8.49 1979 28.64 3.98 77.23 75.63 1.60 18.79 4.69 8.27 1980 31.19 3.24 75.70 74.02 1.68 21.06 4.95 10.14 1981 32.48 3.25 75.23 73.01 2.22 21.52 5.03 10.08 1982 33.71 3.95 73.97 71.42 2.54 22.08 5.13 8.66 1983 35.18 3.84 72.57 70.00 2.58 23.59 5.70 8.90 1984 39.09 4.41 70.45 67.34 3.12 25.14 5.87 9.78 1985 46.68 4.18 69.77 66.66 3.11 26.05 5.52 11.10 1986 49.08 4.00 68.46 64.97 3.49 27.54 6.42 10.50 1987 54.55 3.96 66.80 61.70 5.10 29.24 6.40 9.85 1988 64.83 4.22 66.80 52.37 5.17 28.98 6.49 9.90 1989 69.65 4.25 66.92 62.15 4.78 28.83 7.08 5.91 1990 75.65 4.31 63.81 59.08 4.73 31.88 8.25 6.85 1991 89.38 3.73 61.69 57.68 4.01 34.58 8.93 7.12 1992 111.43 3.06 60.79 57.14 3.65 36.15 8.61 8.64 1993 151.16 2.53 59.56 55.88 3.68 37.91 7.89 10.51 1994 197.19 2.46 57.98 54.23 3.75 39.56 7.53 10.47 1995 246.26 2.50 57.25 52.75 4.50 40.25 6.89 10.94 1996 290.22 2.47 54.53 49.59 4.94 43.00 7.04 10.89 1997 336.02 2.26 52.21 47.03 5.19 45.53 6.78 11.33 Source: ’98 Statistical Yearbook of Shanghai 1,2.2 Energy Consumption of Different Industries in Shanghai As the important industrial base and financial and commercial center of China, Shanghai has huge energy consumption. Due to the different characters of various sectors, there are obvious differences in utilization proportions of all kinds of energies in related sectors. This point can be explained by detail statistical data, see the following tables. - 126 - Table 1-5 Final Consumption of Industry Energy (1978-1997 ) Year Comprehensive Coal Coke Fuel Oil Electricity Consumption of Energy (Mt) (Mt) (Mt) (Gkwh) (Mice) 1978 16.30 4.91 2.06 1.58 12.85 1979 16.55 5.10 2.15 1.40 13.24 1980 16.45 5.35 2.12 1.22 13.69 1981 16.61 5.10 2.24 1.02 14.56 1982 17.04 5.25 2.33 0.97 15.20 1983 17.47 5.39 2.41 0.92 15.85 1984 17.90 5.34 2.50 0.86 16.49 1985 18.78 5.68 2.47 0.81 17.13 1986 19.65 5.97 3.48 0.97 18.29 1987 21.22 6.92 3.81 0.99 19.05 1988 26.67 6.43 4.12 1.26 19.53 1989 22.85 6.46 4.10 1.29 19.78 1990 23.70 5.96 4.19 1.36 20.92 1991 25.91 6.42 5.16 1.40 22.67 1992 31.51 7.01 6.17 1.71 26.28 1993 31.51 7.01 6.17 1.71 26.28 1994 32.34 6.61 6.26 1.66 27.05 1995 35.12 6.94 7.16 1.55 28.29 1996 34.57 7.54 6.38 1.50 29.30 1997 34.99 6.98 6.54 1.48 30.97 Source: ’98 Statistical Yearbook of Shanghai Figyre 1-1 Final Consumption of Industry Energy (104tce) - 127- Table 1-6 Energy Balance of Shanghai in 1996 (Physical Quantity) Coal Raw Coal Cleaned Other Briquette Coke Total Coal Washed Coal 104 tons 104 tons 104 tons 104 tons 104tons 104 tons Total Primary Energy Supply 4092.87 2993.87 1098.50 0.50 18.73 1. Indigenous Production 2. Recovery of Energy 3. Moving in from Other 4254.31 3153.38 1100.23 0.50 Provinces 4. Import 5.38 5.38 5. Chinese Airplanes & Ships in Refueling Abroad 6. Sending Out to Other -127.67 -127.67 -0.11 Provinces (-) 7. Export 8. Foreign Airplanes & Ships in Refueling in China (+) 9. Stock Change -39.15 -37.42 -1.73 Input (-) & Output(+) of -3013.26 -2212.44 -952.58 151.76 619.06 Transformation 1. Thermal Power -1825.34 -1825.34 2. Heating Supply -225.09 -225.09 3. Coal Washing 4. Coking -943.71 -934.71 638.63 5. Petroleum Refineries 6. Gas Works # Coke Input (-) -40.38 -31.51 -8.87 -19.57 7. Briquettes 21.26 -130.50 151.76 Loss 61.80 42.74 19.06 1.35 Total Final Consumption 1010.61 733.93 124.45 0.50 151.73 638.84 1. Farming, Forestry, Animal 9.85 9.85 Husbandry, Fishery 2. Industry 754.27 633.06 117.59 0.48 3.14 637.73 # Non-Energy Use 47.74 47.74 19.64 3. Construction 8.39 1.16 0.16 7.07 1.11 4. Transportation, Storage, Postal 7.31 2.01 5.28 0.02 & Telecommunications Services 5.Wholesale, Retail Trade and 5.98 1.02 4.96 Catering Service 6. Residential Consumption 156.10 19.54 136.56 Urban 51.93 19.54 32.39 Rural 104.17 104.17 7. Other 68.71 68.31 0.40 Statistical Difference 7.20 4.76 2.41 0.03 -2.40 - 128 - Table 1-6 Continued Coke Oven Other Gases Other Coking Petroleum Crude Oil Gas Products Total Products Total 108 m3 108 m3 104t 104t 104t Total Primary Energy Supply -0.91 158.44 4.08 903.31 998.44 1. Indigenous Production 2. Recovery of Energy 158.44 3. Moving in from Other 4.05 1169.68 892.79 Provinces 4. Import 200.83 104.38 5. Chinese Airplanes & Ships in 4.74 Refueling Abroad 6. Sending Out to Other -0.91 -400.50 Provinces (-) 7. Export -125.83 8. Foreign Airplanes & Ships in -4.86 Refueling in China (+) 9. Stock Change 0.03 8.75 1.27 Input & Output of 15.41 -22.61 49.79 -134.28 -995.42 Transformation 1. Thermal Power -2.18 -41.77 -83.30 2. Heating Supply 3. Coal Washing 4. Coking 22.73 -1.39 49.79 5. Petroleum Refineries 6. Gas Works -5.14 20.55 -26.79 # Coke Input (-) 7. Briquettes Loss 2.56 Total Final Consumption 14.51 133.76 52.97 755.79 0.11 1. Farming, Forestry, Animal 35.39 Husbandry, Fishery 2. Industry 14.10 120.11 52.97 386.67 0.11 # Non-Energy Use 15.45 3. Construction 0.01 16.61 4. Transportation, Storage, 0.01 233.39 Postal & Telecommunications Services 5.Wholesale, Retail Trade and 0.07 0.03 10.19 Catering Service 6. Residential Consumption 0.34 10.62 30.44 Urban 0.34 10.45 18.58 Rural 0.17 11.86 7. Other 2.98 43.10 Statistical Difference -0.01 -0.49 0.90 13.24 2.91 - 129 - Table 1-6 Continued Gasoline Kerosene Diesel Fuel Oil LPG Refinery Gas 104t 104t 104t 104t 104t 104t Total Primary Energy Supply -59.13 -2.03 38.47 122.57 -6.13 0.02 1. Indigenous Production 2. Recovery of Energy 3. Moving in from Other 47.91 113.35 106.63 9.00 Provinces 4. Import 31.10 65.30 5. Chinese Airplanes & Ships in 0.29 3.26 Refueling Abroad 6. Sending Out to Other -100.85 -4.13 -103.29 -48.01 -15.10 Provinces (-) 7. Export -4.31 -3.44 -3.10 8. Foreign Airplanes & Ships in -4.56 -0.30 Refueling in China (+) 9. Stock Change -1.88 2.10 5.02 -1.21 -0.03 0.02 Input (-) & Output(+) of 140.51 40.43 149.45 109.29 43.67 41.86 Transformation 1. Thermal Power -0.88 -82.42 2. Heating Supply -0.19 -21.80 3. Coal Washing 4. Coking 5. Petroleum Refineries 141.51 40.43 150.52 240.30 43.67 41.86 6. Gas Works -26.79 # Coke Input (-) 7. Briquettes Loss Total Final Consumption 83.04 39.83 186.31 227.43 37.99 41.86 1. Farming, Forestry, Animal 16.47 0.02 18.43 0.11 Husbandry, Fishery 2. Industry 18.37 0.88 32.82 148.69 14.27 41.86 # Non-Energy Use 0.26 0.43 2.61 0.43 0.16 3. Construction 2.53 0.01 13.58 0.28 4. Transportation, Storage, 10.58 37.92 105.28 76.58 Postal & Telecommunications Services 5.Wholesale, Retail Trade and 0.44 0.01 5.81 0.10 2.31 Catering Service 6. Residential Consumption 5.42 0.18 4.06 19.19 Urban 2.70 0.12 0.82 13.59 Rural 2.72 0.06 3.24 5.60 7. Other 29.23 0.81 6.33 1.06 1.83 Statistical Difference -1.66 -1.43 1.61 4.43 -0.45 0.02 - 130 - Table 1-6 Continued Other Petroleum Natural Gas Heat Electricity Other Energy Products 104t 10W 10,okJ 108 kwh 104tce Total Primary Energy Supply -188.90 0.70 18.97 1. Indigenous Production 2. Recovery of Energy 3. Moving in from Other Provinces 4. Import 5. Chinese Airplanes & Ships in 1.19 Refueling Abroad 6. Sending Out to Other -178.62 -41.32 Provinces (-) 7. Export -14.98 8. Foreign Airplanes & Ships in Refueling in China (+) 9. Stock Change 3.46 Input & Output of 335.93 4256.86 429.34 -18.97 Transformation 1. Thermal Power 429.34 2. Heating Supply 4409.34 3. Coal Washing 4. Coking 5. Petroleum Refineries 335.93 -18.97 6. Gas Works -152.48 # Coke Input (-) 7. Briquettes Loss 212.90 25.14 Total Final Consumption 139.22 4042.86 405.26 1. Farming, Forestry, Animal 0.36 12.82 Husbandry, Fishery 2. Industry 128.67 3871.74 293.04 # Non-Energy Use 0.21 9.78 7.48 3. Construction 3.03 0.40 6.05 4. Transportation, Storage, Postal & Telecommunications Services 5.Wholesale, Retail Trade and 1.52 5.80 16.08 Catering Service 6. Residential Consumption 1.59 124.49 34.80 Urban 1.35 124.49 28.80 Rural 0.24 6.00 7. Other 3.84 30.65 34.99 Statistical Difference 7.81 1.10 -0.36 Source: ’97 China Energy Statistical Yearbook - 131 - Table 1-7 Final Consumption of Energy in 1997 (104tce) Sectors Total Coal Coke Fuel Oil Gasolin Total 4758.82 736.19 635.00 338.88 142.62 Production Consumption 4317.10 564.47 635.00 338.88 129.57 Primary Industry 90.53 7.96 28.15 Farming, Forestry, Animal 90.53 7.96 28.15 Husbandry and Fishery Secondary Industry 3565.26 546.85 634.99 211.03 32.42 Industry 3498.84 540.41 634.94 211.01 23.12 Construction 66.42 6.44 0.05 0.02 9.30 Tertiary Industry 715.31 9.66 0.01 127.85 69.00 Transportation, Storage and 417.32 8.31 126.38 18.70 Post and Communications Wholesale, Retail Sales and 83.30 0.60 0.16 0.97 Catering Trade Living Consumption 387.72 171.72 13.05 Table 1-7 Continued (104tce) Sectors Kerosen Diesel Other Petroleum Electricit e Products y Total 68.68 286.36 187.18 1395.43 Production Consumption 68.37 278.91 183.27 1272.52 Primary Industry 0.04 24.20 0.52 29.43 Farming, Forestry, Animal 0.04 24.20 0.52 29.43 Husbandry and Fishery Secondary industry 1.09 61.71 168.34 1028.66 Industry 1.09 37.56 166.89 1004.67 Construction 24.15 1.45 23.99 Tertiary Industry 67.24 193.00 14.41 214.44 Transportation, Storage and 65.96 170.27 5.38 21.51 Post and Communications Wholesale, Retail Sales and 0.03 11.85 2.69 60.98 Catering Trade Living Consumption 0.31 7.45 3.91 122.90 Source: ’98 Statistical Yearbook of Shanghai - 132 - Table 1-8 Final Consumption of Energy in 1997 (Quantity) (104t) Sectors Coal Coke Fuel Oil Gasoline Kerosene Total 951.07 653.81 237.20 96.92 46.68 Production Consumption 729.23 653.81 237.20 88.05 46.47 Primary Industry 10.29 19.13 0.03 Farming, Forestry, Animal 10.29 19.13 0.03 Husbandry and Fishery Secondary Industry 706.46 653.80 147.71 22.03 0.74 Industry 698.14 653.75 147.70 15.71 0.74 Construction 8.32 0.05 0.01 6.32 Tertiary Industry 12.48 0.01 89.49 46.89 45.70 Transportation, Storage and 10.74 88.46 12.71 44.83 Post and Communications Wholesale, Retail Sales and 0.77 0.11 0.66 0.02 Catering Trade Others 0.97 0.01 0.92 33.52 0.85 Living Consumption 221.84 8.87 0.21 Table 1-8 Continued (104t) Sectors Diesel Other Heat Electricity Petroleum Products (10loK.J) (108 kwh) Total 196.53 147.39 3990.89 430.21 Production Consumption 191.42 144.31 3847.73 392.32 Primary Industry 16.61 0.41 9.07 Farming, Forestry, Animal 16.61 0.41 9.07 Husbandry and Fishery Secondary Industry 42.35 132.55 3804.13 317.14 Industry 25.78 131.41 3792.28 309.74 Construction 16.57 1.14 11.85 7.40 Tertiary Industry 132.46 11.35 43.60 66.11 Transportation, Storage and 116.86 4.24 0.50 6.63 Post and Communications Wholesale, Retail Sales and 8.13 2.12 6.32 18.77 Catering Trade Others 7.47 4.99 36.78 40.71 Living Consumption 5.11 3.08 143.16 37.89 Source: ’98 Statistical Yearbook of Shanghai - 133 - Table 1-9 Elasticity Ratio of Energy Consumption (1978-1997) Growth Rate of Energy Growth Rate of Growth Rate of GDP Elasticity Ratio of Elasticity Ratio Consumption Over Preceding Electricity Consumption Over Preceding Year Energy of Electricity Year Year Over Proceeding Year Consumption Consumption (%) (%) (%) 1978 6.6 10.8 15.8 0.42 0.68 1979 1.5 3.0 7.4 0.20 0.41 1980 -0.6 3.4 8.4 0.40 1981 1.0 6.4 5.6 0.18 1.14 1982 2.6 4.4 7.2 0.36 0.61 1983 2.5 4.2 7.8 0.32 0.54 1984 2.5 4.1 11.6 0.22 0.35 1985 4.9 3.9 13.4 0.37 0.29 1986 13.8 6.8 4.4 3.14 1.55 1987 4.3 4.1 7.5 0.57 0.55 1988 2.8 2.5 10.1 0.28 0.25 1989 -0.3 1.3 3.0 0.42 1990 3.7 5.8 3.5 1.06 1.66 1991 5.6 9.0 7.1 0.79 1.27 1992 5.5 10.0 14.8 0.37 0.68 1993 7.9 9.0 14.9 0.53 0.61 1994 5.8 9.1 14.3 0.41 0.64 1995 6.7 6.9 14.1 0.48 0.49 1996 7.1 6.7 13.0 0.55 0.52 1997 3.0 5.5 12.7 0.24 0.43 Source:’97 China Energy Statistical Yearbook - 134 - 1978 79 81 82 83 84 85 86 87 88 90 91 92 93 94 95 96 97 Figure 1-2 Elasticity Ratio of Energy Consumption (%) 1.2.3 Energy Consumption of Main Fields in Shanghai Total consumption of main energies by sectors in Shanghai can be seen in Table 1- 10(1997). Table 1-10 Total Energy Consumption of Different Sectors (104t) Energy Total Industry Construction Transportation, post Living Others and Consumption Telecommunication Coal 951.07 698.14 8.32 10.74 221.84 12.03 Coke 653.81 653.75 0.05 0.01 Fuel Oil 237.20 147.70 0.01 88.46 1.03 Gasoline 96.92 15.71 6.32 12.71 8.87 53.31 Kerosene 46.68 0.74 44.83 0.21 0.9 Diesel 196.53 25.78 16.57 116.86 5.11 32.21 Other Petroleum 147.39 131.41 1.14 4.24 3.08 7.52 Products Heat(GK.J) 39908.9 37922.8 118.5 5.0 1431.6 431.0 Electricity(Gkwh) 43.02 30.97 0.74 0.66 3.79 6.85 Source: ’98 Statistical Yearbook of Shanghai - 135- 1.2.4 Status and Construction Plan for Energy Infrastructure in Shanghai 1.2.4.1 Status of Energy Infrastructures Shanghai that has huge energy consumption and perfect energy infrastructure is one of the developed areas in China. In order to make Shanghai become an international metropolis, the government has enacted a series of policies that aims at strengthening the control of environment pollution. Therefore, traditional industrial boilers and residential furnaces that combust coal directly have been eliminated. At present, pipeline fuel gas and LPG are being used as main fuels and motive power for industrial and residential consumers, a perfect network of gas supply has also been built in urban areas. Furthermore, Shanghai has to import large amounts of LPG to supplement the scarce supply of energy. Therefore, the related infrastructure for receiving and conveyance of LPG has been built on a large scale. The total length of gas pipeline is 6295km in Shanghai and there are 19 gas tanks whose storing capacity are 315.4t. 1.2.4.2 Construction Plan for Energy Infrastructures in the Future Surrounding the related infrastructures, construction and plan for the adjustment of fuel gas structure, the government of Shanghai thinks that expanding the development and utilization of natural gas is one of the important measures to optimize energy resource structure. At present, the development project of Pinghu lake oil gas of East Sea will be completed in the near future and beabout to Shanghai. At the same time, the feasibility of two projects including importing liquid natural gas (LNG) and conveying natural gas from west China to east China is being investigated. (1) The Pinghu Oil Gas Field Development Project The project that is composed of two parts in upper and lower reaches began construction in September, 1995. The projects in the upper reaches include well drilling, a comprehensive platform for extracting and processing oil and gas, 13 wells producing oil and gas, two submarine pipelines conveying oil, processing plant for natural gas in New Nanhui port (S'vCSr #) and a transfer station for crude oil in Daishan (fSllj) in Zhejing ( $fr£L) Province. The planning term of gas supply is 15 years. The natural gas produced will soon be supplied to households living in Shanghai Pudong New Area. The test period will be 3 months and the volume supplied will be 0.4 Mm3/d. After this period, the volume supplied will be 0.8Mm 3/d in the first year, 1.0 Mm3/d in the next year and 1,2m3/d in the third year. The projects in lower reaches include the first station in New port, a 94km long conveying pipeline, 125km high pressure pipeline in urban areas, 18 medium or high - 136 - pressure stations, Beicai (dbH) reserve and distribution station, alternate station in case of accidents (LNG), balance facilities of Pudong Gas Plant, transfer project, the project of modem management project and the headquarter of management and production control. The primary projects for natural gas will supply 1.2 MrnVd in 2001, by then, the natural gas will account for 0.8-1% of primary energy resources consumed by Shanghai. (2) The Importation of Liquid Natural Ggas (LNG) Shanghai Planning Committee and China National Offshore Petroleum Corporation are stuying the feasibility of a project to import LNG. The important LNG resources will be selected from the countries such as Malaysia, Australia, Qatar, Yemen, Oman and Indonesia. The capacity of the first period project will be 3 Mt/a, the capacity added of the second period project will be 3 Mt/a, so the total is 6 Mt/a. According to the arrangement of LNG importation in Yangtze River Delta, the project will be developed by Shanghai and Zhejiang ($?££) Province where the receiving station will be built and the sources of natural gas will be shared by these two places. (3) Conveying natural gas from west China to east China The total volume of natural gas resources amounts to 38 Tm3, of which 60% is concentrated in the west. However, the key consuming markets for natural gas are concentrated in large cities such as Shanghai. Therefore, China National Petroleum Corporation has been investigating the feasibility of pipeline construction conveying natural gas from west to east. According to the plan, natural gas will be conveyed to the east coastal areas from the west through long distance pipeline and Shanghai is the last station of the project. This gas pipeline that will supply 10.0-15.0 Gm3/a natural gas is 4600kms. This pipeline will be constructed step by step, the part between Sichuan ( H9 jl|) and Shanghai will be started in 1999 and reach Shanghai in 2002. As an important consumer, Shanghai is very much concerned about the reliability, stability and price of gas sources. Now, Shanghai is very busy making the plan for natural gas utilization. Conveying natural gas from west to east is one of important infrastructure projects in China. (4) The consumption of natural gas Natural gas consumed by industries such as electricity, fuel gas and chemical engineering accounts for 30-40%, 20% and 40% respectively. Shanghai Jinshan Power Plant is the first natural gas power plant (0.9 MKW). Other power plants such as Caojing Power Plant, Minhang Power Plant and Ningbo Power Plant are being planned to be built. Natural gas will be used by households in Pudong New Area, later to be - 137 - extended among other consumers. At the same time, natural gas will be mixed with oven gas in Shanghai Coking Limited Company and Pudong Gas Plant. Then coal gas obtained will be conveyed to Puxi gas pipeline network. The consumers of chemical engineering purposes are Wujing Chemical Engineering Area, Shanghai Huadi Industrial Company and Shanghai Chemistry Industrial Area. In November 1998, China Petroleum Selling Company, Shanghai Coking Limited Company, Wujing Chemical Plant and Shanghai Chemistry Industry Development Company signed an intention paper regarding natural gas supply and demand. So, natural gas will gradually become a major raw material and energy resource. 