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Leaders of the city of Datong, Shanxi province held discussions on a coal-derived natural gas project with the China National Offshore Oil Corp (CNOOC), at the Holiday Inn in Datong, on Aug 14, and about support projects.

The CNOOC and Datong Coal Mine Group are set to begin work on a coal-derived natural gas project, in Zuoyun county, near Datong, that they have put 25.3 billion yuan ($4.14 million) into. The work is expected to finish in 39 months, with an annual natural gas output of 4 billion cubic meters, making it an important project for Shanxi's economy. The support projects, still in the planning stage, are for extending the coal industry chain and include water and heat supply, waste disposal, and transportation.

Li Junming, deputy Party secretary and mayor of Datong, says they value the project a lot and that it is a significant step forward for their economy. He also says the government will provide support in some areas, including construction work on support projects.

Zheng Changbo, chairman and general manager of CNOOC, says they will do whatever they can to complete the project by 2016.

Datong leaders also spoke with the China National Pharmaceutical (Group) Corp and China National Building Materials (Group) Corp, the same day, where Li said he hopes National Building Materials can use new technology for an old housing reconstruction project in Datong, which was affected by heavy rainfall. He also said that government support from the two large companies in Datong will produce winning results.

Song Zhiping, chairman of the two large companies, says they will put social responsibility first in helping with the development of Datong.

Edited by Zhou Yuanyuan and Roger Bradshaw