Jovo Energy(SH:605090) Zheng Quan Shi Bao Wang·2025-09-29 12:01Core Viewpoint - Jiufeng Energy plans to invest in a coal-to-natural gas project in collaboration with Xinjiang Qinghua and Henan Silk Road, with a total investment of 230.33 billion RMB, aiming to produce 5.5 billion cubic meters of natural gas annually [1][2]. Group 1: Project Overview - The project will involve a total investment of 230.33 billion RMB, with Jiufeng Energy contributing no more than 34.55 billion RMB, representing 30% of the total investment [1]. - The project is located in Yining County, Xinjiang, and consists of two coal-to-gas engineering series, each capable of producing 2 billion cubic meters of natural gas annually [1][2]. - The project aims to produce not only natural gas but also by-products such as tar, crude oil, and phenol [1]. Group 2: Financial and Operational Aspects - The project is expected to consume 11.796 million tons of raw coal annually, primarily sourced from the No. 2 and No. 7 mines in Yining [3]. - The estimated annual water consumption is approximately 22.316 million cubic meters, with relevant water extraction permits already obtained [3]. - The economic service life of the project is projected to be 15 years, with a conservative estimated return on investment of 11.74%, allowing for investment recovery in about 7 years [3]. Group 3: Strategic Importance - The project has received all necessary approvals, including from the National Development and Reform Commission, and is currently undergoing various assessments [2]. - The implementation of this project will help Jiufeng Energy fill its resource gap in equity gas and establish a diversified upstream resource pool [3]. - The project will enhance the company's cost advantages and self-control capabilities in the natural gas market [3].