1.2.5 Units Supplying Energy to Shanghai Coal consumed in Shanghai is mainly supplied by large and middle-size state owned coal mines or some local coal mimes in North China and East China. Coal gas is supplied by gas plants including Pudong Gas Plant, Wusong Gas Plant, Yangshupu Gas Plant and Shanghai Coking Plant. It is necessary to explain that the production and supply of coal gas be arranged and adjusted by Shanghai Gas Selling Corporation according to the requirements of consumers. Liquid petroleum gas (LPG) is supplied by Shanghai Petroleum Chemical Shareholding Limited Company and Shanghai Gaoqiao Petroleum Chemical Company. Furthermore, much LPG is imported from Malaysia and Australia to supplement the scarce of domestic supply. According to the future plan for energy construction in Shanghai, natural gas will be introduced from Northwest China through long gas pipeline, meanwhile, the development of East Sea Pinghu Lake () gas fields should be strengthened. All these aim at extending the scope of natural gas utilization. 1.3 Status and Future Development of Town Gas in Shanghai 1.3.1 General Status of Town Gas in Shanghai Town gas in Shanghai is mainly composed of coal gas and liquid petroleum gas. Natural gas will be used widely in the future and infrastructures for it is being built on a large scale. At present, gas utilization ratio of urban residents is over 90%. Non- residential gas developed slowly due to a variety causes. In particular, industrial consumption of gas had a trend of decrease leading to the inbalance of gas utilization of whole city. A new situation of steady utilization in winter and supply being more than demand in summer is occuring. The supply of city gas and LPG in Shanghai in the past years can be seen from Tablel-11 to Tablet-12. - 138 - Table 1 -11 Gas Supply in Shanghai (1978-1997) Total Gas Length Total Sales Production Residential Household Population Year Supply Volume Use Use With Access with Access (Gm3) (km) (Gm3) (Gm3) (Gm3) to Gas (M) to Gas (%) 1978 0.83 1312 0.83 0.49 0.34 0.55 44.9 1979 0.89 1354 0.83 0.51 0.38 0.61 50.8 1980 0.96 1414 0.90 0.51 0.44 0.66 51.7 1981 0.99 1486 0.95 0.50 0.48 0.69 53.6 1982 1.01 1558 0.98 0.49 0.50 0.73 55.8 1983 1.04 1617 0.99 0.49 0.52 0.76 54.2 1984 1.07 1688 1.04 0.50 0.54 0.80 57.0 1985 1.12 1798 1.10 0.52 0.58 0.86 61.0 1986 1.19 1910 1.15 0.52 0.63 0.91 52.5 1987 1.23 2039 1.19 0.52 0.67 0.98 54.5 1988 1.30 2212 1.22 0.51 0.70 1.06 56.7 1989 1.28 2495 1.21 0.48 0.73 1.10 54.9 1990 1.27 2700 1.22 0.45 0.76 1.13 57.9 1991 1.33 2893 1.24 0.46 0.78 1.26 62.0 1992 1.47 3145 1.38 0.47 0.91 1.42 67.3 1993 1.57 3431 1.47 0.44 1.03 1.52 67.1 1994 1.66 3938 1.49 0.39 1.09 1.69 77.3 1995 1.88 4825 1.58 0.37 1.21 1.93 86.6 1996 1.97 5294 1.71 0.34 1.36 2.07 90.8 1997 1.95 5995 1.70 0.31 1.40 2.26 Source: ’98 Statistical Yearbook of Shanghai Tablel-12 Households and Sales Volume of LPG Liquefied Petroleum Total Sales Volume Year Residential Gas Users Residential (103t) Use (103) Users 1978 5.04 4.87 34.2 33.80 1979 6.39 5.94 42.1 41.60 1980 7.92 6.91 46.3 45.60 1981 9.98 8.54 57.2 56.50 1982 22.54 14.45 87.4 86.30 1983 28.70 16.65 95.8 94.50 1984 29.72 19.83 120.7 119.00 - 139 - 1985 38.84 24.59 140.2 137.80 1986 42.63 27.12 156.8 153.90 1987 46.06 30.02 177.7 174.40 1988 46.45 33.37 207.1 203.20 1989 51.57 37.43 231.1 226.40 1990 59.69 42.70 302.3 296.40 1991 64.33 49.30 326.4 317.70 1992 68.99 47.89 332.3 325.10 1993 78.94 51.88 440 432.50 1994 122.80 65.39 565.4 557.70 1995 205.46 166.91 1561.9 1539.30 1996 231.81 191.93 1768.1 1741.40 1997 262.18 204.94 1989.6 1963.00 I3o2 Supply Status and Developing Plan of Town Gas in Shanghai 0=2,1 Status of Fuel Gas in Shanghai At present, fuel gas in Shanghai is mainly composed of coal gas and LPG. Coal gas is supplied by 5 gas plants whose producing capacity is 10.20Mm3 of which 2.0QMm3 is supplied by Pudong Gas Plant, l.SOMm3 is supplied by Wusong Gas Plant, 0.1 OMm3 is supplied by Yangshupu Gas Plant and 1.1 OMm3 is supplied by Shanghai Coking Plant. Different producing processes are adopted by various gas plants which can produce coal gases including coking oven gas, carburetor gas, heavy oil gas, light oil gas, water gas, air gas. After being mixed each other or being mixed with oil gas, the standard thermal value of gas obtained is 159Q± Q.42MJ/ m3, which is conveyed and distributed through gas pipeline network of the whole city. Production and supply are arranged and adjusted by Shanghai Gas Selling Company according to the requirements of consumers. In 1997, the total gas volume conveyed was 1.95Gm 3. Households using pipe gas were over 2.10M, industrial consumers were over 1350 and other consumers including commercial units and institutes exceeded 2.2 X 104. LPG supplied by Shanghai Gas Selling Company is mainly produced by Shanghai Petro-chemical Limited Comapany and Shanghai Gaoqiao Petrochemical Company. The difference between demand and supply is complemented by importation. In 1997, 10.9X 104 t LPG was consumed by nearly 78 X 104 households and industrial and commercial consumers which was about 870. The ratio using fuel gas is over 90% in Shanghai urban areas at present, but the utilization level is not high because total gas amount consumed by industrial and - 140 - commercial consumers, institution units and social groups is rather low. At present, fuel gas consumed in Shanghai only accounts for 6%, which is not comparable to the requirements of a modem city. Gas consumed by air conditioners and boilers is in the initial stage, while the ratio using gas of living that has seasonal features is increasingly gradually. Therefore, the difference of gas amount consumed is rather obvious, for example, in 1997, the maximum gas volume consumed a day was 8.3 8Mm 3 and the minimum volume a day is 3.72Mm3. 1.3.2.2 Future Plan for City Gas in Shanghai The production and consumption of energy in Shanghai must be sustainable. Therefore, it is very urgent to optimize the present structure of energy. The optimizing goals of energy structure in Shanghai can be seen in Tablet-13. Table 1-13 Optimizing Goals of Energy Structure in Shanghai (2010) Present Proportion of Future Proportion of Planning Amount Energy Total Energy Supply Total Energy Supply (%) (%) (Mtce) Coal 70 50-60 40-50 Oil 3 20-30 16-24 Natural Gas — 7-10 7-8 Hydraulic and 10-13 8-10 Nuclear Electricity While optimizing the energy structure of Shanghai, it will be an important task to adjust present composition of city gas, of which expanding the development and utilization and improving present status of natural gas should be paid more attention to. At present, the development project of Pinghu Lake Gas-oil Fields of East China Sea has been completed and natural gas supply will be realized at the end of 1999. It is predicted that natural gas supply of the first period project of East China Sea will amount to 1.20Mm3 per day by 2001, which will account for 0.8-1% of total energy consumption of the whole city. At the same time, Shanghai Planning Committee and China National Offshore Petroleum Corporation are studying the feasibility of importing LNG. The capacity of the first period project will be 3.00Mt/a and the additional capacity of the second period project will be 3.00Mt/a, so the total is 6.00Mt/a. - 141 - 1.3.3 Raw Material Structure of Town Gas in Shanghai City 1.3.3.1 Raw Material Structure of Coal Gas Coal gas is supplied by 5 gas producing enterprises including Pudong Gas Plant, Shanghai Meishan Metallurgical Company, Shanghai Baoshan Steel & Iron Plant and Coking Plant of Shanghai Pacific Group Company whose capacity of gas supply is 10.20Mm3. The raw material structure of coal gas can be seen in Table 1-14. Table 1-14 Raw Material Structure of Main Gas Production Enterprises in Shanghai Total Coal Kinds of Coal (Mt) Enterprises Consumed Gas Fat 1/3 Primary Lean (Mt) Coal Coal Coking Coking Coal Coal Coal Baoshan Steel & Iron Plant 6.31 2.52 1.89 1.89 Meishan Metallurgical Company 1.76 0.70 0.35 0.53 0.18 Coking Plant of Shanghai Pacific 2.51 0.75 0.50 0.75 0.50 Group Company Pudong Gas Plant 0.75 0.75 1.3.3.2 Raw Material Structures of LPG and Natural Gas LPG that is supplied by Shanghai Gas Selling Company is mainly produced by Shanghai Petrochemical Limited Company and Shanghai Gaoqiao Petrochemical Company. The difference between demand and supply is complemented by importation. The data for raw material structure can not be obtained because it is kept a secret. At present, natural gas is not widely used in Shanghai. In the near future, natural gas will be conveyed to Shanghai from Pinghu (f #) Gas-oil Fields of East China Sea through long pipeline and submarine pipe. Meanwhile, natural gas introduced from Xinjiang (Sr 11) Autonomous region through long pipeline for conveying natural gas from west China to east can meet the demand of households and industrial consumers to a large degree. 1.3.4 Key Production Equipment in Gas Producing Enterprises in Shanghai The key production equipment of gas producing enterprises can be seen in Table 1- 15. — 142 — Table 1-15 Key Production Equipment of Synthetic Gas in Shanghai Enterprises Key production equipment SrBtfc MESSES Baoshan Steel & Iron plant JNX60-87 Coking Oven (4) JNX60-92 Coking Oven (3) Meishan Metallurgical Company JN43-58 Coking Oven (2) JN43-82 Coking Oven (1) Coking Plant of Shanghai Pacific Ocean Ft BP Coking Oven (2) Group Company JN43-58 Coking Oven (3) Pudong Gas Plant JN43-80 Coking Oven (2) 1.3.5 Pipeline Net of Town Gas in Shanghai Shanghai has a rather perfect supply and distributing network of town gas that is composed of Puxi gas pipeline net and Pudong pipeline net.These two nets are connected by submarine pipe for natural gas. There are also mixing facilities and storage tank with super with a very large volume of gas from Shanghai Coking Limited Company and Pudong Gas Plant. At present, the total length of gas pipeline is 6464.5km, of which the length of coal gas is 6295km and the length of LPG is 169.5km. The length of gas pipe in Pudong New Area is 1049km. Furthermore, in 2002 or so, as the last station of “the project conveying natural gas from West China to East China”, Shanghai will have a pipeline system for conveying and distributing of natural gas on a large scale. 1.3.6 Construction Plan for Gas Equipment in Shanghai The construction plan of gas equipment in Shanghai is concerned with several issues: limiting the pipeline construction for coal gas, strengthening the construction of the system for conveying and distributing natural gas and related projects, and building a new port receiving system and freezing tanks fror LPG imported. Concrete plans are shown in the following list. (1) The development project of East Sea Pinghu Lake Gas Field The projects in upper reaches include well drilling, a comprehensive platform for extracting and processing oil and gas, 13 wells producing oil and gas, two submarine pipelines conveying oil, Processing plant of natural gas in New Nanhui port and a transfer station of crude oil in Daishan in Zhejing Province. The total investment is 5.05 GYuan including 466 M$. Shanghai Petroleum and Natural Gas Company is responsible for operation and construction of the projects in upper reaches. 143 — The projects in lower reaches include the first station in New port, 94km long conveying pipeline, Chuansha and Baicai stations, 125km high pressure pipeline in urban areas, 18 medium or high pressure stations, Beicai reserve and distribution station, alternate station in case of accidents (LNG), balance facilities of Pudong Gas Plant, transfer project, the project of modem management and headquarter of management and production control network. The total investment is 1.41 GYuan including 59.0 M$. Shanghai Conveyance and Distribution Company of Shanghai Gas Selling Group is responsible for the construction, production and management. (2) The importation of liquid natural gas (LNG) According to the arrangement of LNG importation in Yangtze River Delta, the project will be developed by Shanghai and Zhejiang Province where the receiving station will be built and the sources of natural gas will be shared in by these two places. (3) Conveying natural gas from west China to east China China National Petroleum Corporation has been investigating the feasibility of pipeline construction conveying natural gas from west to east. According to the plan, natural gas will be conveyed to east coastal areas from the west through long distance pipeline and Shanghai is the last station of the project. This gas pipeline with the supply of 10.0-15.0 Gm3/a natural gas is 4600kms. This pipeline will be constructed step by step, the part of it between Sichuan and Shanghai will be started in 1999 and reach Shanghai in 2002. As an important consumer, Shanghai is very much concerned about the reliability, stability of gas sources and the price of gas. Now, Shanghai is very busy to make the plan of natural gas utilization. The project of conveying natural gas from west to east has been one of important infrastructures in China. (4) Freezing Tank of LNG To make importing LNG a reality, Shanghai Petrochemical Limited Company that cooperated with USA Continental Chemical & Chemistry Industry Company and Japanese Mitsubish Company to build a freezing tank with 5 X 104t storing capacity that has been put into opertion. 1.3.7 Relative Measurements Regarding Use of Natural Gas At present, fuel gases are mainly composed of coal gas, refinery gas, liquid petroleum gas and natural gas, of which coal gas is main source of fuel gases, then are liquid petroleum gas, refinery gas and natural gas. Therefore, present gas facilities and conveying and distributing pipe net are mainly suitable for coal gas. They must be modified when conveying natural gas. — 144 — Concrete ways are as follows: (1) When a cast pipe is used to convey natural gas, it must be modified or dismantled. A soft nylon pipe should be attached to the inner wall of the iron pipe or a PE (polyethylene) should be passed through the cast pipe. Another way is to build a new PE pipe network. The first two are more difficult to complete than the last. (2) The original low and middle pressure controller should be modified or changed. The present low pressure and middle pressure controller can be modified by the way of installing a filter and safety valve. (3) Combustor of appliances using fuel gas can be modified by changing the diameter of the jet and area of fire tube as well as adjusting the air volume introduced. Furthermore, the independent and complete conveying and distributing systems of natural gas should be built in the cities along long pipelines. At the last station of “the project conveying natural gas from west China to east China”, Shanghai should build pipe system for conveyance and distribution of oil gas or LPG. This is because the mixed gas of LPG and air has the same effect as the characteristics of natural gas combustion, so it is called transitional gas. The pipeline system for conveying and distributing system of LPG should be designed in accord with the characteristics of natural gas so as to transit smoothly. - 145- ret,-: If mm _t fk i|T — 146 — 2 Shanxi (Taiyuan ) 2.1 Reasons for Selecting Shanxi (Taiyuan) 2.1.1 Geograhpical Location and Transportation Shanxi (ll] W ) is a central inland province lies to southwest of north China. Its north is connected with the Inner Mongolia (A #"6") Autonomous Region by the Great Wall. Its west is divided by the Yellow River with Shaan’xi (Province. Its south borders on Henan (MW) Province and its southeast and east are next to Henan (MW) Province and Hebei (M4b) Province along Taihang Mountain. The width between east and west is 290km and the length between south and north is 540km. Total area is 156600km2. Transportation is mostly railway and road. Tongpu (XM — M!§£$$) Railway crosses the whole province from south to north. Its north end is connected with the Beijing-Baotou (db^ —^^) Railway and Baotou- Lanzhou (#,^ — ^#1) Railway through Datong () station. Shanxi Province is also connected with the Beijing-Guangzhou (db^C--T'i'll ) Railway and Jiaozuo- Zhicheng (#{$ — R# ) Railway by the Taiyuan-Jiaozuo ( ) Railway. Beijing-Yuanping ( it M ~ jOi ) Railway connects Beijing with Tianjin and Tangshan. Several railway branches with Taiyuan (;fcHO as the center connect the main mining areas and main lines to form a railway net. Therefore, coal produced by Shanxi Province can be transported to the Beijing- Tianjin-Tangshan area, northeast China, Central China as well as all over the country. It is also transported to east China and South China by railway and water way Furthermore, the coal is exported to other countries through Qinhuangdao (#A% ) port, Lianyungang (i&zr#) port and Qingdao (W Sj ) port. The highway system of Shanxi Province is very good. Several main lines with Taiyuan (yklUO as the center include the Taiyuan-Fenglingdu (^ Jj§ — JxU§?3SD Highway, Taiyuan-Luoyang (^ClE —SPB) Highway, Shijiazhuang- Taiyuan (T=f#(j3: —yk#l) Highway and Taiyuan-Datong (^i^ — ^c|WJ) Highway. There are also many branch lines connected to local coal mines on small scale with railway stations and main highway lines to form the other net for transporting the coal from Shanxi to other areas. 