The Shenua Ningxia Coal Industry Group and its partner Sasol, today signed a contract with Foster Wheeler International Corporation and Wuhuan Engineering Company to carry out the Feasibility Study for an 80 000 bbl/d coal to liquids (CTL)plant at the Ningdong Chemicals Base in the Ningxia Hui Autonomous Region of China.

The Ningdong base is already well advanced with a number of operating plants in existence and many others under construction. Extensive infrastructure exists, including power and water supply as well as roads, rail, housing and maintenance facilities. The site for a CTL plant has been prepared and the surrounding area also contains massive coal reserves.
 
This follows a recent announcement by the National Reform and Development Commission of China which paved the way for the feasibility study on the Shenhua - Ningxia Sasol CTL Project to continue.
 
The completion of the feasibility Study will be an important step in obtaining all the necessary approvals associated with constructing a world scale CTL plant in the Ningxia Hui Autonomous Region. China needs to find ways to meet its increasing demand for environmentally friendly fuels, and the CTL route is seen as a promising option.
 
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