China's oil reserves are not sufficient to meet its fast-growing domestic demand. On the other hand, China has vast reserves of coal, which were opened up as part of an investment programme started back in the 1970s. Part of this programme is direct coal liquefaction with CtL (Coal to Liquid) technology, which is used to derive end-products like petrol, diesel, heating oil and aromat-ics for the chemicals industry from coal in a multi-stage process. The Shenhua Group, China's largest coal producer, is developing the coal field in Inner Mongolia, it is taking on the total investment and operation of the planned plants, some of which are already in construction.
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