GreatPoint Raises Funds for China Coal-to-Gas Project

GreatPoint Energy has raised $1.25 billion from China Wanxiang Holdings to finance and construct the first phase of one trillion cubic feet per year coal to natural gas production facility in Xinjiang, China.

The complex will be located near Turpan, Xinjiang Uyghur Autonomous Region (Xinjiang) and will utilize GreatPoint Energy’s BluegasTM technology. China Petroleum and Chemical Corp. (Sinopec), China’s has agreed to purchase the natural gas produced from the facility and has already announced plans to construct a pipeline to deliver the gas to the eastern provinces of China.

The facility will produce one trillion cubic feet (30 billion cubic meters) of natural gas per year. The first phase is expected to commence operation in 2015 with an initial annual natural gas production capacity of 30 billion cubic feet (0.85 billion cubic meters), which will expand to 116 billion cubic feet (3.4 billion cubic meters) of annual natural gas output within two years.

GreatPoint Energy intends to expand to other significant natural gas markets in and outside of China, including Japan, South Korea, India, and Europe, becoming a major global supplier of natural gas that will compete with traded Liquefied Natural Gas (LNG) and long-distance pipeline supplies in these markets.