2.1.2 Resource Superiority of Coal in Shanxi The coal reserves of Shanxi Province are abundant and distributed extensively. The area with coal reserves is 5.82 X 104km2 accounting for 37% of a total area of 15.66 X 104km2. There are six large coalfields including the Datong () coalfield, Ningwu (fiK) coalfield, Xishan (Mill) coalfield, Qinshui ('vlvJO coalfield, - 147 - Hedong (MS) coalfield and Huoxi (Se5) coalfield from north to south. General status of coal distribution is as follows: lean coal, meager-lean coal, meager coal and anthracite are mainly distributed in the southeast of the Qinshui (vC'ZjO coalfield. Primary coal and fat coal are mainly distributed in the central area of Huoxi (1E@) coalfield, west of the Qinshui ('KvjO coalfield, central and south of Hedong (M S) coalfield and northwest of the Xishan (@lil ) coalfield (esp. Huoxi coalfield ) . Gas coal, 1/3 coking coal, long flame coal and weakly caking coal are distributed intensively in the northern Datong (SIr)) coalfield and north of the Ningwu ( t St) and Hedong (MS) coalfields. The general status of the above coalfields can be seen in Table2-1. Table 2-1 General Status of All Coalfields Coal Fields Area (km2) Coal Kinds Daton (S ) 1888 Weakly Caking Coal, Gas Coal Ningwu (SS) 3538 Gas Coal (1/3 Coking Coal) Xishan ( ill) 1598 Primary coking coal, Lean coal, Meager Coal Qinshui (^6/JO 32490 Primary Coal, Lean Coal, Meager Coal, Anthracite Huoxi (#@) 3984 Gas Coal, Fat Coal, Lean Coal Hedong (MS) 16312 Fat Coal, Primary Coking Coal, Lean Coal Others 2019 Gas Coal, Fat Coal, Lean Coal, Primary coking Coal, Long Flame Coal, Anthracite, Lignite The coal reserves of Shanxi Province account for over 1/4 of total reserves in China and all kinds of coal are distributed extensively. Coking coal accounts for about 62% of the total reserves of Shanxi Province and non-coking coal accounts for 38%. Anthracite accounts for 20% of the total province reserves and gas coal that has the maximum reserves accounts for 60% of the total coking coal. From the standpoint of coal qualities, the coal produced by Shanxi Province with low ash content and low sulfur content is the best. Taiyuan is the capital of Shanxi Province with a high population density and huge energy consumption. However, present composition of energy of which coal has a large proportion is not ideal and has lead to serious environmental pollution. It is well known that Taiyuan has become the city who pollution is the most serious in the world now. Therefore, it is necessary to develop fuel gas rapidly using the abundant coal resources suitable for producing coal gas and convenient transportation net. Altogether, it is a good choice to select Shanxi Province. A large city such as - 148 - Taiyuan, as a base for promotion and application of coal hydrogasification technology, can perfect this technology to a large degree. This will help improve the local ecological environment and promote the steady development of related industries. 2.2 Status and Future of Energy Supply and Demand in Shanxi 2.2.1 Status of Industrial Structure Shanxi Province lies to the west of the North China Plain and to the south of the Inner Mongolia Plateau. Many mountains, highlands, hills and basins are distributed in this area. The coal reserves are very abundant in this province and the area with coal accounts for 37% of the total area. As the base of energy production in China, Shanxi Province has a well developed railway net for transportation. Some kinds of heavy industries that have a close relationship with the coal industry account for a large proportion of industrial composition. In 1997, Gross Domestic Product was 148.01G yuan, of which primary industry accounted for 13.0%, secondary industry accounted for 53.30% and tertiary industry accounted for 33.7%. • Investment into fixed assets Investment into fixed assets is increasing continuously. In 1997, investment into fixed assets was 39.84 Gyuan of which state owned units accounted for 29.46 Gyuan, collective units accounted for 2.53 Gyuan, and individuals of urban and rural areas accounted for 4.2 Gyuan. Investment into capital construction was 21.44Gyuan, and investment into technical updating and transformation was 8.76 billion yuan. # Foreign Economic Relations and Trade With the gradual decrease of coal industry, Shanxi Province has adjusted the industrial structure and focused on the international market, leading to steady growth of foreign trade. In 1997, the total import and export of foreign trade amounted to 1.95 GUS dollars, of which export was valued at 1.64 GUS dollars and import 0.31GUS dollars. In 1997, the province actually received 454.32 M US dollars of foreign investment. The economic level of Shanxi Province is explained by the following figures and tables. - 149 - Table2-2 Gross Domestic Product of Shanxi Province (1997) Year GDP GDP Per (GYuan) Primary Secondary Tertiary Capita Industry Industry Industry Construction Industry (Yuan) 1978 8.80 1.82 5.15 4.81 0.33 1.83 365 1980 10.88 2.06 6.35 5.82 0.53 2.46 442 1985 21.90 4.23 12.01 10.21 1.79 5.67 838 1986 23.51 3.79 12.82 10.89 1.94 6.90 890 1987 25.72 3.91 13.80 11.81 4.99 8.02 962 1988 31.67 4.85 16.33 14.22 2.11 10.49 1168 1989 37.63 6.37 18.87 16.91 1.97 12.38 1367 1990 42.93 8.08 21.01 18.66 2.35 13.84 1528 1991 46.85 6.88 23.63 21.08 2.55 16.35 1592 1992 57.01 8.29 28.93 25.94 2.98 19.79 1913 1993 70.46 9.73 36.64 32.69 3.95 24.10 2352 1994 85.38 12.38 44.08 39.02 5.06 28.91 2819 1995 109.25 16.87 54.51 48.71 5.81 37.87 3569 1996 130.80 19.83 67.04 59.95 7.09 43.93 4229 1997 148.01 19.18 78.95 70.30 8.64 49.88 4736 Source: ’98 Statistical Yearbook of Shanxi Table2-3 Composition of Gross Domestic Product Gross Year Domestic Primary Secondary Tertiary Product Product Product Industry Industry Construction 1978 100.00 20.7 58.5 54.7 3 20.8 1980 100.00 19.0 583 53.5 3 22.6 1985 100.00 "19J 543 3 25.9 1986 100.00 16.1 54.5 46.3 3 29.4 1987 100.00 15.2 53.6 45.9 7/7 31.2 1988 100.00 15.3 51.6 44.9 6J 33.1 1989 100.00 16.9 503 45.0 32 32.9 1990 100.00 1.88 483 43.4 33 32.3 1991 100.00 14.7 504 45.0 33 34.9 1992 100.00 143" 5(3 45.6 52 34.7 1993 "Tl8 523 46.4 33 34.2 1994 100.00 14.5 3l3 45.7 33 33.9 1995 100.00 15.4 493 44.6 33 34.7 1996 100.00 15.2 33 45.8 33 33.6 1997 100.00 13.0 33 47.5 33 33.7 - 150- 2000 1480. 1 1978 1985 1990 1997 Figure 2-1 Gross Domestic Product in Some Major Years (108 Yuan) Table 2-4 Structure of Industries and Main Economic Indicators Farming, Output of Major Agricultural Products (HP t) Year GDP Forestry, (G yuan) Animal Primary Secondary Tertiary Husbandry, Output of Industry Industry Industry Fishery Grain Cotton Rapeseed Pork And (G Yuan) Beef 1978 8.80 1.82 5.15 1.83 2.90 706.96 6.94 4.23 18.23 1979 10.64 2.27 6.27 2.11 3.68 800.69 6.49 7.64 13.90 1980 10.88 2.06 6.35 2.46 3.82 685.71 7.75 13.37 17.34 1981 12.17 3.11 6.45 2.61 4.60 725.00 6.75 12.10 20.54 1982 13.92 3.73 7.02 3.16 5.31 825.00 12.08 21.21 18.66 1983 15.51 3.78 8.26 3.47 5.38 806.00 9.62 23.72 18.15 1984 19.74 4.62 10.31 4.81 6.51 872.00 13.31 36.71 21.37 1985 21.90 4.23 12.01 5.67 6.29 822.68 7.35 44.45 20.85 1986 23.51 3.79 12.82 6.90 5.88 723.43 6.44 35.17 20.80 1987 25.72 3.91 13.80 8.02 6.14 712.49 7.79 30.81 20.62 1988 31.67 4.85 16.33 10.49 8.72 818.30 8.68 34.25 21.19 1989 37.63 6.37 18.87 12.38 10.49 879.10 10.21 29.81 23.12 1990 42.93 8.08 21.01 13.84 12.48 969.01 11.15 39.38 29.27 1991 46.85 6.88 23.63 16.35 11.30 742.40 11.18 29.77 33.31 1992 57.01 8.29 28.93 19.79 13.14 858.30 9.48 33.69 35.06 1993 70.46 9.73 36.64 24.10 15.53 990.20 7.00 39.66 39.51 1994 85.38 12.38 44.08 28.91 21.90 890.40 8.48 43.78 46.04 1995 109.25 16.87 54.51 37.87 29.97 917.10 9.08 22.26 56.09 1996 130.80 19.83 67.04 43.93 35.26 1077.1 7.24 37.29 66.05 1997 148.01 19.18 78.95 49.88 34.08 901.87 4.44 28.05 61.60 | - 151 - Table 2-4 Continued Output Output of Major Products Year Value of Industry Light Heavy Coal Electricit Steel Steel Cement Total Output Total Industry (G Yuan) Industry (Mt) y (Mt) Products (Mt) of Energy Consp. (G kwh) (Mt) (Mtce) (Mtce) 1978 10.64 3.61 7.03 98.25 10.66 1.20 0.74 2.56 83.66 27.60 1979 12.07 4.12 7.95 108.93 11.41 1.37 0.88 2.69 92.77 32.66 1980 12.63 4.56 8.08 121.03 12.02 1.49 0.86 2.88 103.10 33.94 1981 12.89 4.94 7.95 135.25 12.46 1.38 0.70 2.71 112.89 32.69 1982 14.18 5.11 9.07 145.32 13.69 1.50 0.82 3.12 123.77 34.87 1983 16.63 6.02 10.61 159.18 15.13 1.59 0.92 3.62 135.57 34.78 1984 19.46 7.20 12.26 187.16 16.75 1.76 1.03 4.01 159.37 36.28 1985 23.75 9.44 14.37 214.18 18.46 1.84 1.11 4.59 182.37 40.00 1986 24.91 10.41 15.77 221.80 22.00 1.90 1.16 5.21 188.82 42.01 1987 30.43 18.59 21.84 231.64 26.34 2.04 1.20 5.42 197.14 44.23 1988 38.72 11.16 27.56 246.48 27.77 2.16 1.28 5.73 209.81 47.99 1989 48.77 13.10 35.67 275.01 30.31 2.28 1.33 6.34 234.13 47.19 1990 53.84 13.74 40.10 285.97 31.42 2.39 1.29 6.12 243.41 47.10 1991 60.15 15.18 44.97 291.62 34.14 2.52 1.25 6.75 248.16 48.02 1992 74.41 18.09 56.32 296.87 38.42 2.79 1.50 8.15 252.62 50.34 1993 109.53 22.16 87.37 310.15 41.78 3.14 1.67 9.67 263.95 54.73 1994 143.74 30.91 112.83 323.97 45.69 3.33 1.86 10.35 277.60 61.82 1995 183.91 30.44 122.17 347.31 50.60 3.40 2.17 11.70 297.61 71.79 1996 205.51 42.31 163.20 348.81 52.69 3.56 2.54 13.08 296.85 68.04 1997 235.10 47.53 187.57 338.43 54.60 3.99 2.79 14.20 288.01 56.78 Source: ’98 Statistical Yearbook of Shanxi - 152 - Table2-5 Major National Economic Indicators Percent on other years (1997) % Average Growth Rate Per Year % Indicators 1978 1985 1990 1995 1996 1979-1997 1986-1997 1991-1997 Gross Domestic Product 512.3 264.6 198.3 122.7 110.5 8.98 8.45 10.27 Primary Industry 207.6 145.2 124.1 106.2 95.0 3.92 3.16 3.13 Secondary Industry 567.8 301.4 229.2 128.7 114.6 9.57 9.63 12.58 Tertiary Industry 744.3 288.7 195.7 119.8 110.3 11.14 9.24 10.07 Agricultural Production Total Output Value of 236.8 158.8 133.8 108.2 94.7 4.64 3.93 4.25 Farming, Forestry, Animal Husbandry and Fishery Output of Main Agricultural Products Grain 127.6 109.6 93.1 98.3 83.7 1.29 0.77 -1.02 Cotton 63.9 60.4 39.8 48.9 61.3 -2.33 -4.11 -12.33 Rapeseed 663.0 63.1 71.2 126.0 75.2 10.47 3.76 -4.74 Pork, beef 283.0 247.4 176.3 92.0 78.1 5.63 7.84 8.44 Industrial Production Total Output Value of 872.1 513.4 283.6 145.9 116.0 12.07 14.61 16.06 Industry Outputs of Main Industrial Products Coal 344.4 158.0 118.3 97.4 97.0 6.73 3.89 2.43 Electricity 511.9 295.7 173.7 107.8 103.6 8.97 9.46 8.21 Steel 332.4 217.0 167.1 117.4 112.1 6.53 6.67 7.61 Finished Steel Materials 376.5 251.6 216.4 128.4 109.8 7.23 7.99 11.66 Cement 554.9 309.6 231.9 121.4 108.6 9.44 9.88 12.77 Production and Consumption (Standard Coal) of Energy Resources Total Output of Energy 344.2 157.9 118.3 96.7 97.0 6.72 3.88 2.43 Total Consumption of 201.1 138.8 117.9 77.4 81.6 3.75 2.77 2.38 Energy Source: ’98 Statistical Yearbook of Shanxi - 153 - Table 2-6 Major Percentage Indicators of the National Economy (%) Indicators 1978 1985 1990 1995 1996 1997 Percentage of Three Industries Accounting for GDP Primary Industry 20.7 19.3 18.8 15.4 15.2 13.0 Secondary Industry 58.5 54.8 48.9 49.9 51.4 53.3 Tertiary Industry 20.8 25.9 32.3 34.7 33.4 33.7 Percentage of Light and Heavy Industry Accounting for Total Output Value of Industry Light Industry 23.5 24.7 23.3 20.3 19.2 19.2 Heavy Industry 76.5 75.3 76.7 79.7 80.8 80.8 Inner Percentage of Light Industry Using Farming Products as Raw Materials 78.3 73.1 67.5 64.2 62.6 63.7 Using Non-farming Products as Raw Materials 21.7 26.9 32.5 35.8 37.4 36.3 Inner Percentage off Heavy Industry Mining Industry 40.1 44.5 38.0 29.8 30.5 31.9 Raw Material Industry 28.2 27.8 32.6 42.6 42.1 46.0 Processing Industry 31.7 27.7 29.4 27.6 27.4 22.1 Inner Percentage off Total Output Value off Agricultural Output Value of Farming 78.3 74.4 72.2 62.2 62.5 64.0 Output Value of Forestry 7.0 7.4 4.9 5.9 5.7 6.1 Output Value of Animal Husbandry 14.6 18.1 22.6 31.5 31.4 29.4 Output Value of Fishery 0.1 0.1 0.3 0.4 0.4 0.5 Investment Percentage off Energy, Transportation, Post and Telecommunication Energy Industry 37.8 57.0 29.2 33.7 42.7 Transportation, Post and 12.4 15.4 36.4 28.3 20.2 Telecommunication Utilization Percentage of Energy Primary Industry 9.3 6.1 5.9 5.7 6.1 Secondary Industry 64.8 72.0 73.2 75.4 75.3 Tertiary Industry 4.0 5.7 6.5 6.4 6.7 Living Consumption 21.9 16.2 14.4 12.5 11.9 Source: ’98 Statistical Yearbook of Shanxi - 154 - 2.2.2 Energy Demand and Supply of Different Industries in Shanxi Province Due to the different character of various sectors, there are obvious differences in utilization proportions of all kinds of energies in related sectors. This point can be explained by statistical data in the following tables. Table 2-7 Ultimate Consumption and Composition of Energy (1997 ) (Mice) Cleaned Coal Natural Gas, and Other Petroleum Electricity Items Total Coal Coke Coal Gas Washed Coal Products and Others Total Consumption 56.78 21.60 0.57 12.53 2.77 5.03 14.28 Primary Industry 3.49 0.95 0.00 1.04 0.49 0.31 0.69 Farming, Forestry, Animal 3.49 0.95 0.00 1.04 0.49 0.31 0.69 Husbandry, Fishery Secondary Industry 42.73 15.79 0.42 10.05 1.09 4.11 11.26 Industry 41.95 15.30 0.42 10.01 0.97 4.07 11.18 Light Industry 3.84 1.97 0.02 0.51 0.11 0.35 0.88 Heavy Industry 38.12 13.34 0.40 9.50 0.86 3.72 10.30 Construction 0.78 0.49 0.00 0.04 0.13 0.04 0.08 Tertiary Industry 3.80 1.32 0.00 0.26 1.17 0.32 0.73 Transportation, Storage, Post 1.95 0.38 0.00 0.02 1.01 0.17 0.37 and Tele-communications Wholesale, Retailing and 0.59 0.18 0.00 0.22 0.03 0.05 0.12 Catering Others 1.26 0.76 0.00 0.02 0.13 0.11 0.24 Living Consumption 6.77 3.53 0.14 1.19 0.01 0.29 1.60 Constitute of Sectors (%) Total Consumption 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Primary Industry 6.14 4.42 8.28 11.47 6.21 4.77 Farming, Forestry, Animal 6.14 4.42 8.28 11.47 6.20 4.77 Husbandry and Fishery Secondary Industry 75.25 73.13 74.42 80.21 42.43 81.67 77.77 Industry 73.88 70.85 74.42 79.90 37.52 80.90 77.19 Light Industry 6.76 9.10 4.27 4.07 4.23 6.92 6.09 Heavy Industry 67.13 61.75 70.14 75.83 33.03 74.00 69.76 Construction 1.37 2.27 0.31 4.90 0.75 0.57 Tertiary Industry 6.69 6.11 2.05 45.53 6.36 5.02 Transportation, Storage, Post 3.43 1.76 0.15 39.18 3.34 2.57 and Telecommunications Wholesale, Retailing and 1.04 0.83 1.72 1.21 0.89 0.82 Catering - 155 - Cleaned Coal Natural Gas, and Other Items Total Coal Coke Petroleum Electricity Coal Gas Washed Coal Products and Others Others 2.22 3.52 0.19 5.13 2.12 1.63 Living Consumption 11.92 16.35 25.58 946 0.57 5.77 11.08 Constitute of Varieties (%) Total Consumption 100.00 38.04 1.00 22.07 4.53 8 86 25.50 Primary Industry 100.00 27.35 29.76 14.10 8 96 19.83 Farming, Forestry, Animal 100.00 27.35 29.76 14.10 8 96 19.83 Husbandry and Fishery Secondary Industry 100.00 36.96 0.99 23.52 2.55 9.62 26.36 Industry 100.00 36.48 1.00 23.87 2.30 9.70 26.65 Light Industry 100.00 51.23 0.64 13.28 2.83 9.07 22.95 Heavy Industry 100.00 34.84 1.04 24.93 2.25 9.77 27.03 Construction 100.00 62.91 4.99 16.18 4.82 10.64 Tertiary Industry 100.00 34.75 6.77 30.83 8.43 19.13 Transportation, Storage, Post 100.00 19.53 0.95 51.70 8.63 19.19 and Telecommunications Wholesale, Retailing and 100.00 30.44 36.06 5.20 7.63 20.67 Catering Others 100.00 60.35 1.85 10.48 848 18.75 Living Consumption 100.00 52.14 2.14 17.51 0.22 4.29 23.70 Source: ’98 Statistical Yearbook of Shanxi - 156 - Table 2-8 Elasticity Ratio of Energy Production (%) Percentage Percentage points of Percentage points Elasticity of Elasticity of Year points above electricity above the of GDP above the Energy Electricity previous year previous year previous year Production Production 1980 11.10 5.38 0.10 111.10 53.80 1985 14.46 10.18 5.80 2.49 1.76 1986 3.54 19.19 5.70 0.62 3.37 1987 4.33 19.73 4.60 0.94 4.29 1988 6.49 5.44 6.60 0.98 0.82 1989 11.49 9.14 4.50 0.39 2.03 1990 3.96 3.64 4.40 0.90 0.83 1991 1.62 8.66 3.30 0.49 2.62 1992 5.83 12.53 12.80 0.46 0.98 1993 5.80 8.76 12.50 0.46 0.70 1994 1.25 9.35 9.10 0.14 1.03 1995 5.26 10.73 11.20 0.47 0.96 1996 0.97 5.62 11.00 0.09 0.51 1997 0.97 2.20 10.60 0.09 0.21 Source: ’98 Statistical Yearbook of Shanxi Table 2-9 Elasticity Ratio of Energy Consumption (%) Percentage Percentage points of energy points of coal Percentage Percentage points Elasticity of Elasticity of Elasticity of Year production consumption points of of GDP above Energy Coal Electricity above previous above previous electricity above previous year Consumption Consumption Consumption year year previous year 1980 3.92 8.31 -4.22 0.10 39.20 83.10 42.30 1985 10.25 7.20 14.85 5.80 1.77 1.24 2.56 1986 5.03 2.37 14.49 5.70 0.88 0.42 2.54 1987 5.30 -1.71 19.32 4.60 1.15 0.37 4.20 1988 8.49 8.09 11.17 6.60 1.29 1.24 1.69 1989 -1.66 -16.40 7.51 4.50 -0.37 -3.64 1.67 1990 -0.19 -12.57 2.98 4.40 0.04 -2.86 0.68 1991 1.95 4.34 4.67 3.30 0.59 1.32 1.42 1992 4.68 -4.68 10.15 12.80 0.37 -0.37 0.79 1993 8.70 1.89 10.02 12.50 0.70 0.15 0.80 1994 9.00 1.43 8.00 9.10 0.99 0.16 0.88 1995 10.03 5.85 10.82 11.20 0.90 0.52 0.97 1996 3.92 3.32 7.95 11.00 0.36 0.30 0.72 1997 -1.95 -7.52 3.53 10.60 -0.18 -0.71 0.33 - 157 - Table -10 Total Consumption of Coal (Mt) Consumption of Living Production and Year Total Generating Coking Synthetic Consumption Construction Ammonia 1978 39.49 30.65 7.05 7.13 1.26 8 84 1980 43.26 33.78 7.27 6.42 1.25 9.48 1985 55.66 45.39 10.28 11.69 1.33 10.27 1986 58.56 48.27 11.83 11.07 1.25 10.29 1987 62.22 51.90 13.57 12.27 1.98 10.32 1988 66.37 56.08 14.94 17.17 2.39 10.29 1989 72.09 64.07 16.46 20.91 2.74 8.02 1990 72.92 64.51 16.92 23.83 2.56 8.41 1991 74.20 75.70 18.13 22.44 2.70 8.50 1992 75.58 68.76 20.17 23.09 2.84 682 1993 86.39 80.07 22.63 29.51 299 6.32 1994 94.62 88.50 23.92 36.83 6.12 1995 133.73 127.57 27.17 72.64 6.16 1996 141.44 135.16 28.69 73.97 628 1997 133.27 128.06 29.14 69 58 5.21 Table 2-11 Production and Consumption of Primary and Secondary Energy Output of Percentage points of total Percentage of Year Primary energy production ( % ) Primary Energy Processed and Energy Coal Hydro Gas Coal Cleaned Coke Converted (%) ( Mtce ) electricity Electricity Coal 1980 103.10 99.71 0.18 0.04 11.28 4.68 3.02 3.57 1985 182.37 99 82 0.16 0.02 8.85 4.06 2.23 2.56 1986 188.82 99.84 0.14 0.02 11.56 4.72 3.48 3.36 1987 197.14 99.87 0.10 0.03 12.83 5.48 4.16 3.19 1988 209.81 99.86 0.12 0.02 14.27 5.40 4.87 4.00 1989 234.13 99.84 0.14 0.02 16.28 5.37 5.05 5.86 1990 243.41 99 86 0.13 0.01 17.08 5.37 5.29 6.42 1991 248.16 99.89 0.10 0.01 17.64 5.76 6.18 5.70 1992 252.62 99.89 0.10 0.01 20.45 6.20 7.27 6.98 1993 