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France Total to invest $4b in coal chemical project

By LYU CHANG (chinadaily.com.cn) Updated: 2014-01-15 17:17

France's Total SA, an international oil and gas company, confirmed on Tuesday it has received approval from the Chinese government to invest $4 billion in a coal chemical project in the Inner Mongolia autonomous region, according to Reuters.

In an effort to reduce the country's reliance on oil imports, the petrochemical project of the French oil giant together with China Power Investment Corporation, one of the five largest State-owned electricity producers, will convert China's rich coal into gas and generate raw materials for plastic production.

Total SA, which received project approval from the National Development and Reform Commission, said the project is already in the research stage and scheduled to start after 2017.

"Our target is to tap into this fast-growing market," the spokesman said.

The plant in coal-rich region will have an annual capacity of 800,000 metric tons of polyethylene and polypropylene after it goes into production. Polyethylene is used in the production of plastic bags and plastic bottles, while polypropylene is a basic material for auto parts and textile products.

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