“Coal to oil” may not use the current oil pricing mechanism – Sodium Tripolyphosphate Indu by hi joiney
China Shenhua Group and the world’s largest coal-oil production business in South Africa Sasol Synfuels International Limited, a joint venture in East China’s Ningxia Ninghe the construction of indirect coal liquefaction project, from December 2009 to submit to the National Development and Reform Commission approved the project consult document is currently awaiting government approval. The total investment of more than 8 billion U.S. dollars, an annual output of 3.85 million tons of coal-diesel oil project, will become the biggest Sino-foreign joint investment projects to date. National Development and Reform Commission issued a document in 2008 halted most of the coal liquefaction project, the Shenhua coal liquefaction project in the most critical is the catalyst for the highest-tech projects to get much right to speak, has been the focus of public concern. “And the cooperation of the Ning Dong Shenhua coal liquefaction project, according to the coal mines, coal-oil projects and catalyst manufacturers are divided into three project company, and were holding. Joint ventures in coal, Shenhua Ningxia Coal held by 51% of Shares, Sasol 49%; in coal liquefaction project, Shenhua and Sasol has a 50% stake each; catalyst manufacturers will be divided into three shareholders, holding 35% of Sasol, Shenhua held 30%, while the introduction of 35% stake held by foreign companies. ” Recently, South Africa, Sasol Synfuels International Limited, Tao Li Si said, China Shenhua and Sasol joint venture of Ningxia Ninghe East to build coal-oil energy base project, the equity distribution does not exist any differences, just waiting for state departments formal approval. Tao said that in December last year, Reese, who with partners submitted to the National Development and Reform Commission indirect coal liquefaction project is approved consult documents, is awaiting government approval. If approved construction of the smooth, then the project will be commissioned after 2016. Coal liquefaction project is needed because coal from a coal mine owned enterprises, they need only pay the cost of coal mining, construction and operation of the project costs are fixed, will not face raw material price fluctuations. When international oil prices remain at 86 dollars / barrel, coal liquefaction technology, profit margins will be maintained at around 13%, judging the international oil price will rise and remain at a reasonable price, I believe the 15% rate of return can be achieved. Li Si Tao said that a need the government to give a lot of support, because the huge demand for project funds, Chinese partners need coordination and help. For example, by western development policies to be relatively low tax concessions on imported equipment and VAT rebates as soon as possible return to duty, to take care of in the coal price, the right to receive benefits in the mining and so on. In South Africa, the South African government before 1980 to give grants, subsidies per liter of oil about 4 cents (South African rand); later agreed with the Government, when the international oil price at 28 U.S. dollars / barrel, the government subsidies given to them, otherwise they return part of profits; in the 1990s, the South African began to use imported crude oil market evaluation mechanism, oil is fully capable of competing with imported products. Of course, China has not adopted the current crude oil import market evaluation mechanism, he hopes to achieve by the future of communication, but rather East project what the price of final product to be sold not yet been determined, but not necessarily with the current refined oil pricing mechanism conduct. Able to secure high prices, it is possible to achieve the expected rate of return. Their feasibility study showed that production of 1 ton of oil needs about 8 tons of water, water demand is very large. However, the Government of Ningxia autonomous region of water is not a problem, replacement of water rights will then be addressed. Ningxia Tillage current irrigation methods still in use, efficiency is relatively low. About 70% of the Yellow River water is used for agricultural irrigation. Ningxia autonomous region behind the Government’s idea was to improve irrigation methods, irrigation and other methods by reducing demand for water, which replaced a part of the water for Ning East project. Now half of China’s oil consumption is to rely on imports, oil supply security by the potential threat, but China has huge coal reserves, and the Chinese government hopes that a clean way to use the coal resources, it is one of coal-oil can Select one. 2002, when he was Premier Zhu Rongji visit to South Africa, offered hope that the Sasol to invest in China, and in 2004 designated China Shenhua and Sasol model of cooperation. In addition to South Africa, China, India, and Indonesia Dushi coal-rich countries are also encountered the oil supply security, we are actively planning to set up the in the coal liquefaction business, Ningxiashasuo progress was undoubtedly the best one .
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