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Feasibility of Coal Hydrogasification Technology in China

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Feasibility of Coal Hydrogasification Technology in China 0? ^ ^ ~~ null tit WU2^3B lt±) M-r s ®f£5fe (tt) ## fNfc VfiK 12^3 M 221 1 #*, wmicm&i-a c & t < @* lx, e@mao^mic#i& i"5 «T##&#'i-5?K7k*Wn#%'(kK#<D#a:&##g%t lx, rro SfflIt& W«1" 5 ±X&5 & tfc£@3-tt ic MX 5 P$9F% & 5 * ^s|+iE t L XfTtcXV'6. ¥/$ 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
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