Reuters reported that Chinese power company Huaneng plans to spend more than CNY 100 billion in coal, natural gas and power generation in the far western region of Xinjiang, home to vast deposits of untapped coal.

Huaneng Group signed an agreement with the Xinjiang government recently to construct energy bases in the Junggar Basin, the Turpan Basin and Hami, better known for its melon production.

China recently unveiled a plan for developing Xinjiang, an energy-rich region bordering central Asia that is home to Uighurs, a Muslim, Turkic-speaking people who often chafe at rule from Beijing and at the influx of Han Chinese.

Northern Xinjiang is already home to massive Chinese oil and gas projects, and new roads and rail make coal deposits accessible for transport to booming eastern China.

Xinhua citing general manager Cao Peixi said Huaneng plans to install annual power generating capacity of 10 million kilowatts in Xinjiang by the end of 2020, while producing 60 million tonnes of coal and 6 billion cubic meters of natural gas derived from coal. It would buy up coal deposits and install hydropower and wind power projects.

China has promoted the development of coal and power projects further and further west as rapid growth has depleted traditional deposits and as wealthier eastern cities grows increasingly concerned about the effects of severe air, water and soil pollution.

(Sourced from Reuters)