China has ordered the suspension of all but two coal-to-oil projects as it strives to curb excess investment in the sector and ease coal supply.

The two projects that have been approved to proceed are:
1) PROJECT: Majiata, Erdos in Inner Mongolia PARTNERS: Shenhua Group, parent of Shenhua Energy Co. Ltd.
TECHNOLOGY: direct coal liquefaction (DCL) technology developed by Shenhua
COST: n/a COAL VOLUME: n/a
OUTPUT VOLUME: 1 million tonnes (LPG, naphtha, diesel, phenol) EXPECTED START DATE: Q3 2008
DETAILS: Shenhua plans to expand its capacity to 5 million tonnes in the second phase.

2) PROJECT: Ningxia PARTNERS: Shenhua Ningxia Coal Ltd, a unit of Shenhua Group, Sasol Ltd (SOLJ.J: Quote, Profile, Research, Stock Buzz) from South Africa
TECHNOLOGY: Sasol's low temperature Fischer-Tropsch technology
COST: $5 bln COAL VOLUME: n/a OUTPUT VOLUME: 3 mln tonnes per year (80,000 barrels per day)
EXPECTED START DATE: 2012
DETAILS: Being planned (a feasibility study)

Other projects under planning or construction are:

1) PROJECT: Yulin in Shaanxi PARTNERS: Shenhua Group, Sasol from South Africa
TECHNOLOGY: Sasol's low temperature Fischer-Tropsch technology
COST: $5 bln COAL VOLUME: n/a OUTPUT VOLUME: 3 mln tonnes per year (80,000 bpd)
EXPECTED START DATE: 2012
DETAILS: Sasol has announced the feasibility study on the project will not proceed.

2) PROJECT: Ningxia PARTNERS: Shenhua Ningxia Coal Industry Co Ltd, Royal Dutch Shell
TECHNOLOGY: n/a COST:$5-$6 billion COAL VOLUME: n/a OUTPUT VOLUME: 3 million tonnes per year (70,000 bpd)
EXPECTED START DATE: 2012 DETAILS: n/a

3) PROJECT: Yulin area of Shaanxi PARTNERS: Yankuang Group, parent of Yanzhou Coal Mining Co (1171.HK: Quote, Profile, Research, Stock Buzz)
TECHNOLOGY: its own indirect CTL technology.
COST: 100 billion yuan ($14.6 billion) COAL VOLUME: n/a OUTPUT VOLUME: 1-million-tonne-per year (including diesel, naptha, LPG and special wax)
EXPECTED START DATE: 2012
DETAILS: It is a demonstration plant. But its capacity is to reach 5 million tonnes per year by the end of the first phase and 10 million tonnes in the second phase.

4) PROJECT: Tunliu in Shanxi PARTNERS: Lu'an Group, parent of Lu'an Environmental Energy Development Co(601699.SS: Quote, Profile, Research, Stock Buzz)
TECHNOLOGY: n/a COST: n/a COAL VOLUME: n/a OUTPUT VOLUME: 160,000 tonnes per year
EXPECTED START DATE: n/a DETAILS: n/a

5) PROJECT: Inner Mongolia PARTNERS: Yitai Group TECHNOLOGY: n/a
COST: 2.6 billion yuan already invested in the first phase COAL VOLUME: n/a OUTPUT VOLUME: 160,000 tonnes per year
EXPECTED START DATE: 2008
DETAILS: Capacity is expected to expand to 480,000 tonnes in the future.

OTHER-COAL RELATED PROJECTS:
1) PROJECT: Coal-to-chemical complex in Shaanxi PARTNERS: Shenhua Group, Dow Chemical Co
TECHNOLOGY: Convert coal to methanol for ethylene and propylene, which are used for making various plastics and chemical products
COST: n/a COAL VOLUME: n/a OUTPUT VOLUME: n/a
EXPECTED START DATE: n/a
DETAILS: They plan to finish a feasibility study by end-2008
2) PROJECT: Coal-to-gas, power and chemicals in Shaanxi PARTNERS: Xiwan, a venture between Anglo American and Shaanxi Coalfields Geological Bureau
TECHNOLOGY: n/a
COST: $4 bln COAL VOLUME: n/a OUTPUT VOLUME: n/a
EXPECTED START DATE: 2009
DETAILS: Being planned (a feasibility study)
Sources: Reuters, Information provided by China's top two coal-two-liquids players, Shenhua and Yankuang group, at a coal conference, and announcements from the companies involved in the projects.
 ($1=6.835 Yuan)
 (Reporting by Rujun Shen; Editing by Ben Tan)

(Reuters, Aug 29, 2008)