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China Restarts Stalled Coal-to-Gas Project After Decade-Long Halt

 


November 5, 2026 - China Datang Corp's Fuxin coal-to-gas demonstration project, the largest of its kind in northeastern China, has brought its first production line into operation, feeding synthetic natural gas into the national pipeline network.

The first line, with a designed daily output of 4 million cubic meters, can meet the daily gas demand of about 400,000 households during peak heating season, according to the project operator.

The Fuxin project has a total planned annual capacity of 4 billion cubic meters (Bcm) of natural gas, with the first line accounting for 1.33 Bcm. It uses low-rank coal such as eastern Inner Mongolia lignite as feedstock, converting it into natural gas through gasification, purification and synthesis, with by-products including tar.

The first line is expected to produce 1.33 Bcm of gas annually, consuming about 7.5 million tonnes of low-rank coal and generating an estimated annual output value of more than 4 billion yuan ($595 million). Coupled with integrated new energy operations in a later phase, industrial output value is expected to exceed 5.5 billion yuan.

The gas is delivered through two channels: a supporting long-distance pipeline of more than 300 km that directly supplies cities including Shenyang and Fuxin, benefiting more than 10 million people, and injection into the national pipeline network to form an incremental, self-controlled gas source serving northeastern and northern China.

The project also recovers and utilizes by-products generated during production, achieving full resource utilization and multiple outputs from coal while ensuring stable gas supply for residents.

A dedicated transport corridor linking coal mines in eastern Inner Mongolia to the Fuxin project via national railway trunk lines has been completed, capable of delivering more than 7 million tonnes of coal annually, covering over 90% of the project's coal demand, according to CCTV.

Fuxin will deepen cooperation between central and local governments, using the Datang project to extend the coal chemical industrial chain and foster new quality productive forces, according to Liaoning Daily. China Datang said it will pursue high-end, diversified and low-carbon development to make Fuxin a green demonstration benchmark for integrated coal-to-gas and new energy development.