263.95 99.88 0.10 0.01 23.88 6.41 9.08 8.39 1994 277.60 99.89 0.10 0.01 30.88 6.55 11.04 13.30 1995 297.61 98.88 0.10 0.02 38.73 6.77 14.67 17.80 1996 296.85 99.88 0.10 0.02 39.91 7.17 15.08 17.66 1997 288.01 99.88 0.08 0.04 41.37 7.58 15.99 17.81 - 158 - Table 2-12 Consumption of Petroleum Products and Coke Petroleum Year Products Industry and Agriculture Coke (t) Consumption of Consumption of (tee) Transportation Production Construction 1980 1084440 684270 351519 2995572 2553669 9840 1985 1582990 913600 462500 3698900 3118000 17500 1986 1644100 1055200 350100 4074700 3558000 12300 1987 1882900 1186600 418200 4514000 3868000 12900 1988 1813800 1256300 428900 5267000 4594100 12800 1989 1799500 1287100 382000 6198300 5503600 11900 1990 1987500 1481400 380400 8326800 7611200 12100 1991 2004000 1512700 359600 6825900 6361000 11100 1992 2177600 1654600 381800 9289100 7563700 23000 1993 2352300 1676200 396000 11034200 8416400 24600 1994 2565400 1820500 439700 12023200 9433200 41000 1995 2581000 1828700 449300 12764800 10114700 40800 1996 2582600 1843400 447600 12528100 11008500 41200 1997 2770000 1973600 492000 12900300 11679900 40000 Source: ’98 Statistical Yearbook of Shanxi 2.2.3 Energy Demand and Supply of Different Industries Total professional consumption of major energies in Shanxi Province can be seen in Table 2-13. Table2-13 Total Consumption of Major Energies by Sectors Transportation and Construction Name Unit Total Industry Post Residential Telecommunication Use Coal Mt 57.78 51.77 0.11 0.69 5.21 Coke Mt 7.11 5.89 0.002 0.0001 1.22 Coking Oven Gas Mm3 1072.17 1071.82 0.35 Other Gas Mm3 5472.82 5472.41 0.41 Gasoline 103t 201.68 113.63 16.20 65.84 6.00 Kerosene 103t 8.84 8.20 0.46 0.18 Diesel 103t 345.60 186.41 17.99 141.20 Fuel Oil 103t 137.95 137.95 0.001 Electricity Gkwh 28.52 25.46 0.24 0.45 2.36 Source: ’98 Statistical Yearbook of Shanxi - 159 - 2.2.4 Status and Construction Plan for Energy Facilities in Shanxi Province Shanxi is a major province producing coal and is also a developing base for the coal processing industry and related industries. Both industrial consumers and urban residents of major cities in this province use pipe gas as fuel and power. Farmers in rural areas combust coal directly for their everyday lives. Because of special state polices and superior energy advantage, Shanxi Province has very good energy facilities as well as a developed transportation net for coal and many fuel gas pipelines. For example, Taiyuan, the capital of this province, has an excellent gas supply system. At present, the total length of gas pipelines is 1230.59km, and there are 7 gasholders with storing capacity of 36.7 X 104m3. These facilities can meet the requirements of urban residents to a large degree. The investment into capital construction and newly increased fixed assets for the energy industry can be seen in the following tables. Table 2-14 Investment into Capital Construction for the Energy Industry Investment (GYuan) Percentage (Using Investment as 100) Period Energy Energy Industry Transp. Industry Transp. Coal Electricity ,Post and Coal Electricity Post and Telecom. Telecom. “Sixth Five-Year Plan” 5.79 3.81 1.79 1.72 41.3 27.2 12.8 12.3 “Seventh Five-Year Plan” 13.06 7.89 4.79 4.18 49.0 29.6 18.0 15.7 “ Eighh Five-Year Plan” 23.14 11.89 10.64 13.90 39.1 20.1 18.0 215 1996 5.52 3.13 2.22 4.64 33.7 19.1 13.6 28.3 1997 9 16 4.12 4.82 4.34 42.7 19.2 22.5 20.2 Source: ’98 Statistical Yearbook of Shanxi Table 2-15 Investment into Technical Updating and Transformation for the Energy Industry Absolute Investment (G yuan ) Percentage (Using Investment as 100) Period Energy Coal Electricity Energy Coal Electricity Industry Industry 1993 2.00 1.74 0.25 68.2 33.2 4.8 1994 1.82 1.60 0.20 31.0 27.2 3.4 1995 2.46 2.24 0.21 37.7 34.3 3.2 1996 3.25 2.76 0.42 43.1 33.9 8.4 1997 3.09 2.46 0.41 35.3 28.1 4.7 Source: ’98 Statistical Yearbook of Shanxi - 160- 2.2.5 Methods of Supplying Energy in Shanxi Province Coal consumed by Shanxi Province is supplied by state owned coal mines and local coal mines. Various kinds of coal with different qualities can meet the demands of different industries. Taiyuan and other cities have their own producing enterprises and supply system for coal gas. LPG and fuel oil that are sold and managed by local gas selling companies are supplied by oil refining plants all over the country. Furthermore, the long Shaanxi-Beijing natural gas pipeline is beneficial to cities distributed along it. 2.3 Status and Future Development of Town Gas in Shanxi 2.3.1 Status of Fuel Gas The fuel gas of Taiyuan is composed of coal gas and LPG, while natural gas is not used at present. Table2-16 General status of city fuel gas in Taiyuan Coal Gas Liquid Petroleum Gas Year Total Volume Population Using Total Amount Population Using Supplied (Mm3) Gas CIO4) Supplied (t) Gas (104) 1991 153.52 91.1 766 4.9 1992 165.89 95.3 1006 7.3 1993 170.19 103.7 1622 9.4 1994 183.64 110.4 3546 28.7 1995 257.83 117.0 18000 214.1 2.3.2 Raw Material Structure of Town Gas in Shanxi Province Shanxi Province is very abundant in coal resources sutiable for producing gas. Therefore, the gas producing enterprises of major cities in this province produce coal gas to be used as fuel and raw material for households and industrial consumers. The amounts of coal producing gas in past years can be seen in Table 2-17. - 161 - Table 2-17 Amounts of Coal Producing Gas and Output of Gas Raw material of coking Raw material output of Coking output of gas producing Year Coal Cleaned of gas Coke Coking oven Coking Other gases Coal producing gas oven gas (Mt) (Mt) (104t) (Mt) (Mm3) (Mm3) (Mm3) 1978 5.22 1.91 3.57 0.00 0.00 0.00 1980 4.74 1.68 3.21 0.00 0.00 0.00 1985 8.34 2.35 5.69 553.64 0.00 0.00 1986 8.46 2.61 18.96 6.76 712.00 0.00 581.00 1987 9.49 2.78 18.86 8.43 695.00 0.00 564.00 1988 10.79 3.38 10.51 677.00 0.00 0.00 1989 15.90 4.98 53.74 13.91 827.00 57.00 1744.00 1990 17.73 6.10 72.59 15.87 816.00 94.00 1364.00 1991 14.66 7.76 75.60 14.55 862.00 67.00 1642.00 1992 13.81 9.27 77.97 18.15 906.00 131.00 1652.00 1993 14.84 14.64 47.05 22.72 1185.00 0.00 1523.00 1994 15.55 21.26 90 51 27.10 1475.00 0.00 2001.00 1995 39.64 32.99 63.97 52.95 1598.00 11.00 2300.00 1996 42.78 31.19 68.75 53.94 1619.00 11.00 2387.00 1997 35.99 33.29 53.24 52.79 1666.00 0.00 2226.00 Source: ’98 Statistical Yearbook of Shanxi Gas producing enterprises in Taiyuan include the Coking Plant of Taiyuan Coal Gasification Company, Coking Plant of Taiyuan Steel & Iron Limited Company, Coking Plant of Taiyuan Chemical Industry Group and Coal Gasification Company of Xishan Bureau. The raw material structure of these enterprises can be seen in Table 2- 18. Table2-18 Raw Material Structure of Major Gas Producing Enterprises in Taiyuan Total Coal Coal Kinds (104t) Enterprises Consm. Gas Fat 1/3 Coking Primary Lean (104t) Coal Coal Coal Coal Coal Coking Plant of Taiyuan Coal Gasification Company 100 25 35 40 Coking Plant of Taiyuan Steeel & Iron Limited Company 160 8 72 72 8 Coking Plant of Taiyuan Chemical Industry Group 55.43 16.63 22.17 16.63 Coal Gasification Company of Xishan Bureau 15 4.5 6.0 4.5 LPG consumed by Shanxi Province is mainly purchased from oil refining plants and oil gas plants in other areas, so it is very difficult to master and understand the raw material structure. — 162 — 2.3.3 Key Production Equipment in Gas Producing Enterprises in Taiyuan 2.3.3.1 Key Production Equipment for Coal Gas The key equipment of major gas producing enterprises in Taiyuan is listed in Table 2-19. Table 2-19 Key Equipment of Major Gas Producing Enterprises in Taiyuan Enterprises Key Producing Equipment Coking Plant of Taiyuan Coal 5811 Type 36 X 2 ?L Coking Oven (2) Gasification Company JTL43-80 Type36 ?L Coking Oven (1) Coking Plant of Taiyuan Steeel & Iron 5811 Type 65 ?L Coking Oven (1) Group Limited Company JN-80 Type S 65 ?L Coking Oven (2) Coking Plant of Taiyuan Chemical 35 ?L Industry Group JN-28DR Type Coking Oven2 X 35 ?L Coal Gasification Company of Xishan eI 66-4 S 2 X 25 Bureau 2.3.3.2 Production Facilities for LPG in Taiyuan There is no enterprises producing LPG in Taiyuan. Therefore, bottled LPG consumed by households and industrial consumers is mainly purchased from other places. At present, there are 51542 steel bottles. 2.3.4 Pipeline Net for Town Gas in Shanxi (Taiyuan) Shanxi is a major province producing coal and is very abundant in coal resources suitable for producing coal gas. Therefore, major cities in this province have their own enterprises producing gas. For example, in Taiyaun, coal gas is mainly produced and supplied by the Taiyaun Coal Gasification Limited Company. At present, the total length of gas pipeline in urban areas is 1230.59km and there are 7 large size gas tanks. In Yangquan, a famous coal city, the total length of gas pipeline is 149.6km. 2.3.5 Construction Plan for City Fuel Gas Facilities The construction plan for gas facilities focuses on developing coal gas rapidly based on its resource advantage, maintaining and modifying present gas facilities and constructing a new conveying and distributing pipe net for gas. LPG is still purchased from other places. — 163 — LU W # - 164 - e !# ■K 165 3Shenhua 3.1 Reasons for Selecting Shenhua Coal hydrogasification is a technology to produce methane using coal as a substitute for natural gas. Because coal is the main feedstock in this technology, consideration of coal and coal mines is especially important. If the coal is suitable for hydrogasification, coal reserves and production scale, personnel resources, facilities, transportation and other supporting conditions should also be considered. The Shenhua (Shenfu- Dongsheng) coal mine district (simplified as “S-D” mine district) located in north Shaanxi next to Inner Mongolia is considered to be a suitable region for coal hydrogasification. The Shenfu-Dongsheng Limited Company under Shenhua Group Corporation runs production and management of Shenfu-Dongsheng coal mines. The S-D mine district will become the largest coal production base in China. At present, S- D mine district has reached 20 million tons of capacity a year. There is huge market requirement for high Btu gas from coal hydrogasification in the S-D mine district. The reasons are as follows: there is a natural gas transportation pipeline up to Beijing (ibB.) , down to Xian (MS:) , and through the north part of Shenmu (f$7jO County 65 km away from the S-D mine district. Baotou C'Sijk) is 210 km away, Huhehaote (Of#0)%#) is 365 km away and Dongsheng (SBf ) is 80 km away from S-D mine district. If a coal hydro gasification plant is built up in S-D mine district, coal transportation can be reduced to decrease transportation cost and environmental pollution caused by coal transportation. Residual slag from the coal hydrogasification plant would be easy to treat on site to avoid waste solid pollution. The S-D mine district is far away from densely populated cities, and land cost and salary levels are lower in S-D mine district. The Shenhua Group Corporation is a super group to manage coal production and coal business as well as other production and business such as railway. Besides the Shenfu- Dongsheng coal mines, the Shenhua Group Corporation owns Baotou (fg.&) Coal Bureau, Haibowan ( M Wl fW ) Coal Bureau, Wuda (-S, ) Coal Bureau and Zhungeer (##r/T ) Coal Company, which were key state owned coal mine bureaus. Shenhua Group Corporation pays great attention to coal hydrogasification. It is thought possible to build a coal hydrogasification plant in Shenfu-Dongsheng coal mine district and to transport substitute natural gas to Beijing using the existing pipeline. The Shenhua Group Corporation has positive attitude to coal hydrogasification in the S-D - 166 - mine district and thinks that it is consistent with the long term development plan for the S-D mine district. 3.1.1 Brief Introduction of Regions Near The Coal Mine District S-D mine district locates in Shenmu county of Yulin district, Shaanxi province. The Yulin (##) district, one of the poorer districts in China, has 3.14 7 million people, 5.83 Gyuan of GDP with 1856 yuan per capita. The Yulin (#$K) district includes 12 counties/cities and its capital is Yulin (##) city. Shenmu (#7jt) County, where the Shenfu-Dongsheng coal mine district islocated, has 346,000 people. 54,000 is non- agricultural population and 148,000 live in towns. In 1997, Shenmu (#7fc) county had 1.28 Gyuan of GDP with 3734 yuan per capita, which is the richest county in Yulin (##) district. 3.1.2 Brief Introduction of S-D Mine District Coal production and railway construction in S-D mine district have reached a certain scale. The Bao-Shen railway, invested in mainly by Shenhua Group Corporation, was completed in October 1989. Shen-Shuo (# Tfc — ^Jii ) line of Shen-Huang (#7^ —###) railway was completed in July, 1996. The last section of the Shuo-Huang (#U'N — line is under construction. It is estimated that total Shen-Huang (#7^ —###) railway will be completed in 2003. A special use railway runs along big mines, a coal processing plant and a commissary in S-D mine district, which provides very convinient transportation conditions for coal hydrogasification plant construction in S-D mine district. Water resources in S-D mine district are relative shortage. It is 100 km from S-D mine district to the Yellow River. Water introduction from Yellow River to S-D mine district is considered as a long term project for solving the water shortage in S-D mine district. There is sufficient electricity supply in S-D mine district. The existing and proposed power net can only meet the requirements of coal mines, the coal processing plant and other consumers. Electric power from Dianta (/£ igr ) power station owned by Shenhua Group Corporation can meet the requirement for the proposed coal hydrogasification plant. At Dianta (/£*§) power station, with a maximum 110 kV level, the first 2 X 12 MW of installed capacity has been put into operation, one set of the second 2 X 100 MW of installed capacity has also been put into operation and the - 167 - third 2 X 300 MW of installed capacity will be constructed. Many facilities such as commissaries, hospitals, first aid stations, fire stations, workshops, a truck transportation center and water supply project have been completed in S-D mine district. This will provide very good conditions for coal hydrogasification construction in S-D mine district. 3.1.3 Brief Introduction of Gas Production in S D Mine District In Daliuta ( #P fir ) of Shenrnu (# 40 county, there is a gas station. Gas resources are from 1.6m two stage water coal gasifiers that produce gas with 2400 kcal/M3 of heating value for use by more than 9000 staff in S-D mine district. 3.2 Status and Future of Energy Demand and Supply in Shaanxi Because S-D mine district is located in Shaanxi (KM) Province, it is necessary to talk about energy supply and requirements in Shaanxi Province. 3.2.1 Brief Introduction of Shaanxi Province Shaanxi (KM) Province is simplified as Qing (#) or Shaan ( K) and its capital is Xian (MS) city located at 105°29'^~110°15' E and 31 °42'—39°35' N. The east edge of Shaanxi (KM) is separated by the Yellow River and next to Shanxi (ill M) Province, the west edge of Shaanxi (KM) is next to Gansu (##) Province and Ningxia ( SJO Hui Autonomous Region, the north edge of Shaanxi (KM) is next to Inner Mongolia ( 4] IE "If ) , the south edge of Shaanxi (KM) is next to Sichuan (MJI|) Province and the south-east edge of Shaanxi (KM) is next to Henan (MS) Province and Hubei (#^k) Province. In 1997, the 7 cities, ruled by the Province were Xian (MS ) , Tongchuan ) , Baoji () , Xianyang (JpJtPB) , Weinan (MS) , Hanzhong ($.40 and Yanan (31S) . The 3 districts, ruled by the Province, are Shangluo (W?#) , Ankang (SBO and Yulin (##) • The are 6 cities ruled by the district, 83 counties, 18 districts ruled by cities and 2135 towns. In Shaaxi (KM) Province, there are many natural and cultural heritages such as Huashan ) , Lishan (Hill) , Tiantaishan (7c o ill) and Qin dynasty terracotta warriors and horses, and many historical cities such as Xian (MS) , Yanan () , Hancheng (##) , Yulin (##) , Xianyang (JbJc PH) and Hanzhong ($4) . By the end of 1997, in Shaanxi (KM) Province, there were 35.7 million people - 168 - representing 2.9% of the national population, 132.60 Gyuan of GDP accounting for 1.8% of that of China with 3707 yuan of GDP per capita to account last one but two. Also in 1997, fiscal income was 8.41 Gyuan and fiscal expenditure was 14.01 Gyuan in Shaanxi ( RH ) Province that is a developing province in China. Shaanxi ( R® ) Province covers 205,600 square meters with the higher elevation the north and the south, the lower parts in the middle; higher part of the west and lower part of the east. In north Shaanxi (RM) , there is the Yellow-soil plateau; in middle Shaanxi (R#) there is the Guanzhong plateau, and in south Shaanxi (RM ) there is the Qinba mountainous region. In Shaanxi (RM) , there are rich natural resources. 137 kinds of minerals have been found in Shaanxi (R@) . There are 92 kinds of minerals with proven reserves and 983 mineral production places. Proven reserves of about 60 kinds of minerals are the leading number in China. In Shaanxi (RM) there are 161.86 Gt of coal reserves in third place, 300 G m3 of natural gas reserves in second place and 460 Mt of petroleum reserves in 10th place in China. In 1997, coal output in Shaanxi ( R@ ) was 49.49 Mt accounting for 3.6% of that of China. Key coal mines in Shaanxi ( RH) are Pubai (# E=| ) Coal Bureau, Chenghe (##) coal mines, Tongchuan (#jl|) coal mines, Hancheng (#%) coalmines, Huanglin (ji®) coal mines and Shenfu (#/#) coal mines. In the same year, crude oil output in Shaanxi ( RUl ) was 2.86 Mt accounting for 1.8% of that of China. Natural gas output, mainly produced in Yanan district in north Shaanxi (R]S)) , was 95.57 Mm3 of which 740,000 m3 were used by about 163,700 citizens. Coal gas consumption is 77.45 Mm3 in Shaanxi ( RH ) . 