CNOOC invests in synthetic natural gas project

China National Offshore Oil Corp. (CNOOC) said it will expand its operations in northern China. It has inked an agreement with the city government of Datong in northern China a letter of intent with the Datong Coal Mine Group on the construction of a synthetic natural gas (SNG) project. The RMB30 billion (US$4.39 billion) project will require the construction of two 10 million ton-capacity coal mines and adjacent facilities, which will also produce some synthetic gas, gasoline, diesel fuel and other refined chemicals. It’s estimated that the coal-based clean energy project will pull in roughly RMB26 billion (US$3.8 billion) in sales revenues and RMB9 billion (US$1.32 billion) in taxes and profits. (May 25, 2009)