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Royal Dutch Shell Plc. com: SHELL PLANS TO PARTICIPATE IN CHINA’S COAL GASIFICATION PROJECT

From Asia Pulse

BEIJING, June 30 Asia Pulse – Shell plans to participate in China’s coal gasification project and synthesis gas project with its coal gasification technology, an officer in charge of Shell (China) Co.’s Clean Coal Business told the Xinhua-run Shanghai Securities News.

It is a significant strategic transform for Shell, which has been transferring coal gasification technology in China over the past five years.

It means that Shell will share both interest and risks with its Chinese joint venture partners, instead of making gains from technology transfer.

Due to the high price of oil, China has taken the building of coal-to-oil project as a strategic task to readjust the energy structure. And it has attracted more and more domestic and foreign enterprises, including Shell, GE and Siemens, to invest in related projects.

Shell has so far transferred its technology to 14 coal gasification projects in China, and engaged in only one project in the form of joint venture in the preliminary stage.

Actually, before Shell, the Beijing Sustec Coal Gasification Technology Co., Ltd., a 50 per cent-50 per cent joint venture between Ningxia Coal Mining Group and Sustec Group of Switzerland, had taken a lead to explore the coal gasification market in the form of joint venture. It has pocketed four orders in China at present.

In addition, Siemens and Shenhua Group have also squeezed into the field, by controlling the Beijing Sustec Coal Gasification Technology Co., Ltd. and reorganizing Ningxi Coal Mining Group respectively.

For Shell, to launch joint venture means to obtain orders for coal gasification technology, while sharing revenues of coal gasification and synthesis gas project. And for those enterprises that plan to build coal gasification project, joint venture means reduction in cost.

(XIC)

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