3.2.2 Status of Industry Structure in Shaanxi Province 3.2.2.1 Status of Industry Structure in Shaanxi Province Agriculture is the dominant industry in Shaanxi ( RM ) Province. Total population is 35.7 million. 7.67 million are non-agricultural population accounting for 21.85 % of that of the Province. In Xian (S S ) city, capital of Shaanxi ( RM ) Province, there is a non-agricultural population of 2.67 million accounting for 35% of that of Shaanxi ( RM) Province. Therefore, the main economy in Shaanxi (RM) is concentrated in Xian (M:$c) . - 169- Employment statistics, in 1997 showed that 17.92 million were employed of which 59% were engaged in primary industry, 22% in secondary industry and 19% in tertiary industry of the 3.392 million working in secondary industry, 225,000 were engaged in themining industry, 2.141 million in manufacturing industry, 82,000 in the utility industry and 940,000 in the architecture industry. It can be concluded that Shaanxi (R B ) Province has a poor industry base. The mining industry and manufacturing industry are dominant in the secondary industry in Shaanxi (RB) Province. Table 3-1 shows the composition of industries in Shaanxi (RB) Province and Table 3-2 shows the main economy indices. S.2.2.2 Future of Industry Structure in Shaanxi Province It seems to be a difficult thing to change the industry structure in Shaanxi (RB) Province over a long period. From Table 3-1 it can be seen that the proportion of primary industry in GDP was decreasing while the proportion of tertiary industry was increasing. Table 3-3 shows GDP values and its rate of increase due to different industries in Shaanxi (RB) Province. It can be seen from Table 3-3 that although there have been no big changes in industry structure, the rates of increase of secondary industry and tertiary industry are bigger than that of primary industry. Since it is a developing region, Shaanxi (RB ) province has great potential to develop its local economy. It is predicted GDP growth from 1996 to 2000 in Shaanxi ( KB) will be 9.5%, about 8% from 2001 to 2010, and about 7% in the following years. The predicted GDP values are shown in Table 3-4. It can be seen that by 2020, GDP will increase to 668.59 Gyuan, 5 times of that of 100.00 Gyuan in 1995. By 2000, the proportion of primary industry in GDP will decrease to 18.29, and by 2050 it will decrease to about 10% compared with 22.7% of that in 1995. By 2000, proportion of tertiary industry in GDP will increase to 40.93, and by 2050 it will increase to 60% compared with 36.7% of that in 1995. - 170 - Table 3-1 Industry Structure Composition in Shaanxi Province (%) Year GDP Primary Secondary industry Tertiary industry industry (Gyuan) Industry Architect Trans.& Commerce ure Commun. 1978 8.13 3.04 5.21 1.75 1980 9.52 2.99 5.04 1.98 1985 18.14 2.94 4.48 2.58 1990 40.43 2.61 3.89 3.32 0.57 3.50 0.76 0.55 1991 46.68 2.50 3.98 3.37 0.61 3.52 0.67 0.65 1992 53.84 2.36 4.06 3.46 0.60 3.58 0.71 0.63 1993 66.14 2.25 4.22 3.50 0.72 3.53 0.73 0.56 1994 81.66 2.23 4.12 3.41 0.71 3.65 0.74 0.53 1995 100.00 2.27 4.06 3.39 0.67 3.67 0.74 0.62 1996 117.54 2.24 4.04 3.36 0.68 3.72 0.79 0.64 1997 132.60 2.05 4.19 3.44 0.75 3.76 0.80 0.66 Source: 98 Statistical Yearbook of Shaanxi Table 3-2 Main Economic Indices in Shaanxi Province Items 1978 1990 1995 1996 1997 1. GDP Gyuan 8.13 40.51 100.00 117.54 132.60 2. main agriculture outputs: grains 104t 800 1071 913 1217 1044 Oil crops 104t 5.56 33.39 38.15 37.42 36.71 Fruits 104t 33.41 62.03 283.96 362.15 326.55 Meats 104t 14.20 44.44 71.59 69.76 74.03 3. main industry output: Coal 104t 1666 3328 4248 4614 4949 Crude oil 104t 6.03 70.11 167 221 286 Power generated Gwkh 6.61 14.97 23.68 26.87 26.98 Steel 104t 24.29 49.05 53.67 54.07 47.95 Chemical fertilizer 104t 13.69 47.85 68.46 83.21 81.91 Source: 98 Statistical Yearbook of Shaanxi - 171 - Table 3-3 GDP and Composition in Shaanxi Province (Gyuan) GDP per capita year GDP Primary Secondary industry Tertiary industry Gyuan industry (yuan) Absolute value based on the original price 1978 8.13 2.47 4.24 1.42 294 1979 9.48 3.25 4.49 1.74 337 1980 9.52 2.85 4.79 1.88 338 1981 10.24 3.54 4.66 2.04 360 1982 11.23 3.70 5.07 2.46 389 1983 12.38 4.00 5.56 2.82 424 1984 14.98 5.10 6.36 3.52 508 1985 18.14 5.34 8.12 4.67 608 1986 20.88 5.80 9.15 5.93 690 1987 24.55 6.78 10.51 7.26 796 1988 31.50 8.27 13.37 9.86 1006 1989 35.91 9.13 15.03 11.75 1126 1990 40.43 10.56 15.71 14.17 1244 1991 ' 46.68 11.69 18.58 16.42 1412 1992 53.84 12.70 21.89 19.44 1593 1993 66.14 14.87 27.94 23.35 1930 1994 81.66 18.18 33.61 29.87 2344 1995 100.00 22.73 40.55 36.73 2843 1996 117.54 26.27 47.50 43.76 3313 1997 132.60 27.15 55.59 49.87 3707 Increase rate (at comparable price, based on one year ago, %) 1978 11 -1.6 14.7 22.2 15.5 1979 7.5 9.1 2.7 23.7 10.0 1980 7.3 9.0 6.4 7.9 -2.0 1981 4.5 13.7 -3.7 8.1 3.5 1982 9.1 6.5 8.5 15.3 7.6 1983 7.3 1.5 9.5 12.7 6.3 1984 17.8 12.5 20.0 21.9 16.9 1985 16.5 -0.7 21.9 31 15.1 1986 8.7 4.6 5.9 18.2 7.7 1987 10.0 1.8 10.8 16.6 7.8 1988 20.8 5.3 25.0 27.9 19.2 1989 3.3 6.5 2.8 1.6 1.4 1990 3.4 5.3 1.8 4.5 1.3 1991 7.0 6.8 12.6 0.8 5.4 1992 9.8 3.1 9.0 16.1 8.0 1993 12.0 9.6 14.5 10.9 12.2 1994 7.9 -2.5 15.2 6.9 9.2 1995 9.0 4.5 14 5.2 7.9 1996 10.2 12 11.6 7.2 9.3 1997 10.0 0.3 14.2 10.2 9.1 Source: 98 Statistical Yearbook of Shaanxi - 172 - Table 3-4 Predicted GDP for S laanxi Province year GDP increase rate GDP value (%) (Gyuan) 1995 100.00 1996-2000 9.5 157.43 2001-2010 8 339.88 2011-2020 7 668.59 2021-2030 7 1315.22 2031-2040 7 2587.23 2041-2050 7 5089.48 #: Data provided by Shaanxi Planning Commission 3.2.3 Energy Production and Consumption By Sector 3.2.3.1 Energy Production and Consumption In 1997, total energy output was 39.83 Mt of standard coal, an increase of 5.5% compared with that in 1996. Total consumption was 30.69 Mt of standard coal an increase of 2.3% compared with that in 1996. Shaanxi Province is an energy export province. In Shaanxi Province, the energy increase coefficient is 0.55, elasticity ratio of energy consumption is 0.23 and total conversion efficiency of energy is 64.30%. Fig. 3-1 shows a comparison of energy output and consumption in recent years. It can be seen that energy output was always greater than energy consumption in Shaanxi Province. 3.2.3.2 Composition of Energy Output and Consumption in Shaanxi Province Energy output and consumption, the composition of energy output and consumption and the elasticity ratio of primary energy consumption in Shaanxi Province are shown in Table 3-5, Table 3-6 and Table 3-7 respectively. It can be seen that besides hydropower energy, other energy output is increasing with crude oil and natural gas output increasing more rapidly than others. It can be also seen that besides petroleum, other kinds of energies such as coal, natural gas and power are more than sufficient. While Shaanxi Province is a big province for energy production, it is a small province for energy consumption. It can be seen from the elasticity ratio of primary energy consumption that after 1996, the rate of increase of GDP is much greater than that of energy consumption - 173 - Table 3-6 Primary Energy Composition of Shaanxi Province (%) Output Year Total output Coal Crude oil Natural gas hydropower 1993 100 91.9 6.1 0.1 1.9 1994 100 91.8 6.6 0.1 1.5 1995 100 91.64 7.2 0.08 0.94 1996 100 90.82 8 0.06 1.07 1997 100 88.75 10.27 0.29 0.69 Consumption Year Total Coal Crude oil Natural gas hydropower Consumption 1993 100 87.0 10.5 0.1 2.4 1994 100 86.2 11.5 0.1 2.2 1995 100 86.46 12.01 0.16 1.21 1996 100 86.25 12.84 0.06 0.77 1997 100 84.39 14.75 0.25 0.61 Source: 98 Statistical Yearbook of Shaanxi Table 3-7 Elasticity Ratio of Primary Energy Consumption of Shaanxi Province Year Increase rate of energy Increase rate of GDP (%) Elasticity coefficient of consumption (%) energy consumption 1993 1.46 12.00 0.12 1994 4.95 7.90 0.62 1995 10.39 9.00 1.15 1996 4.60 10.20 0.45 1997 2.25 10.00 0.23 Source: 98 Statistical Yearbook of Shaanxi 3.2.3.3 Energy Production and Consumption and Purpose for Which Used Energy supply and requirements and purposes for which used in Shaanxi Province in 1997 are shown in Table 3-8. It can be seen from Table 3-8 that 151,100 tons of coal were consumed by primary industry, 10.50 Mt of coals and 15.63 Gkwh of power were consumed by industry, 13.67 Mt of coal were consumed for power generation and 24.71 Gkwh of power were generated from thermal power generation. Energy consumption of 1997 by different departments is shown in Table 3-9. - 175 - Table 3-8 Energy Balance of Shaanxi Province in 1997 Total Coal Crude Gasoline Diesel Heavy Electric energy oil oil power 104tce 104t 104t 104t 104t 104t Gkwh 1. Available energy for 3110.70 3786.69 291.22 22.11 -2.36 -16.97 1.13 consumption in the province 1.1 Stocks at the beginning of 532.57 577.75 12.40 9.49 13.05 8.17 year 1.2 Primary energy output 4045.21 4949.20 286.24 2.25 1.3 Import from other provinces 612.46 399.18 21.61 35.70 26.84 19.40 1.30 1.4 Import from other countries 1.5 Export to other provinces -1206.57 -1222.05 -8.18 -9.59 -32.18 -39.88 -2.02 1.6 Export to other countries -143.09 -55.73 1.7 Stocks at the end of year -729.88 -816.66 -20.85 -13.49 -10.07 -4.66 2 input (-) and output (+) for -91.87 -2156.47 -289.57 73.14 90.81 48.38 24.73 conversion 2.1 Thermal power generation -1366.57 -4.33 24.71 2.2 Heat supply 0.56 -78.70 -1.08 0.02 2.3 Coal processing -19.52 -450.61 2.4 Coking -12.15 -208.38 2.5 Oil refine -56.99 -289.57 73.14 96.22 48.38 2.6 Gas-making -1.41 -7.19 2.7 Coal product processing -2.43 -45.02 3 Losses 97.32 2.45 4 Terminal consumption 2921.41 1630.22 1.65 95.25 88.45 31.41 23.82 4.1 Agriculture 130.03 15.11 6.26 17.71 0.01 2.09 4.2 Industry 1889.49 1050.28 1.65 36.24 34.90 29.38 15.63 4.3 Architecture 52.86 30.61 6.41 3.90 0.70 0.25 4.4 Trans. & Commun. 193.99 44.59 31.10 23.41 1.01 1.24 4.5 Commerce 55.50 15.11 8.74 3.26 0.68 4.6 Civil use 461.30 397.02 2.50 4.7 Others 138.16 77.50 6.50 5.27 0.22 1.43 Source: 98 Statistical Yearbook of Shaanxi - 176 - Table 3-9 Petroleum and Coal Consumption with Different Departments in 1997 (104t) Departments Coal Crude oil Gasoline Kerosene Diesel Heavy oil Consumption 1755.18 1.65 95.25 18.97 88.45 31.41 Agriculture 15.11 6.26 17.71 0.01 Industry 1050.28 1.65 36.24 1.50 34.90 29.38 Architecture 30.61 6.41 0.02 3.90 0.70 Trans. & Commun. 44.59 31.10 16.89 23.41 1.10 Commerce 15.11 8.74 3.26 Others 77.50 6.50 0.39 5.27 0.22 Civil use 397.02 0.10 3.2.4 Status and Future Plan of Energy Utility Facilities in Shaanxi Province 3.2.4.1 Coal Coal resources in Shaanxi (RW) Province are third in China after Shanxi ( illH) Province and Inner Mongolia ( WiX) . There are more than 160 Gt of coal reserves and about 500 Gt of coal output, 35% of which is contributed by key state owned coal bureaus and 65% by local coal bureaus and coal mines in Shaanxi ( ) . The typical key state owned coal bureaus are Tongchuan (#UH ) coal Bureau, Hancheng (#%) Coal Bureau, Pubai (#6) Coal Bureau, Chenghe (##) Coal Bureau, Cuijiagou (##(#)) coal mine, Cangcun (^W) coal mine , newly established Huangling (#1^) Coal Bureau and Daliuta coal mine of Shenfu Coal Company. The checked capacities of these Bureaus/mines are as follows: Table 3-10 The Capacity of Main Mines in Shaanxi Province Name Coal types Workable reserve(Mt) Capacity(Mt) Tongchuan (# Coking coal, lean coal and non- 477 6.96 Hancheng (##) lean coal and poor lean coal 960 3.60 Pubai (Sti) poor lean coal 139 2.30 Chenghe (## ) lean coal 149 2.75 Cuijiagou Long flame coal 145 1.00 Cangcun ) Weak caking coal 19 0.75 Huangling non-caking coal 100 0.40 Daliuta ) Long flame coal 850 6.00 In the future, the Shenfu-Dongsheng coal field will be the key development district. Coal from Shenfu-Dongsheng coal field will be transported to Huanghua (##) Harbou via the Shen-Huang —###) railway of 820 km in length. Huanghua (iMr#) Harbour has 30 Mt of capacity after completion of its 1st project. Daliuta (X coal mine, the largest coal mine in'China put into production in 1996, has 6 Mt - 177 - of capacity a year. Sheranu to Shuozhou ) line of Shen-Huang (# 7^ —railway has been put into operation. 3.2.4.2 Petroleum and Natural Gas In Shaanxi () Province in 1996, there was 2.21 Mt of crude oil output accounting for 1.4 of that in China, and in 1997, there was 2.86 Mt of crude oil output accounting for 1.8 of that in China. There are Shaanganning (——fX) Basin oil & gas field and Erduosi ( # /E ^ ) Basin oil & gas field in Shaanxi ( R# ) Province. Natural gas resources in Shaanganning ( —f &) Basin are 4.18 Gm3 accounting for 13.98% of land natural gas resources in China. In 1997, natural gas output in Shaanganning (— "B'ffr-12!) Basin oil & gas field is 170 Mm3. Workable natural gas reserves are over 50.0 Gm3 but there is lower output in Erduos Basin. The project for natural gas transportation from Shaanxi (K@) to Beijing (dbS) Changqing (-K50 natural gas field has proven reserves of 230 Gm3 of natural gas. After the first period project, the field had 1.5 Gm3 of capacity. The transportation pipeline begins from Jingbian (#i6) of Shaanxi ( RH) to Beijing (jbijO with 860 km in length, which is the first long distance, big diameter and fully automatic gas transportation pipeline. This pipeline, costing 3.94 Gyuan, was completed in September 1997 with initial capacity of 2 Gm3 and largest pressurized capacity of 3 Gm3. The pipeline will be continued to Tianjin with another 130 km in length. The project for natural gas transportation from Xianyan (PB) to Baoji () located in Shaanxi (R@) The gas transportation pipeline begins in the east direction from Jingxi (&$#) of Xianyan (JsJcPB) to Wolongsi (EI^tF) of Baoji and in the west direction via Xianyan (PB ) city, Xingping ( ) city, Wugong ( STb ) county, Tangling ($U#) district, Fufeng (RM) county, Meixian (/IS) county, Qishan (KlLj) county, Baoji county. It is 145.1 km in length. The pipeline was completed and put in use in October with 4.0 MPa of design pressure, 0426mm in diameter, made of X52 material, 5 transportation stations, 2 valve chambers and one gas transportation open for prepare use. - 178 - 3.2.4 3 Power Station In Shaanxi(ft@) Province, there are 7 super-size and big size power stations. They are the Baqiao thermal power station with 49 Mw of installed capacity, Huxian thermal power station with 150 Mw of installed capacity, Baoji Power station with 100 Mw of installed capacity, Hancheng power station with 1303 Mw of installed capacity, Qinling power station with 1050 Mw of installed capacity and Lueyan power station with 200 Mw of installed capacity. There are 26 small size power stations in Shaanxi ) Province, 5 Of which are located in Shenmu (#7^:) county. In Shaanxi (K@) Province, there are two big size hydropower stations. They are the Ankang () Hydropower Station and Shiquan (TfzK) Hydropower Station with 800 Mw and 135 Mw of installed capacity. There are more than 320 small scale hydropower stations mainly distributed in Ankang ( $0 ) district and Hanzhong district. In 1998, 22 Gkwh of power were generated by power stations controlled or shared by Shaanxi (RjSi) Province Power Company. Coal consumption for power generation is 391 g/kwh and power transportation loss in wire is 8.77%. In 1998, total power consumption in Shaanxi ($E@) was 25.564 billion kwh, a decreased 2.12% compared with that in 1997. This is the first decrease in history for power consumption. Thermal power generation will remain constant over a long period and some small size thermal power stations will be shut down gradually. 3.2.5 Lijiaxia Hydropower Station The Lijiaxia hydropower station, with 2000 Mw of installed capacity, in Qinghai (W'/5) Province was put in use in Feb. 1997 and provides 460 Mkwh of power to Shaanxi (RjSl) Province. 3.3 Status and Future Development of Town Gas in Shaanxi 3.3.1 Brief Introduction of Fuel Gas Development in Shaanxi Province In Shaanxi (KM) Province, the popularization rate of fuel gas in cities is 54.8%; in Xian (H$) it is 58.2%, in Xianyan 0^0) it is 81.9%, in Yanan (55$) it is 94.6% and in Hancheng (##) it is only 12.6%. Total coal-making gas consumption is.77.45 Mm3 in which 50.52 Mm3 are consumed by a civilian population of 408,200. Total LPG consumption in Shaanxi (RM) in 1997 was 53,406 tons of which 52,245 were consumed by a civilian populaiton of 1.85 million. Total natural gas consumption in Shaanxi (R@) in 1997 was 740,000 m3 consumed by 163,700 people. Table 3-11 shows detail related to civil fuel gas popularization. — 179 — Table 3-11 Use and Popularization of Coal Making Gas and LPG in the Cities popularize Coal making gas LPG tion rate Total Gas use Total Gas use % consum. Civil Population consum. Civil Population (104 m3) consum. 104 t consum. 104 Total 54.8 7745 5052 40.82 53406 52245 184.92 Xian (@^) 58.2 5227 4012 26.52 27493 27493 91.98 Tongchuan (HUH) 33.0 804 804 8.54 Baoji (SXS) 42.4 970 740 11.40 2400 2400 6.75 Xianyan ) 81.9 10736 9776 29.80 Xingping (^4?) 62.0 1548 310 2.90 685 650 3.75 Weinan (# 1#) 56.8 1809 1749 11.70 Hancheng (##) 12.6 647 612 1.20 Huayin 73.7 340 334 2.72 Hanzhong 41.5 585 520 8.80 Ankang ( 49.3 Shangzhou (Wi'I'l) 59.0 767 767 3.28 Van an (5$^) 94.6 3200 3200 9.80 Yulin (##) 3940 3940 6.60 3.3.2 Status and Future of Town Gas Requirements With Different Uses At present, town gas including coal making gas and natural gas is mainly consumed by civil use in the big and middle size cities in Shaanxi and Beijing. Tourism is one of the important industries in Shaanxi Province, and for tourism development, environmental protection is especially important. For this reason and with a long-term view, town gas will develop greatly in Shaanxi Province. 