China's coal-to-gas ambitions dented by Datang's divestment

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.