Beside the huge reaction vessels, workers are hoisting a batch of pipelines. With the official start of TBEA's 17-billion-yuan coal-to-natural gas project in Jungar Economic and Technological Development Zone, Xinjiang's coal chemical industry has officially entered a new stage of high-speed development. In Jiangjunmiao Industrial Park of Jungar Economic and Technological Development Zone, the 2 billion cubic meters per year coal-to-natural gas project of TBEA Xinjiang Zhunneng Chemical Co., Ltd. has officially started construction, with a total investment of 17 billion yuan. The project fully adopts an advanced process system featuring high-endization, greenization, and intelligence, innovatively integrating carbon capture, utilization and storage (CCUS) technology and a green power-to-hydrogen system.

Image Source: China Energy News

PART 01 Industry Wave: Xinjiang Coal Chemical Industry Enters a New Era

Xinjiang, this vast land accounting for 7% of China's total coal resource reserves, is emerging as a new highland for the country's coal chemical industry. The Jungar Coalfield, with predicted coal reserves of 390 billion tons, the largest integrated coalfield in China, has become an important pillar for national energy security.

Driven by the dual strategies of the "dual carbon" goals (carbon peaking and carbon neutrality) and energy security, Xinjiang is undergoing a profound transformation in its coal chemical industry, leveraging its unique coal resources and geographical advantages.

Data shows that Jungar Development Zone in Xinjiang plans to achieve a coal-to-natural gas production capacity of 14 billion cubic meters per year and a coal-to-olefins production capacity of 8.7 million tons per year by 2030. The conversion rate of clean and efficient downstream coal utilization is expected to exceed 40%.

This industrial transformation is reflected not only in scale expansion but also in quality improvement. Xinjiang's coal chemical industry is transitioning from a traditional high-energy-consumption model to a green, low-carbon, high-end, and refined direction.

Take Xinxing City as an example: the local area is building a new pattern of a 100-billion-yuan coal chemical circular industry, promoting the transformation of traditional coal chemical industry to modern green chemical industry, and striving to construct a 100-billion-yuan green coal chemical industry cluster.

PART 02 Project Boom: New Opportunities Behind 100-Billion-Yuan Investments

From 2025 to the beginning of 2026, Xinjiang's coal chemical sector has witnessed a "blowout" of project launches.

In Jungar Economic and Technological Development Zone, a number of major coal chemical projects are accelerating. These include Shandong Energy Chemical and Dongming Plastic's 1.6 million tons per year coal-to-olefins project, and the 6 billion cubic meters per year coal-to-natural gas projects represented by China Energy Investment Corporation, Xinjiang Tianchi Energy Co., Ltd., and Xinjiang Xinyeye Energy Chemical Co., Ltd.

Below is a brief overview of some under-construction coal chemical projects in Xinjiang:

◆Jungar Economic and Technological Development Zone Project Cluster

Project Representative: TBEA's 2 billion cubic meters/year coal-to-natural gas project

Investment Scale: 17 billion yuan 

Construction Status: Under construction 

Expected Commissioning: Fully operational in 2027

◆Tuokexun Energy and Heavy Chemical Industry Park Project

Project Representative: Xinjiang Yihang's 5 million tons/year clean and efficient coal utilization

project Investment Scale: 7.1 billion yuan

Construction Status: Equipment bidding in progress 

Expected Commissioning: Phase I to be completed in 33 months 

◆13th Division Xinxing City Project Group 

Project Representative: Zhongneng Lvyuan's integrated clean and efficient resource utilization project 

Investment Scale: 8.7 billion yuan 

Construction Status: Phase I under trial production 

Expected Commissioning: Entered trial production phase 

In Tuokexun Energy and Heavy Chemical Industry Park, Xinjiang Yihang New Materials Co., Ltd.'s 5 million tons/year clean and efficient comprehensive coal utilization demonstration project is in full swing with equipment bidding, involving an investment of 7.1 billion yuan.

The project adopts the "oil-rich coal graded upgrading + circular economy" model, relying on the high-quality long-flame coal resources with ultra-low sulfur and high calorific value in the Heishan Mining Area of Tuokexun County.

Image Source: Xinjiang Daily

PART 03 Equipment Demand: Technological Upgrading Spawns a Blue Ocean Market

With the large-scale construction of coal chemical projects in Xinjiang, the demand for advanced chemical equipment has shown explosive growth. Projects generally adopt advanced process systems with high-endization, greenization, and intelligence, placing higher requirements on the technological content of equipment.

The recent bidding announcement released by Xinjiang Yihang New Materials Co., Ltd.'s 5 million tons/year clean and efficient comprehensive coal utilization demonstration project reveals the huge demand for professional equipment in coal chemical projects. The bidding scope includes core equipment such as electric tar precipitators, horizontal tube coolers, gas fans, and condensate pumps.

 Notably, the project imposes strict requirements on all equipment to adapt to the extreme climate in Tuokexun, including an extreme maximum temperature of 48.8℃, an extreme minimum temperature of -20.4℃, and windy conditions.