3.3.3 Composition of Town Gas Resources A few cities such as Xian, Baoji and Xingping consume town gas basically produced from coke-oven. 3.3.4 Town gas facilities Town gas in Xian (W$) is produced from coke ovens in Xian (S$) Coking Plant. There more than 20 gas producers of 03m mainly for industry use. In some coal mine districts, some two stage water gas gasifiers of 01.6m are used for house use. 3.3.5 Town Gas Transportation Pipelines and Related Specifications The project for natural gas transportation from Shaanxi to Beijing Changqing () natural gas field has proven reserves of 230 Gm3 of natural gas. - 180 - After the first period of the project, the field had 1.5 Gm3 of capacity. The transportation pipeline begins from Jingbian (%#]&) of Shaanxi (RM) to Beijing (dbS) with 860 km of length. This is the first long distance, big diameter and fully automatic gas transportation pipeline. This pipeline, costing 3.94 Gyuan, was completed in September 1997 with initial capacity of 2.0 Gm3 and maximum pressurized capacity of 3.0 Gm3. The pipeline will be continued to Tianjin (7o$) with another 130 km in length. The project for natural gas transportation from Xianyan (PH ) to Baoji (aEX%) The gas transportation pipeline begins in the east direction from Jingxi ) of Xianyan () to Wolongsi of Baoji and in the west direction with 145.1 km in length. The pipeline was completed and put in use in October with 4.0 MPa of design pressure, 0426mm in diameter, made of X52 material, 5 transportation stations, 2 valve chambers and one gas transportation open for prepare use. 3.3.6 Town Gas Facility Plan Due to big output of natural gas in Shaanxi (R|Sj) , there are almost no plans for town gas facilities. — 181 — R m # - 182 - *T til -nvKi-ia tui pnia n xa . t»* . * n i»-vi | ns.. mm . «*m . b ,x. i-oi.sin . »u. *•# IOU’iJ A T« - 7i« . .11 P . O.J. . xn usiui ate. rn.#».no.ax. mix .j»oi If His IB . tin/1 . «j. . r, toKr itMJ'.tlvs r..* ». W r.n.«"».AO. ? ;t. mi. . nnjun .<»« •7-. -tib f. «x (inMl ».i * . »■;; . mr. .su .mi*. I6R in ID 'if. ax . #1 u (t. /* miitt.v.'eri.r .it hit . tfcfMr. umia. m«. a.i l>«*iituv.H 7».it. *.i t.» w. *i *. s m. a mc.i* x .ii s ts.tr m x , *ti . a t. i «»ii ».r i* . a »- istr .«x.ms .iip.ifcwit. tm # # # E 183 4. Xinjiang 4.1 Reasons for Selecting Xinjiang The Xinjiang (Sfil) Uigur Autonomous Region (simplified as “Xinjiang ”) is located in northwest China with anarea of 1.66 Mkm2, wfyich accounts for 1/6 of all area in China. Xinjiang (Sill) is between the continent of Europe and the continent of Asia. At the end of 1998, the population in Xinjiang (Sfil) was 17.47 million. In 1998, theGBP of Xinjiang ($iil) reached 111.67 Gyuan, which is 6.5 times that in 1978 with an annual rate of increase of 10.6%. In 1998, total cotton production in Xinjiang (ifril) was 1.4 Mt. Total output, per unit area yield and trade quantity of cotton in Xinjiang (SrIS) was first in China. In 1998, cotton yam output was 220,000 tons, cloth output was 270 million meters and sugar output was 476,000 tons in Xinjiang (Sfil) . In 1998, crude oil output was 16.28 Mt of which 9.29 Mt are processed in Xinjiang (Sfil) . The installed capacity of power was more than 370 Mw with 15.78 Gkwh of annual power generation. Coal output was 29.27 Mt, steel output was 1.16 Mt and cement output was 7.29 Mt. Urumchi () is the capital city of the Xinjiang ( Sill) Uigur Autonomous Region. It is also the political, economic and cultural center of Xinjiang (Sfil) with about 1.6 million people. In 1997, the GBP of Urumchi () , including counties which are under Urumchi () was 21.69 Gyuan, with an annual increase rate of 10-11%. Of this agricultural output value was 0.73 Gyuan and industrial output value 20.51 Gyuan. The GBP of Urumchi () accounts for 20.66% of all that of Xinjiang (SrlS) . In 1998, electricity power consumption in Urumchi was 3.42 Gkwh of which 2.234 Gkwh was consumed by industrial use and 0.54 Gkwh was consumed by fcivil use. In 1998, 7.73 Gyuan of investment into fixed assets was completed. In 1998, contribution to increased GBP value from primary industry was 370 Myuan, accounting for 1.71% of the total; from secondary industry, 8.31 Gyuan accounting for 38.32%; and from tertiary industry, 13.01 Gyuan, accounting for 59.98%. There are abundant mineral resources that are widely distributed and good combinations in Xinjiang (9ril) . Up to now, 14 categories including 138 kinds of - 184 - minerals have been discovered in Xinjiang (#11) of which reserves of 38 kinds of mineral matters have been proven. Xinjiang (#11) is akey region to be developed in the 21st century and main base for future energy supply. It is estimated that economic growth for Xinjiang (Sri!) during the next ten years will be 8-10%. (1) Coal Among proven coal resources in Xinjiang (#11) , low rank bituminous coals account for 24.5% of the national total to rank third after Shaanxi ( R# ) Province and Inner Mongolia ( FAIR'S) . The coal resources from gas coal to lean coal in Xinjiang (# 11) rank seventh place in China. There are 11 Gt of proven coal reserves in Xinjiang (#11) with 870 tons per capita. In Xinjiang (#11) there are not only great quantity of coal but also various kinds of them. Most coals in Xinjiang (#11) are steam coals and some of them are coking coals. (2) Petroleum and natural gas According to resource evaluation results for Chinese petroleum and natural gas resources in 1994, in China there are 93 Gt of petroleum resources and 38.00 Tm3 of natural gas resource. The proven petroleum reserves and natural gas reserves are only 20% and 3% of total reserves respectively. In China there are unbalanced distributions of petroleum and natural gas resources region to region and great differences in proven degree. The 1990 ’s were an important period for Chinese petroleum industry development. In the petroleum industry, the polices of “stabilization of east China and development of west China ” and “active exploration and development of marine and offshore petroleum resources ” were implemented. In east China, crude oil production remains at stable levels. In west China, mainly in the Talimu (i§J|7fO Basin, the Tulufan-Hami (Of## — Po^) Basin and Zhunger () Basin in Xinjiang (#11) , where there are abundant petroleum and natural gas resources, there is a very low degree of exploration. Since the Eighth-Five-Year Plan, there has been a great degree of exploration in west China. This location is gradually becoming a substitute region for the strategic reserves. Since the Eighth-Five-Year Plan, a great breakthrough in land natural gas exploration has been made in the north part of Shaanxi () Province and east part of Sichuan (E9Jl|) Province. In the exploration and development of marine and offshore petroleum resources, the combination of cooperative development - 185 - with outside ventures and state-owned development has been implemented to form an open situation in the development of east sea petroleum and gas resources. In the western part of.Chinese south sea area, a production region of natural gas has been created. For Xinjiang ($rll) , following breakthrough results in exploration of petroleum and natural gas resources have been made: # Breakthrough progress for petroleum and natural gas exploration in Zhunger (# SzF) Basin In the Eighth-Five-Years Plan period, when the exploration became focused in the broken area of northwest edge of the Basin, there was a remarkable increase of 298.9 Mt of proven petroleum geological reserves. • Breakthrough progress for petroleum and natural gas exploration in Talimu (±|rjP. 7^) Basin During 5 years of exploration, 229.25 Mt of petroleum geological reserves and 106.68 Gm3 of natural gas geological reserves were proven. Also, 45.12 Mt of controlled petroleum reserves and 37.69 Gm3 of controlled natural gas reserves were proven. • New exploration results in Tulufan-Hami Ott## — Pp^f) Basin In the Eighth-Five-Year Plan period, 11 oil-gas fields in Qiuling (jx|§) , Wenjisang , Mideng (##) , Baka , Shanle (##) , Pubei (#%) , Tulufan (D±##) , Shenquan (#S) , Hongnan ) , Qialekan and Qiudong (Jx %) were discovered and explored. In these 5 years, a total of 167.54 Mt of petroleum geological reserves were proven. This gives the Tulufan-Hami (P±H-|| — Pp^?) Basin an accumulated total of 191.59Mt of proven petroleum reserves and 24.36 Gm3 of geological proven natural gas reserves. • Breakthrough progress for exploration in the Yanqi (##) Basin Since the exploration started in the Yanqi (##) Basin, the two oil-gas structural belts of Baolangsumu ( 5 Vll ) and Benbutu ( ^ HI ) were discovered. Industrial oil-gas streams were discovered in Yanshen (##) 1# well, Bao 1# well and Yanshen (##) 2# well which are on the two structural belts. It is estimated that there are 328 Mt of petroleum resources in the Yanqi (##) Basin. (3) Construction of natural gas transportation pipeline from Urumchi to Shanghai — 186 — At the present time, the project for a natural gas transportation pipeline from Urumchi (to Shanghai (_hS) is being promoted by related departments of the central government. Construction of the pipeline will greatly speed up the development of oil-gas resources in Xinjiang ( Sr 11) . In conclusion, (1) There are abundant fossil energy resources. Both proven reserves of coal, petroleum and natural gas and per capita resources in the Urumchi ) region of Xinjiang (Sri! ) are the greatest in China. (2) Urumchi (A ) region of Xinjiang (Sflfi) will be one of the main energy bases and substitute regions for energy supply and a key region for energy development in the 21st century. (3) There are various energy structures in the Urumchi ( A ) region of Xinjiang (Sril) . In the future, energy production and consumption will shift from coal and oil as dominant energy sources to oil and natural gas as dominant energy sources. (4) Coal types and coal qualities in the Urumchi () region of Xinjiang (Sf il) are suitable for substitute natural gas production from coal. (5) The proposed project for construction of a transportation pipeline for natural gas from Urumchi ) to Shanghai (_hS) will promote and speed up the development of the energy industry in Xinjiang ( ) . The shift from transportation of coal to transportation of natural gas will provide a good opportunity for development and application of substitute natural gas production from coal in Xinjiang (§f?i!) . Local government is greatly interested in it and is showing a very positive attitude. Based on the five points mentioned above, it is considered that the Urumchi region of Xinjiang (SriS) is a suitable candidate region for development of coal hydrogasification technology. 4.2 Status and Future of Energy Demand and Supply in Xinjiang 4.2.1 Status and Future of Industry Structure in Xinjiang Since establishment of the Xinjiang (SriS) Uigur Autonomous Region, especially since implementation the policies of reform and opening, Xinjiang ’s economy has developed rapidly and industry structure is becoming more and more reasonable. The status and industry structure in Xinjiang are shown in Table 4-1, Table 4-2, Table 4-3 - 187 - and Table 4-4. It can be seen from the tables that since implementation the policies of reform and opening, GDP has increased at an average rate of 10% and the proportion of tertiary industry is gradually increasing while the proportion of primary industry and secondary industry are gradually decreasing. It is estimated that during the next 50 years, Xinjiang ’s economy will grow at a rate of 8%. The main agricultural products are grains, oil crops, sugar beet and cotton, and the main industrial products are coal, petroleum, natural gas, power and cement. Of these cotton coal, petroleum, natural gas, power and cement are the supporting products for Xinjiang ’s economy. - 188 - Table 4-1 GDP Values and Growth in Xinjiang GDP Year GDP Primary Secondary industry Tertiary industry Per industry Gyuan Industry Architectu Trans, and Comme Capita ral communi. rce (yuan) industry industries absolute values (original price) 1978 3.9 1.4 1.8 1.4 0.4 0.7 0.1 0.2 313 1979 4.6 1.6 2.1 1.7 0.4 0.8 0.2 0.2 359 1980 5.3 2.2 2.1 1.7 0.4 1.0 0.2 0.3 410 1981 5.9 2.5 2.2 1.8 0.4 1.2 0.2 0.3 450 1982 6.5 2.8 2.3 1.8 0.5 1.4 0.3 0.4 488 1983 7.9 3.3 2.9 2.3 0.6 1.7 0.3 0.5 583 1984 9.0 3.7 3.2 2.6 0.6 2.1 0.4 0.6 661 1985 11.2 4.3 4.0 3.2 0.8 2.9 0.5 0.9 820 1986 12.9 4.6 4.6 3.7 0.9 3.7 0.6 1.0 924 1987 14.9 5.6 5.1 4.1 1.0 4.2 0.8 1.2 1053 1988 19.3 7.2 6.6 5.4 1.2 5.5 1.2 1.6 1347 1989 21.7 7.8 7.4 6.0 1.4 6.5 1.3 1.8 1493 1990 27.4 9.5 8.4 6.8 1.6 9.5 2.0 2.8 1799 1991 33.6 11.2 10.8 8.4 2.4 11.6 2.3 3.7 2101 1992 40.2 11.5 14.7 10.6 4.1 14.0 2.8 4.0 2477 1993 50.6 12.9 21.7 15.6 6.1 16.1 3.2 4.4 3019 1994 67.4 18.8 26.5 19.0 7.5 22.1 4.2 5.9 3953 1995 82.5 24.1 30.3 21.9 8.4 28.2 5.5 7.6 4764 1996 91.2 24.9 33.7 23.9 9.8 32.6 6.7 9.0 5167 1997 105.0 28.0 41.3 30.3 11.0 35.7 7.6 9.8 5904 *1998 Increase rate (at comparable price, based on one year ago, %) 1978 1979 12.3 9.9 11.6 11.3 12.6 20.7 21.9 17.2 1980 7.2 6.0 4.4 8.4 -6.9 16.6 15.8 25.5 1981 8.5 15.3 -0.6 -0.9 0.2 13.4 19.4 17.9 1982 9.8 11.3 4.2 4.7 2.8 17.1 19.1 19.8 1983 13.4 12.2 11.8 12.4 10.0 18.7 13.0 8.8 1984 14.0 13.6 14.6 15.1 12.8 14.1 0.2 9.2 1985 16.9 12.9 16.7 16.1 19.0 25.0 0.2 26.6 1986 11.5 8.3 9.1 11.0 2.6 20.7 24.9 10.1 1987 9.7 10.7 4.8 8.6 -8.8 14.7 19.1 11.1 1988 9.6 3.3 14.9 13.6 20.3 12.9 18.8 14.7 1989 5.9 1.8 4.5 6.9 -5.5 13.5 12.7 7.6 1990 11.7 16.0 6.8 6.4 8.5 12.0 6.7 4.4 1991 14.4 11.2 17.0 13.1 34.9 15.7 29.0 4.7 1992 13.1 5.5 19.4 12.6 45.5 15.7 25.7 12.6 1993 10.3 1.1 14.0 11.3 22.1 16.7 15.4 22.4 1994 10.9 11.2 10.2 11.1 7.9 11.2 11.5 6.5 1995 9.0 4.9 11.7 13.6 6.6 10.0 16.6 9.9 1996 6.4 3.5 8.2 7.2 11.1 7.1 10.2 10.6 1997 11.0 10.8 13.2 13.0 13.7 8.7 16.7 6.7 Source: 98 Statistical Yearbook of Xinjiang - 189 - Table 4-2 GDP Composition in Xinjiang (%) Year GDP Primary Secondary industry Tertiary industry industry (%) Industry Architectural Transp. and Commerce industry communi. industries 1978 100 35.9 46.1 35.87 10.24 17.9 3.13 5.50 1980 100 40.4 40.3 32.84 7.46 18.5 3.57 3.44 1985 100 38.2 36.1 28.66 7.44 25.7 4.09 7.99 1990 100 34.5 30.5 24.86 5.64 35.0 7.21 10.12 1991 100 33.3 32.1 25.01 7.09 34.6 6.75 11.00 1992 100 28.5 36.7 26.42 10.28 34.8 7.03 9.88 1993 100 25.1 43.0 30.87 12.13 31.9 6.28 8.68 1994 100 27.9 39.4 28.29 11.11 32.7 6.25 8.70 1995 100 29.2 36.7 26.57 10.13 34.1 6.68 9.17 1996 100 27.3 36.9 26.16 10.74 35.8 7.37 9.88 1997 100 26.6 39.4 28.92 10.48 34.0 7.21 9.38 Source: 98 Statistical Yearbook of Xinjiang Table 4-3 Industry Structure and Main Economic Indexes Item 1978 1980 1990 1995 1996 1997 1. GDP Gyuan 3.9 5.3 27.4 82.5 91.22 105.00 2. Main agri. products Grain 104t 370.05 1386.14 676.90 727.81 818.20 825.34 Oil crops 104t 10.33 17.59 38.96 49.41 30.95 29.95 Sugar beet 104t 16.37 38.52 224.37 288.14 354.52 388.71 Cotton 104t 5.5 7.92 46.88 93.50 94.04 115.00 3. industrial products Coal 104t 1077.10 1136.49 2098 2717.03 2986.00 3021.37 Power Gkwh 6.94 12.05 13.60 15.06 Crude oil 104t 349.9 494.6 712.43 1289.35 1457.10 1629.25 Cement 104t 251.25 562.87 627.51 Natural gas GM' 0.25 0.35 0.50 1.14 1.38 1.93 Source: 98 Statistical Yearbook of Xinjiang - 190 - Table 4-4 Predicted GDP for Xinjiang # year GDP increase rate GDP value (%> (Gyuan) 1995 10 82.5 1996-2000 8 132.8 2001-2010 8 210.7 2011-2020 8 334.3 2021-2030 8 530.5 2031-2040 8 841.8 2041-2050 8 1335.8 Source: Xinjiang Planing Commission 4.2.2 Energy Production and Consumption By Sector Energy production and requirements in Xinjiang (§fH) are listed in Table 4-5 to Table 4-17. It can be seen from these tables that main energy production is from coal and petroleum with a small quantity of natural gas and hydropower meanwhile energy consumption dominated by coal in Xinjiang (Sri!) . Energy production in Xinjiang (Sri!) is more than sufficient and some surplus energy such as coal and crude oil is sold out of Xinjiang (Sfil) . Energy consumption by industrial sector accounts for 58-60%. In 1998, energy consumption distribution in Xinjiang (Srli) is as follows: agriculture accounts for 8.6%, industry for 55.3%, architectural industry for 2.6%, transportation and communication for 5.1% and civil use for 18.8%. - 191 - Table 4-5 Production and Consumption of Primary Energy in Xinjiang (Mtce) Production amount Year Total amount Coal Oil Natural gas Hydro-power 1978 14.04 8.46 5.04 0.34 0.17 1980 15.19 8.93 5.57 0.47 0.21 1985 20.77 12.56 7.12 0.73 0.35 1990 27.71 16.48 9.97 0.66 0.58 1995 42.39 21.36 18.57 1.53 0.93 1996 47.30 23.46 21.00 1.84 0.99 1997 50.94 23.69 23.28 2.85 1.12 Consumption amount Year Total amount Coal Oil Natural gas Hydro-power 1978 10.34 7.09 2.72 0.33 0.19 1980 11.26 7.80 2.77 0.47 0.21 1985 14.80 10.89 2.83 0.73 o.36 1990 19.76 14.19 4.35 0.67 0.57 1995 27.99 19.03 6.49 1.54 0.92 1996 30.20 19.81 7.55 1.84 1.00 1997 31.94 20.47 7.79 2.59 1.12 Source: 98 Statistical Yearbook of Xinjiang - 192 - Table 4-6 Primary Energy Composition in Xinjiang Production Amount Year Total Coal Oil Natural gas Hydro-power 1978 100 60.3 35.9 2.4 1.3 1980 100 58.8 36.7 3.1 1.4 1985 100 60.5 34.3 3.5 1.7 1990 100 59.5 36.0 2.4 2.1 1995 100 50.4 43.8 3.6 2.2 1996 100 49.6 44.4 3.9 2.1 1997 100 46.5 45.7 5.6 2.2 1998 100 45.4 46 6.2 2.4 Consumption Amount Year Total Coal Oil Natural gas Hydro-power 1978 100 68.6 26.3 3.2 1.8 1980 100 69.3 24.6 4.2 1.9 1985 100 73.6 19.1 4.9 2.4 1990 100 71.7 22.0 3.4 2.9 1995 100 68.0 23.2 5.5 3.3 1996 100 65.6 25.0 6.1 3.3 1997 100 64.1 24.4 8.1 3.5 1998 100 62.8 25.2 8.3 3.7 Source: 98 Statistical Yearbook of Xinjiang Table 4-7 Consumption Elasticity Ratio for Primary Energy in Xinjiang Year Increase rate of energy Increase rate of GDP (%) Consumption elastic consumption (%) ratio of energy 1990 8.3 11.7 0.71 1991 7.3 14.4 0.51 1992 9.5 13.1 0.73 1993 10.0 10.3 0.97 1994 5.4 10.9 0.50 1995 3.9 9.0 0.43 1996 7.9 6.4 1.23 1997 5.8 11.0 0.53 Source: 98 Statistical Yearbook of Xinjiang - 193 - Table 4-8 Energy Consumption and Composition by Sector 1996 1997 Sector Cons. Comp. Cons. Comp. (104 tee) (%) (IQ4 tee) <%) Total Consumption 3018.50 100.00 3193.95 100.00 Agriculture 220.90 7.32 230.76 7.22 Industry 1758.81 58.27 1895.32 59.34 Light industry 406.33 13.46 265.03 8.30 Heavy industry 1352.48 44.81 1630.28 51.04 Architecture 57.00 1.89 47.33 1.48 Tran, and Communication 167.90 5.56 167.89 5.26 Commerce 68.30 2.26 71.48 2.24 Others 240.18 7.96 210.88 6.60 Civil use 505.41 16.74 570.29 17.86 