Shenhua Energy starts railway project in Inner Mongolia

China Shenhua Energy Co. Ltd. is concentrating its efforts on developing China’s Inner Mongolia Autonomous Region. It announced in March a plan to build a 128.8-kilometer railway line worth RMB1.74 billion (US$254.91 million) in the region. The energy company has earmarked funds for 90% of the cost of the railway, while the remaining funds will be injected by China’s National Development and Reform Commission (NDRC). Shenhua also said it plans to complete and open the first production line of its direct coal liquefaction (DCL) project in Ordos City, Inner Mongolia in May. The DCL project, which is being built in two stages, will have an estimated yearly oil output of five million tons. Another project in the area includes a coal-to-liquid (CTL) project supported by Inner Mongolia Yitai Group (IMYG). Shenhua and IMYG will use an indirect liquefaction process developed by Synfuels China Inc. (March 4/6/9/10, 2009)