This reflects the special technical requirements for chemical equipment imposed by Xinjiang's unique natural environment, and also provides market opportunities for equipment manufacturers with environment-adaptive technologies.

Xinjiang Xinyeye Group's Jungar 2 billion cubic meters/year coal-to-natural gas project demonstrates the rising trend of localization rate in the coal chemical industry. The localization rate of this project exceeds 98%, and it is also actively promoting the localization research and development of low-temperature methanol washing, methanation technology, and catalysts.

PART 04 Green Transformation: Technological Innovation Under the "Dual Carbon" Goals 

Against the backdrop of the "dual carbon" strategy, Xinjiang's coal chemical projects are actively exploring green and low-carbon development paths. Multiple projects have introduced large-scale replacement of green electricity and green hydrogen, as well as carbon capture technology.

TBEA's coal-to-natural gas project has innovatively built a "photovoltaic-electricity-hydrogen-carbon" multi-energy coupling system, which is expected to reduce the carbon emission intensity of the entire coal chemical process by more than 30%.

Xinjiang Xinyeye Group's project plans a carbon capture scale of 650,000 tons per year, to be constructed in two phases. The project also includes water electrolysis hydrogen production equipment, which will synthesize methanol from the produced hydrogen and carbon dioxide emitted from low-temperature methanol washing, adopting a one-step direct methanol synthesis process.

In terms of technical routes, multiple projects adopt advanced Aerospace pulverized coal pressurized gasification technology. The fourth-generation technology adopted by Zhongneng Lvyuan Chemical's project increases the gasification pressure by 2.0 MPa compared with traditional processes, achieving a carbon conversion rate of 99% and an effective gas composition exceeding 92%.

PART 05 Platform Value: The Bridging Role of CTEF2026 Xinjiang Chemical Technology and Equipment Expo

Facing the vigorous development of Xinjiang's coal chemical industry, the Northwest Chemical Technology and Equipment Conference — CTEF2026 Xinjiang International Chemical Technology and Equipment Expo will build an efficient platform connecting supply and demand. Held at Xinjiang International Convention and Exhibition Center from July 16 to 18, 2026, the expo will gather global leading chemical equipment enterprises, centrally showcase cutting-edge technologies and innovative achievements, and provide a strategic platform for the Xinjiang and Central Asian markets.

The expo is expected to cover an exhibition area of 40,000 square meters, attracting 500 global leading enterprises and 30,000 industry elites. The buyer group includes more than 20 key chemical industrial parks in Xinjiang, over 500 leading energy and chemical enterprises, and more than 100 national-level design institutes and engineering general contracting units. These professional procurement teams will attend the expo with clear procurement needs and technical standards, focusing on inspecting high-end equipment and solutions such as chlor-alkali plant equipment, coal chemical equipment, petrochemical equipment, chemical unit equipment, pumps, valves and pipelines, automation and instrumentation, laboratory instruments and equipment, smart factories and digital solutions, and environmental governance technology and equipment.

PART 06 Exhibition Value: The Best Time to Seize the Xinjiang Market

For chemical equipment enterprises, participating in the 2026 Xinjiang International Chemical Technology and Equipment Expo will bring multiple values:

Seize the Northwest Energy Equipment Market: Guided by the national energy security strategy, the country is promoting the strategic westward shift of the chemical industry to resource-rich areas in the west. The expo gathers key chemical parks, leading energy and chemical enterprises, and engineering general contracting units in Xinjiang, enabling precise connection with 100-billion-yuan project orders. 

Open Up International Channels to Central Asia: Gather international buyers from 14 countries including Kazakhstan, Uzbekistan, Kyrgyzstan, Turkmenistan, and Pakistan. Take Xinjiang as a fulcrum to layout the Central Asian oil and gas equipment market and respond to the Belt and Road Initiative. 

Technological Upgrading and Industry-University-Research Collaboration: Through multiple high-end technical forums focusing on green and low-carbon transformation, coal chemical industry development, oil and gas development, Belt and Road market expansion, and industry-university-research technical exchanges, help enterprises grasp technical trends. 

Gathering of Over 500 Domestic and Foreign Leading Energy Equipment Enterprises: Include Far East Smarter Energy Group, Hermetic-Pumpen GmbH, Yan'an Energy Equipment Group, and other domestic and foreign leading enterprises. 

Invitation of 50,000 Targeted Buyers: Hundreds of domestic and foreign visiting units covering the entire industrial chain of petroleum and petrochemicals, natural gas, oil and gas pipeline transportation, coal chemical industry, salt chemical industry, chlor-alkali chemical industry, pesticides and chemical fertilizers, etc.

On the construction sites of Jungar Economic and Technological Development Zone in Xinjiang, heavy machinery operates around the clock. By 2030, the coal-to-natural gas production capacity here will reach 14 billion cubic meters, and the coal-to-oil production capacity will reach 6 million tons.

The 100-billion-yuan industrial cluster on the planning drawings is becoming a reality. In Naomaohu Economic and Technological Development Zone of Xinxing City, the circular industrial chain of "coal-electricity-oil-gas-chemicals-materials" has initially taken shape.