In a recent interview with reporters, an official from the Xinjiang Uygur Autonomous Region emphasized that the flow of energy investments in China shows a clear shift toward the western regions, particularly in oil and gas development. Xinjiang is no longer just a reserve area but is increasingly becoming a key player in the nation’s energy strategy.
Currently, in the southern town of Korla, construction is underway on a major acetylene project with an annual production value of 250 million yuan. This marks the first joint venture between Sinopec Group and local private enterprises. Liu Genyuan, a director at Sinopec, highlighted that the project, backed by a total investment of 400 million yuan from Sinopec and Meike Group — China's largest furniture exporter — represents a significant step in utilizing Xinjiang’s abundant natural gas resources for large-scale chemical production.
Recently, Dalian Shide Group, a leading Chinese company in the chemical building materials sector, made a special visit to Xinjiang to sign a contract and announce its entry into coal, power generation, and coal chemical projects. The group is currently conducting risk exploration for a successful coalfield in the region. Once conditions are favorable, it plans to invest 6 billion yuan to build a coal mine capable of producing 5 million tons of coal annually, along with a methanol plant and a 600-megawatt power station. Meanwhile, the Xuzhou Coal Mining Group from Jiangsu has signed a 230 million yuan deal in Aksu Prefecture to develop a Russian Holbrooke coal mine and has also gained control over the Tacheng Tiemei Coal Industry Group in Xinjiang.
Before this, several major energy companies had already established a strong presence in Xinjiang. Over a dozen firms, including Shandong Luneng, China Huadian, Shenhua Group, SDIC, and Xuyuan Group, have invested tens of billions of yuan to plan large-scale power plants, coal chemical projects, and coal-to-oil initiatives. These investments underscore the growing interest in Xinjiang’s vast energy potential.
The three major basins — Tarim, Junggar, and Tuha — hold 20.9 billion tons of oil and 10.85 trillion cubic meters of natural gas, accounting for 25.5% and 27.9% of China’s onshore reserves, respectively. Xinjiang also boasts over 1.6 trillion tons of coal, making up 40% of the country’s total. In addition, the region is rich in solar and wind energy resources.
Furthermore, Xinjiang is emerging as a strategic base for Chinese companies seeking to expand into Central Asia’s energy and mineral markets. With its geographical advantage, it serves as a bridge between China and Central Asian countries. Recently, Xinjiang completed the "Guide to the Exploration and Exploitation of Mineral Resources in the Five Countries in Central Asia," offering practical insights for Chinese energy firms looking to explore opportunities in the region.
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