Source: 98 Statistical Yearbook of Xinjiang Table 4-9 Coal Consumption and Composition by Sector 1996 1997 Sector Cons. Comp. Cons. Comp. (104t) (%) (104t) (%) Total Consumption 2568.58 100.00 2616.07 100.00 Agriculture 97.91 3.81 101.82 3.89 Industry 1610.55 62.70 1670.47 63.85 Light industry 380.53 14.81 227.00 8.68 Heavy industry 1230.02 47.89 1443.47 55.18 Architecture 28.31 1.10 25.35 0.97 Tran, and Communication 46.48 1.81 49.43 1.89 Commerce 40.00 1.56 40.00 1.53 Others 208.00 8.10 160.00 6.12 Civil use 537.33 20.92 569.00 21.75 Source: 98 Statistical Yearbook of Xinjiang - 194 - Table 4-10 Coke Consumption and Composition by Sector 1996 1997 Sector Cons. Comp. Cons. Comp. (10't) (%) (10't) (%) Total Consumption 80.06 100.00 74.55 100.00 Agriculture 0.77 0.96 0.43 0.58 Industry 78.57 98.14 73.59 98.71 Light industry 3.93 4.91 3.37 4.52 Heavy industry 74.64 93.23 70.22 94.19 Architecture 0.27 0.34 0.22 0.30 Tran, and Communication 0.45 0.56 0.31 0.42 Source: 98 Statistical Yearbook of Xinjiang Table 4-11 Crude Oil Consumption and Composition by Sector 1996 1997 Sector Cons. Comp. Cons. Comp. (10't) (%) (10't) (%) Total Consumption 836.75 100.00 943.72 100.00 Agriculture 0.01 Industry 836.71 99.99 943.68 100.00 Light industry 8.37 1.00 Heavy industry 828.34 98.99 943.68 100.00 Tran, and Communication 0.04 0.01 0.03 Source: 98 Statistical Yearbook of Xinjiang Table 4-12 Heavy Oil Consumption and Composition by Sector 1996 1997 Sector Cons. Comp. Cons. Comp. (104t) (%) (10't) (%) Total Consumption 121.12 100.00 108.94 100.00 Industry 121.12 100.00 108.93 99.99 Light industry 1.21 1.0 0.44 0.40 Heavy industry 119.91 99.00 108.49 99.59 Architecture 0.01 0.01 Source: 98 Statistical Yearbook of Xinjiang - 195- Table 4-13 Gasoline Consumption and Composition by Sector 1996 1997 Sector Cons. Comp. Cons. Comp. (104t) (%) (104t) (%) Total Consumption 104.3 100.00 97.37 100.00 Agriculture 6.96 6.67 5.98 6.14 Industry 18.67 17.95 17.53 18.00 Light industry 4.11 3.95 3.34 3.43 Heavy industry 14.56 13.99 14.19 14.57 Architecture 13.25 12.74 8.45 8.68 Tran, and Communication 28.16 27.07 28.41 29.18 Commerce 8.00 7.69 8.00 8.22 Others 22.26 21.15 22.00 22.59 Civil use 7.00 6.73 7.00 7.19 Source: 98 Statistical Yearbook of Xinjiang Table 4-14 Diesel Oil Consumption and Composition by Sector 1996 1997 Sector Cons. Comp. Cons. Comp. (104t) (%) (104t) (%) Total Consumption 127.17 100.00 125.06 100.00 Agriculture 42.05 33.07 42.30 33.82 Industry 33.13 26.05 33.77 27.05 Light industry 1.33 1.05 0.74 0.59 Heavy industry 31.80 25.00 33.03 26.41 Architecture 4.05 3.18 3.81 3.05 Tran, and Communication 34.94 27.48 32.78 26.21 Commerce 6.00 4.72 6.00 4.80 Others 7.00 5.50 6.40 5.12 Source: 98 Statistical Yearbook of Xinjiang - 196 - Table 4-15 Kerosene Consumption and Composition by Sector 1996 1997 Sector Cons. Comp. Cons. Comp. (10" t) (%) (10" t) (%) Total Consumption 18.68 100.00 18.39 100.00 Agriculture 0.07 0.37 0.05 0.27 Industry 0.16 0.86 0.13 0.71 Light industry 0.01 0.11 0.01 0.05 Heavy industry 0.15 0.75 0.12 0.65 Architecture 0.04 0.16 0.02 0.11 Tran, and Communication 17.76 95.07 17.59 95.65 Commerce 0.10 0.54 0.10 0.54 Civil use 0.56 3.00 0.50 2.72 Source: 98 Statistical Yearbook of Xinjiang Table 4-16 Power Consumption and Composition by Sector 1996 1997 Sector Cons. Comp. Cons. Comp. (Gkwh) (%> (Gkwh) (%) Total Consumption 13.60 100.00 15.06 100.00 Agriculture 1.77 13.02 1.97 13.09 Industry 9.04 66.42 10.03 66.61 Light industry 1.81 13.28 2.07 13.74 Heavy industry 7.22 53.14 7.96 52.87 Architecture 0.21 1.54 0.21 1.39 Tran, and Communication 0.28 2.08 0.31 2.07 Commerce 0.23 1.71 0.31 2.07 Others 0.84 6.15 0.82 5.43 Civil use 1.24 9.08 1.41 9.34 Source: 98 Statistical Yearbook of Xinjiang - 197 - Table 4-17 Daily Consumption of Various Energies in Xinjiang Year Total Coal Coke Crude Heavy Gaso- Kero- Diesel Natural Power Oil Oil line sene gas (104tce) (104t) (104t) (io 4t) (10Jt) (104t) (104t) (104t) (104m3) (Mkwh) 1990 5.41 5.04 0.16 1.33 0.25 0.20 0.01 0.24 137.53 19 1991 5.81 5.23 0.16 1.45 0.29 0.22 0.02 0.26 151.78 21 1992 6.36 5.50 0.18 1.63 0.30 0.26 0.03 0.28 184.93 24 1993 7.00 5.85 0.19 1.88 0.31 0.31 0.04 0.29 248.22 26 1994 7.38 6.33 0.19 1.90 0.34 0.29 0.04 0.32 248.22 29 1995 7.67 6.67 0.20 1.99 0.32 0.28 0.04 0.33 314.52 33 1996 8.27 7.53 0.22 2.29 0.33 0.29 0.05 0.35 376.99 37 1997 8.75 7.17 0.20 2.58 0.30 0.27 0.05 0.34 529.86 41 Source: 98 Statistical Yearbook of Xinjiang 4.2.3 Energy Production and Consumption with Use Purposes It can be seen from Table 4-5 that the main energy produced in Xinjiang (Sim) is coal, crude oil and natural gas. In primary energy consumption, power generation consumed 6.4 Mt of coal to account for 24.45% of coal consumption, and industry, the largest energy consuming body, consumed 16.70 Mt of coal to account for 63.83% of coal consumption, 9.44 Mt of crude oil and almost all the natural gas and heavy oil. Civil use consumed 5.69 Mt of coal to account for 9.5% of coal consumption and 10% of power consumption. Transportation consumed 2.49 Mt of coal to account for 9.5% of coal consumption, 584,000 tons of gasoline to account for 59.99% of gasoline consumption, 451,800 tons of diesel fuel to account for 36% of diesel consumption and power to account for about 10% of power consumption. 4.2.4 Status and Future Plan for Energy Utility Facilities in Xinjiang (l)Energy policy The polices for the energy industry in Xinjiang (SrID are “multiple energies to complement each other, ” “pay equal attention to energy development and energy saving ” and “take coal as the base, take power as the center, take the petroleum and petrol chemical industry as the breakthrough point and actively develop new energies ”. In Xinjiang (SrlS) , the coal industry will be developed steadily, the power industry will be developed greatly, and the petroleum industry will be developed rapidly. The development of wind-power, natural gas and solar energy will be in line with local conditions. The combined production of thermal-power and concentrated area heat supply with cities as central points will also be developed. Recently, focus is directed to - 198 - structural adjustment of the energy industry and enterprise optimization and recombination. Some key energy projects, which have big influence on economic and other sector development and good economic benefits, will be established and put into practice to promote reasonable distribution and optimization of the energy industry. (2) Energy management system Comprehensive administration for Xinjiang ’s energy is by the Xinjiang Planing Commission and Xingjiang Economy and Trade Commission. Administration for Xinjiang's coal is by the Xinjiang Coal Administration Bureau. Administration for Xinjiang's power is Xinjiang ( Sf11 ) Power Administration Bureau. Because petroleum enterprises in Xinjiang ( Sril) are all controlled by the central government, there is no special administration department for the petroleum industry in Xinjiang (3) Energy industry status Coal industry There are abundant coal resources and unbalanced distribution of it in Xinjiang. The coal resource development must be conducted under unified planning and reasonable distribution to bring the respective strong points of key state-owned coal mines, local state-owned and collective ownership coal mines into play for solving the relative coal shortage of south Xinjiang (Sril) . In 1998, Xinjiang (Sril) had 29.26 Mt of coal output. In Xinjiang (Sril) , the 3 coal bases are Urumchi (A#^K^r) power coal base, Kami (Pp^) coal base for transportation out of Xinjiang (Sril) , and Aiwergou ( ) coking base. There have a coal production capacity of 6.43 million tons a year to account for 22.3 % of total coal output in Xinjiang (Sril) • There are 24 cities/counties that have more than 300,000 tons of coal output of which 7 counties such as Urumchi (A#-^Kfr) , Miquan OfcS) , Baicheng (^##) and Bukesaier (^) have more than a million tons of coal output a year, respectively. In 1998, collectively owned coal mines produced 22.83 Mt of coal to account for more than 75% of coal output in Xinjiang. Power Industry The principles for power development are “unified planning, optimal distribution, measures suited to local conditions, carrying on multi-energy at the same time, structure adjustment and benefit increase. ” The policies are “steadily develop thermal power, actively develop hydro-power, rapidly develop natural-gas-fueled power, - 199 - moderately develop wind power and greatly develop power net construction High parameter, high efficiency and big capacity generating sets are the direction of development for thermal power stations. The emphasis on the development of hydropower is to put these on rivers with big flow rate. Also this requires the ability to regulate the water flow by measures such as the development of different water level reservoirs. Unified planning, rapid progress of the connecting net and combining new power net construction with old power net reform are being done for power net construction. In 1998, 15.78 Gkwh of electric energy were generated and 3957.3 Mw of installed capacity were achieved in Xinjiang. For total installed capacity, there are 788.5 Mw from hydro-power to account for 1.71%, 3101.1 Mw from thermal power to account for 78.3% (for which 6.4 Mt of coal was consumed), natural-gas-fuelled power stations contributed 90 Mw to account for 2.27% of thermal power capacity a year, and 67.7 Mw from wind power generation to account for 1.71%. In Xinjiang ( St IS ) , there is 21,555 km of electric wires with over 35 kV. A 220 kV electric net, Urumchi electric net, eight 110-kV electric nets and more than twenty 35-kV electric nets have been formed. There are 1515 km of 220-kV wires, 7680 km of 110 kV wires and 12,060 km of 35-kV wires. Petroleum and natural gas industry The policies for petroleum and natural gas industry development are “pay equal attention to petroleum and natural gas ” and “coordinate development of upstream and downstream industries ”. By unified planning, reasonable distribution and equal attention to exploration and development, the conditions for shifting the focus of petroleum strategy from east China to west China are being created. In 1998, 16.28 Mt of crude oil were produce in Xinjiang (IffIS) to account for 10% of the output in China and 2.7 billion cubic meters of natural gas including petroleum associated gas were produced in Xinjiang (iffIS) . By the end of 1998, the 3 crude oil bases of Kelamayi , Talimu (ilrilTfO and Turufan-Hami (tth## — Dp W ) were completed with 19 Mt capacity a year. Of this more than 6 Mt of crude oil were transported to east China. About 40% of the oil output from these 3 bases was transported out of Xinjiang (Sfil) . These 3 bases have become the main oil and gas production bases and strategic substitute regions. The three petrochemical production bases of Kelamayi (3^%^#) , Dushanzi (# - 200 - llif) and Urumchi (^) were completed with processing capacity of 14.15 Mt of crude oil and actual processing capacity of 9.31 Mt. At present, based on the oil fields and reasonable distribution, a certain scale petrochemical industry has developed in Xinjiang (Sill) . Wind power and solar energy In Xinjiang (Srifi) there is 67.7 Mw of installed capacity by wind power. 200 Mkwh have been attained. In Xinjiang (StIS) , 10600 sets of house use wind generators were equipped and 98500 sets of house use solar energy systems were equipped for remote herdsman houses. In addition, some 197 kw for microwave communication and light cable stations, 150 kw for concentrated use and house use electric resource systems of wind-light complement, 5 kw for light-electricity purse net for a big grassland area and 4 kw of light-electricity system for a primary school were equipped. 25000 m2 of solar energy heater, 21.31 M m2 of sun light energy-saving house and some greenhouses were popularized in Xinjiang ( Sr IE ) . Prediction of energy production and consumption in Xinjiang Xinjiang (Sr 11) is a relatively independent energy production region. Energy in Xinjiang (Srii) is self-sufficient and some of it is transported out of Xinjiang (Sr il) . According to energy requirements at the rate of economic development and the aim to build Xinjiang ( Sr il ) into a national petroleum and energy base, the prediction of energy production and consumption in Xinjiang (Srii) is shown in Table 4-18 It can be seen from Table 4-18 that energy consumption not including petroleum and natural gas, will increase at an annual 5% rate. In energy production and consumption, the coal proportion will gradually decrease while the petroleum and natural gas proportion will decrease. By 2015, the coal proportion in energy production and consumption will decrease to about 50%. Table 4-18 Prediction of Energy Production and Consumption in Xinjiang for the Next 15 Years Year Coal Oil Natural Power Installed (Mt) (Mt) gas (Gm3) generated capacity (Gkwh) (Mw) 2000 40 Mtce production 2005 39.60 25.00 10.0 29.0 6500 2005 54 Mtce Energy 2010 46.00 30.00 16.0 42.0 9300 consumption 2010 68 Mtce Energy 2015 58.70 35.00 23.0 62.0 13600 2015 80 Mtce Source: Xinjiang Planning Commission 4.2.5 Energy Supply Bodies Besides energy self-sufficiency, Xinjiang (Sril) will supply energy to the outside. Energy supply bodies include: Three coal mines of Urumchi (coal bureau, Hami (Pn'W) coal bureau and Aiweirgou ) coal bureau for coal supply; three petroleum bases of Kelamayi () , Talimu and Turufan-Hami Oft## — Pq W) for crude oil supply, and natural gas fields concentrated in Talimu () Basin. 4.3 Status and Future Development of Town Gas in Xinjiang 4.3.1 Status of Town Gas Development in Xinjiang Town gas used in all cities in Xinjiang (Sill) is from both natural gas and liquefied petroleum gas (LPG). Table 2-19 shows the status of town gas and Table 4-20 shows the forecasted requirements for LPG. Table 4-19 Brief Status of Town Gas Items 1996 1997 Total length of natural gas pipelines 103m 750 750 Natural gas supply amount Mm3 30 20 LPG supply amount 10" t 9.59 8.66 Total population 10" 593.11 604.73 Proportion of population using gas fuels % 82.3 88.4 Source: 98 Statistical Yearbook of Xinjiang Table 4-20 Prediction of LPG Requirements in Xinjiang (104t) Actual value Actual value in Predicted value Predicted in 1996 1997 for 2005 value for 2010 Output 23.09 21.61 25 30 Input 0 0 0 0 Total supply amount 23.09 21.61 . 25 30 Requirements by industry 9.59 8.66 12 15 and commerce uses Transportation to outside 13.5 12.95 13 15 Source: Xinjiang Planning Commission - 202 - 4.3.2 Status and Future of Town Gas Requirements With Different Uses in Xinjiang Most natural gas produced in Xinjiang ($fli) is used for industry such as power generation and chemical fertilizer manufacture. Very little is for civil use. In 1998, about 1000 m3 of natural gas was for civil use by about 40000 houses. According to the plan for Urumchi, in the 10th five-year plan, 250,000 houses will use natural gas to account for 65% of the population of Urumchi and the 35% of the population will still use LPG. 4.3.3 Raw Material Composition of Town Gas Resources Town gas resources are natural gas and LPG. There is no gas from coal gasification and no plant or facilities for gas from coal gasification in Urumchi district. 4.3.4 Town Gas Transportation Pipelines and Specifications In 1998, natural gas output in Xinjiang reached 2.7 Gm3. There are three transportation pipelines, one from Shanshan (##) to Urumchi (with 300 km of length and 600 Mm3 of capacity, another one from Tazhong ) to Lunnan (% S) to Kuerle (#/T#) with 500 km of length and 1.2 Gm3 of capacity, and another from Kelamayi to Cainan (##) . In 1990, a project for municipal pipeline and town gas pipeline started. From the total budget of 340 Myuan, 300 Myuan has been invested. The main part of the project has been completed with the ability to transport gas. - 203 - 5. Possibility and Problems of Coal Hydrogasification Technology Application 5.1 Possibility of Coal Hydrogasification Technology Application Becauce coal can be converted to clean energy and expensive raw materials of chemical engineering, it is very possible to apply this kind of technology in China. The main reasons is as following. (1) With the increase of environmental pressure and decrease of natural resources coming in the 21st century, people will pay more attention to clean energy and its sustainable utilization. A long preparation and transition period is needed to change the present energy structure thoroughly. That is to say, it will be an arduous task to completely replace fossil energy that accounts for 90% of the present primary energies. Development of other substitutes on a commericial scale can not be realized in a short time. For China, a developing country, this point is very obvious. Recently, some experts in the energy field have predicted status of energy in China in 2050 and the main conclusions are as follows: according to the development plan for the national economy and limiting the population to within 1.54 billion, GDP in 2050 will amount to 41.6 T yuan. This is 23.7 times as much as that in 1990 and matches the average level of a developed country when results are calaulated based on average purchasing power. The demand for primary energy will increase from the present 1.24 G tee to 3.57 Gtce in 2050, which is 2.88 times as much as that in 1990. The average energy consumption per capita will increase from 1.09 tee to 2.31 tee, which is 2.12 times as much as that in 1990. The total output of energy can meet the domestic demand, but there will be an obvious gap between demand and supply for oil gas. Coal hydrogasification technology can solve this problem. (2) Due to the limitation of enengy situation, primary energy mainly depends on coal in China and this will continue for a very long time. In the 21st century, the energy structure will change gradually with obvious change by the middle of next century. But the absolute consumption of coal will continue to increase rather than decrease. In order to protect the environment, the amount of coal used for direct combustion should be reduced and clean coal technologies must be adopted. It is necessary to develop and spread the technologies for converting coal into new energies. From this viewpoint, coal hydrogasification technology is one of the advanced technologies to convert coal into clean energy. (3) After investigation, half of present coal reseves are bituminous coal, subituminous coal and old lignite with high acitvity and low ranks that is suitable for hydrogasification technology. Researchers in China have been studying the pyrolysis of young coals (mild gasification) and have achieved a great deal. Furthermore, they have a full understanding of coal hydrogasificaton technology, which is favorable for - 204 - adopting this kind of advanced technology. (4) After investigation, Shenfu-Dongsheng Coalfield and Urumqi Coalfield in Xinjiang Autonomous Region are ideal mining areas for adopting coal hydro gasification technology because there are abundant coal re servers suitable for hdrogasification and the output of coal is high. Meanwhile, these two areas have good industiral bases and conditions, and the pipelines for natural gas nearby can convey the products from hydro gasification to consumers. (5) After investigation, Shanxi Province, a major province producing coal, especially, its capital-Taiyuan city, is one area with serious environmental pollution. Now, it has a strong desire to convert coal to clean energy, which forms the demand and market for coal hydro gasification technology. Costal cities such as Shanghai are the most developed areas of the Chinese economy and have huge energy consumption, which also forms the demand and market for coal hydrogasification technology. 