Zhitong Finance App News, China Shenhua (01088) announced that on October 23, 2026, the board of directors reviewed and approved the acquisition. According to the “Equity Transfer Agreement”, Xinjiang Energy, a wholly-owned subsidiary of the company, plans to buy 50% of the shares of the coal-to-gas company held by Western Energy for about 618 million yuan in cash consideration. After the acquisition is completed, Xinjiang Energy will hold 100% of the shares in the Coal-to-Gas Company. The Coal-to-Gas Company will become an indirect wholly-owned subsidiary of the company and will be included in the scope of the company's consolidated financial statements.
According to reports, the Coal-to-Gas Company is mainly responsible for the investment, development, construction, and operation of the 2 billion m3/year coal-to-natural gas project in Zhundong. The project is located in West Heishan Industrial Park in the Zhundong Economic and Technological Development Zone in Xinjiang. The first phase of the project will build a 2 billion m3/year coal-to-natural gas production line. The total investment of the project is estimated at RMB 15.077 billion. Construction will commence in October 2025, and it is planned to start testing by the end of 2027. As of the end of March 2026, a total investment of RMB 1,775 billion had been completed.
Since the feedstock coal and fuel coal required by the coal-to-gas company are mainly supplied by the Xinjiang Energy Hongshaquan Coal Mine, this acquisition is conducive to further deepening industrial collaboration in the Group's coal chemical business, optimizing the layout of the coal chemical industry, and strengthening the integrated business pattern. Furthermore, the acquisition will help reduce ongoing coal supply-related transactions between the Group and the National Energy Group.