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Datang's decision to divest its coal-to-gas (CTG) projects, along with three coal-to-chemical projects, is raising questions about the attractiveness of a sector seen as a potential solution to China’s twin energy challenges of air pollution and rising gas demand. While the decision is primarily motived by loss-making coal-to-chemical, an improving outlook for China’s power generators and the high levels of capex associated with coal conversion could be taking the shine off CTG.
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This Gas Markets Inform report highlights the key issues surrounding this topic, and draws out the implications for those involved.
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Inform | Jul 2014
China's coal-to-gas ambitions dented by Datang's divestment
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