5.2 Present Problems and Suggestions Regarding Coal Hydrogasification Technology 5.2.1 The Necessity of Large Scale Testing of Coal Hydrogasification Technology Japanese experts in coal chemical engineering, especially those engaged in coal gasification, have developed advanced coal hydrogasification technology and conducted successful tests on a small scale. But in order to realize the commecialization of this technology, large scale tests should be conducted so as to get necessary data and experience. 5.2.2 Hydrogasification Tests of Chinese Coal In this investigation report, the coal reserves sutiable for hydrogasification technology have been summarized. It is necessary to select several kinds of them for testing get data and reference materials. 5.2.3 Feasibility Study of Hrdrogasification Technology In order to realize the commercialization of coal hydrogasification technology in China, feasibility study must be conducted immediately. - 205 - — 206 — / V 4 * 5F t|j 207 Ill Appendix 1. Contract (Chinese) tiiMT KMSt ###**&*. m i mx-A& 'M: musirew-« ft isre restore xreinimr, m#twotoiitt a i■^jrflif®, m'M.Dus*t(btt*riiii'isnomrere m.#. m m 2 & &rez,3XAHmrm$*. m 3 & if ti # m h -j *#KS;i>BiJiti Hjc4m|'X9filt. —I IX- 'lu’cA* 1%...itfTM (s>. iimA#»rem. rez^A&n*# sure re se re re & i m. 1 9 9 9 A 7 M 3 0 I I $f* t - 208 - cn 1999^7^30 1. 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T\m 3 • & f mix iYjM ill tcm M • tiJyr^'lk^jE^ (#r#*k. MVl m. ) • MihX/JUrM il'i W j%iYj # • i)k ill H,JVr fJl K\ Hi!IX lHlYjntmtt JJii^ • Mili EJVi W fTril Jii| • HliXX^niY/xl M/; (JJilYi W ^iYjiHu^ il Jii|. MMvfi'i M fff) 3 • m >V^/ (fh l*yKrr ,'Jj,'.m "I filH'MJiMlM -210- 2. Classification of Chinese Coals ICS 7.3.040 D 20 GB National Standards of PRC GB 5751 — 86 Classification of Chinese Coals 1986-01-09 Issue 1986-10-1 For Trial Implementation China State Bureau of Technical Supervision Issue -211 - GB 575 I 86 Foreword In this standard, coals are classified according to coalificalion degree and technical properties. “ Classification of Chinese Coals ’’ belongs to technological / commercial classification of coals. It is necessary that the standard should interpret from Chinese into English according to GB 1.1 — 1993 (Directions for the work of standardization / Unit 1 : Drafting and presentation of standards / Part 1 : The general rules for dialling standards ). If so, the requirements for the text of standard should be enclosed, such as scope, normative references, and definitions. So, the standard GB/T 3715 — 1996 “Terms relating to, properties and analysis of coal ” should be extended as the one of normative references. The normative references in this standard are encouraged to apply the most recent editions of the standard, the new edition year ’s indicated in parentheses. In this standard, the units for measurement should be calculated in accordance with legal measurement units. This is line First time for publication of this standard. This standard is submitted by Ministry of Coal Industry and is under the jurisdiction of National Technical Committee for Standardization of Coal. This standard is drafted by Beijing Research Institute of Coal Chemistry, CCR1, Ministry of Coal Industry; Anshan Research Institute of Thermos-energy, Ministry of Metallurgy; Xi’an Branch ,CCR1, Ministry of Coal Industry; and Anshan Iron and Steel Cooperation, Ministry of Metallurgy. Main drafters of this standard: Anthracite : Chen Misheng, Tao Yuling, Zhang Xiuyi; Bituminous coal : Yang Jinlie, Chen Peng, Feng Anzu, Qu Yusheng, Hao Qi, Shi Mingyan ; Brown coal : Chen Wenming, Zu Chunsheng, Gong Zhicong This standard serves as a tentative standard from Oct. 1st, 1986 to Sept.30, 1989 and has become regular standard since Oct. 1st, 1989. The interpreter of this standard is Chen Peng -212- National Standards of PRC GB 5751 — 86 Classification of Chinese Coals 1 Scope This standard is applicable to the classification of anthracite (1 I 2 Normative references The following standards contain provisions which, through reference in this text, constitute provisions of this National Standard. At the time of publication, the editions indicated were valid. Ail standards are subject to revision, and parties to agreements based on this National Standard are encouraged to investigate the possibility of applying the most recent editions of the standards indicated below. GB 211 — 84(1995) Determination of total moisture in coal GB 212-77(91) Proximate analysis of coal GB 213 — 79(1996) Determination of calorific value of coal GB 474 — 83(1996) Method of preparation of coal sample GB 475 — 83(1996) Method of sampling of salable coal GB 476 — 79(91) Ultimate analysis of coal GB 479 — 64(87) Determination of plastic layer indices of bituminous coal GB 481 — 64(93) Method of sampling of produced coal GB 482 — 81(1995) Method of sampling of seam coal GB 2566 — 81(1995) Determination of transmittancy of low rank coal GB/T 3715 — 1996 Terms relating to properties and analysis of coal GB 4632 — 84(1997) Determination of moisture holding capacity GB 5447 — 85(1997) Determination of caking index of bituminous coal GB 5450 — 85(1997) Audibert-Arnu dilalomelcr test of bituminous coal Specifications of sampling of coal for exploration of coal resources issued by Ministry of - 213 - Coal lndushy(1979). 3 Dcfinit ions For llic purpose of this standard the definitions given in GB/T 3715 apply. 4 Classification parameters 4.1 In this standard, coals are classified according to coalilicalion degree and technical properties. 4.2 Parameters of coal ideation degree are used to differentiate anthracite, bituminous and brown coals. 4.3 Dry ash-free volatile matter and dry ash-free hydrogen content are used as parameters of coalification degree to differentiate the subclasses of anthracite. 4.4 Two parameters are used to ascertain the classes of bituminous coal------one for characterizing the coalification degree and the other for characterizing the caking property. Dry ash-free volatile matter is used as the parameter of coalification degree. As the parameter of caking property, according to the caking ability it is chosen among the caking index, the maximum thickness of plastic layer and Audibert-Arnu dilatation. 4.5 Transmittancy is used as the parameter of coalification degree for brown coals. This parameter is used to differentiate brown and bituminous coals and also used to divide brown coals into subclasses. Moist ash-free gross calorific value is used as auxiliary parameter to differentiate bituminous and blown coals. 5 Coal classes and coding 5.1 All coal classes are expressed by a two-digits number. The ten’s digit represents the grouping by volatile matter- 0 representing anthracites, 1 - 4 representing bituminous coals, 5 representing brown coals. For the units’ digit: 1-3 represent coalification degree of anthracites, 1 - 6 represent caking property of bituminous coals; 1 - 2 represent coalification degree of brown coals. 5.2 Classification and coding are made according to the respective tables and diagram. 5.2.1 Summarized table of coal classification (table 1); -214 - Table 1 Summarized table of coal classification Classification Parameter Class Symbol Code Number V.W, % l'w, % Antliracile WY 01,02,03 < 10.0 - 11,12,13,14,15,16 Bituminous YM 21,22,23,24,25,26 > 10.0 - Coal 31,32,33,34,35,36 41,42,43,44,45,46 Brown Coal HM 51,52 > 37.0 * < 50" * For Vdaf >37.0%, G < 5 ( in exploratory work, Vdaf >37.0%, coke residue No t -2 ), bituminous and brown coals are differentiated by transmittancy PM * * Coals with Vdaf >37.0%,, PM >50% are taken as bituminous coal; those with PM > 30 - 50 % are taken as brown coals, those with gross calorific value ( moist ash-free basis ) Qgr., mf, greater than 24 MJ/kg (5700 cal/g ) arc taken as long flame coals. 100(100- MHC) x 4.1816 x 10~3 (-V.hu// = x kg) Qgr.aj(cal/ g) 7~00(100 - Mad) - Aud (10() - MIC) 5.2.2 Classification of anthracite (table 2); Table 2 Classification of anthracite Classification Parameter Class Symbol Code Number Va* % H* daf, % Anthracite 1 WY 1 01 0 - 3.5 0 - 2.0 Anthracite 2 WY2 02 >3.5 - 6.5 >2.0 - 3.0 Anthracite 3 WY3 03 >6.5 - 10.0 >3.0 * In the routine work of classification at mines where the subclasses of anthracite have been ascertained, Vdaf may be solely used; in exploratory work, for ascertaining of subclasses in new areas or for checking of subclasses in old mines, both Vdaf and 1 lda, should be determined. Classification is effected according to table 2. If conflict between Vdaf and Hdal should happen, the result from Hdaf should be taken as the final. 5.2.3 Classification of bituminous coal (table 3); - 215 - Tiil'Ii* 3 Classification of bituminous coal 1 Class Classification Parameter Symbol Code Number V.i.,1, % G Y, mm b*\% j Mcagic coal PM 1 1 > 10.0 - 20.0 < 5 Meagre lean coal PS 12 >10.0 - 20.0 > 5 - 20 13 >10.0 - 20.0 >20 - 50 Lean coal SM 14 >10.0 - 20.0 > 50 - 65 15 >10.0 - 20.0 >65 * < 25.0 (< 150) Coking coal JM 24 >20.0 - 28.0 > 50 - 65 25 >20.0 - 28.0 >65 * < 25.0 (< 150) 16 > 10 - 20.0 (>85)' >25.0 (>150) Fat coal FM 26 > 20.0 - 28.0 ()' >25.0 (>150) 36 > 28.0 - 37.0 (>85)' >25.0 (>220) 1/3 Coking coal 1/3JM 35 > 28.0 - 37.0 >65 * < 25.0 (< 220) Gas fat coal QF 46 >37.0 (>85)' > 25.0 (>220) 34 > 28.0 - 37.0 >50-65 43 > 37.0 >35 - 50 Gas coal QM 44 >37.0 >50-65 45 >37.0 >65 * < 25.0 (< 220) 1/2 Medium caking 23 > 20.0 - 28.0 >30 - 50 1/2ZN coal 33 > 28.0 - 37.0 >30 - 50 22 >20.0 - 28.0 >5 - 30 Weakly caking Coal RN 32 > 28.0 - 37.0 >5 - 30 21 > 20.0 - 28.0 < 5 Non-caking coal BN 31 > 28.0 - 37 0 < 5 41 >37.0 < 5 Long flame coal CY 42 >37.0 >5-35 * If G < 85, coals arc classified by dry ash-free volatile matter Vda, and caking index G. If G >85, coals arc classified by dry ash-free volatile matter Vdai and maximum thickness of plastic layer Y or by dry ash-free volatile matter Vdal- and Audibert-Arnu dilatation b. * * If G >85, Y and b are used in conjugation as classification parameters. For Vdaf < 28.0% and >28.0%, b=150% and 220% arc taken respectively as the tentative demarcation lines. If conflict between b and Y should happen, the result from Y should be taken as the final. Ash content of coal samples used for classification higher than 10% should be reduced with zinc chloride solution according to GI3 474. 5.2.4 Classification of brown coal (table 4); -216- Table 4 Classification of brown coal Classification Parameter Class Symbol Code Number Pm, % Q pi .mar, MJ/kg Brown coal 1 HM 1 51 0 - 30 - Brown coal 2 HM 2 52 >30-50 < 24 * Coals with V^, >37.0% , PM >30 - 50%, if Qgr.maf >24 MJ/kg (5700 Cal/g) are classified as long flame coal. 5.2.5 Simplified table of coal classification (table 5); Table 5 Simplified table of coal classification Including Classification Parameter Class Symbol Qfcr.nmf, Code Number G Y, mm b, % P* *M, % MJ/kg Anthracite WY 01.02,03 < 10.0 Meagre coal PM 11 > 10.0 - 20.0 < 5 Meagre lean coal PS 12 > 10.0 - 20.0 >5-20 Lean coal SM 13,14 > 10.0 - 20.0 > 20 - 65 24 > 20.0 - 28.0 > 50 - 65 Coking coal JM 14,25 > 10.0 - 28.0 > 65 * < 25.0 (< 150) Fat coal FM 10,26,36 > 10.0 - 37.0 ( >85 ) * >25.0 * 1/3 Coking coal 1/3 JM 35 >28.0 - 37.0 >65* < 25.0 (< 220) Gas fat coal QF 46 >37.0 (>85)" > 25.0 ( >220) 34 >28.0 - 37.0 >50 - 65 Gas coal QM 43,44,45 >37.0 >35 < 25.0 (< 220) 1/2 Medium 1/2ZN 23,33 > 20.0 - 37.0 > 30 - 50 caking coal Weakly caking RN 22.32 > 20.0 - 37.0 >5 - 30 Coal Non-caking coal BN 21.31 > 20.0 - 37.0 < 5 Long flame coal CY 41,42 >37.0 < 35 >50 51 >37.0 < 30 Brown coal HM 52 >37.0 >30 - 50 < 24 * Coals with G >85 are further classified by Y or b into fat coal, gas fat coal and others. If Y >25.0nim, they classified as fat coal or gas fat coal; if Y < 25.0mm, they arc classified according to V&,, as other corresponding classes. When classified by b, coals with V * * Coals with Vtui >37.0%, G < 5 arc further classified by transmittnney Pm as long flame coal or brown coal. - 217 - * * * For coals xvilh Vdaf >37.0%, PM >30 - 50%, Qy.mnf values arc determined; those with Qgr.maf > 24 MJ/kg(5700 cal/g) arc taken as long flame coal. Note: Ash content (Ad ) of coal samples used for classification higher than 10% should he reduced with zinc chloiide solution ( in ease of brown coal liable to sliming, raw coal with relatively low ash content may be used). I or detail see GB 474. 5.2 6 Classification diagram for Chinese coals (see appendage page). Explanation: 1 .coal samples used for classification are prepared according to GB 474. Ash content ( Ad) of coal samples high than 10% should be reduced with zinc chloride solution ( in case of brown coal liable to sliming, raw coal with ash content as low as possible may be used ). 2.G=85 is the turning line of parameter. When G >85, Y and b are used as classification parameters in conjugation to differentiate fat coal or gas fat coal and other classes. Coals with Y >25.0 mm are classified as fat coal or gas fat coal; for V(|ar < 28.0%, and >28.0%, b=150% and 220% arc taken respectively as the tentative demarcation lines. If conflict between b and Y should happen, the result from Y should be taken as the final. 3.in the classification of anthracite into subclasses, if conflict between Hd3r and Vdaf should happen, the result from Hdaf should be taken as the final. 4.Coals with Vdaf >37.0%, PM >50% are taken as bituminous coal, for coals with PM >30 - 50%, those with Qgr ,maf >24 MJ/kg are taken as long flame coal. 6 Symbols 6.1 Classification parameters are expressed by the following symbols: Vdaf------dry ash -free volatile matter, %; Hdaf------dry ash -free hydrogen content, % Gr.i. (abridged as G)------caking index of bituminous coal; Y ------maximum thickness of plastic layer of bituminous coal, mm; b------Audibert-Arnu dilatation of bituminous coal, %; Pm------transmittancy of coal sample, %; Qgr.maf------gross calorific value ( on moist ash - free basis ) of coal, MJ/kg. 6.2 Name of coal classes may be expressed by the following symbols (alphabetic spelling -218- of Chines : characters): \VY----- anthracite; YM------bituminous coal; PM------meagre coal; PS------meagre lean coal; SM------lean coal; JM------coking coal; PM------fat coal; 1/3 JM------1/3 coking coal; QF------gas fat coal, QM------gas coal; 1/2 ZN------1/2 medium caking coal; RN------weakly caking coal; BN------non-caking coal; CY------long flame coal; I1M------brown coal. 7 Collection and preparation of samples 7.1 Samples used for classification are collected according to GB 482, GB 481 and GB 475 and « Specifications of sampling of coal for exploration of coal resources » issued by Ministry of Coal Industry (1979). 7.2 Samples used for classification arc prepared according to GB 474. Ash content ( Aj) of coal samples higher than 10% should be reduced with zinc chloride solution. 7.3 Standard anthracite used for determination of caking index should be collected, prepared and tested according to Appendix of GB 5447. 8 Methods of analysis 8.1 Dry ash -free volatile matter determined according to GB 212. 8.2 Dry ash -free hydrogen content determined according to GB 476. 8.3 Caking index determined according to GB 5447. 8.4 Maximum thickness of plastic layer determined according to GB 479. -219 - 8.5 Audibcrt-Arnu dilatation determined according to GB 5 ! 50. 8.6 Transmittancy determined according to GB 2566. 8.7 Calorific value determined according to GB 213. 8.8 Moisture holding capacity determined according to GB zl632. 8.9 Total moisture determined according to GB 211. - 220 - 16 1 26 1 36 46 | 1 | 1 at coal (IM) Gas — fat conl(QM) I r ----to - 1jU% ) 1 ----(b=220%)---- Y-25.0 . (mm) 15 1 25 35 45 1 1 Z3 Coking cool cliange die 85 1 parameter for coal (1Z3JM) classification above ^ Coking coal G this line (JM) Gas cord 65 14 24 34 44 (QM) 50 13 23 33 43 Lean coal (SM) 1Z2 Medium . caking coal (1/2ZN) | 35 , 42 30 22 * 32 1 20 12 Weakly | - caking coni Meager lean coal | (RN) Long flame coal (re) (CY) 1 11 (d a % 5 f) n 21 '31 41 Meagre cord Non —caking cord (15N) 0 2.0 3.0 0 (PM) 1 01 1 02 1 03 52 Brown coal 50 Mgr. No-1 1 No- 2 1 No- 3 No. 2 (HM2) WY1 | WY2 | WY3 30 51 Brown coal p M: Anthracite No. 2 (HM1) 1 1 1 0 0 3.5 6.5 10.0 20.0 28.0 37.0 V(d a () % Classification diagram for Chinese coals 221 m^iv*- ■ mm&ffim&ffl%mm 9 D — y • ^ —;v •7)'/,d — • ir fc'dvv «JS 03-3987-9444