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An arm of Sinopec (SNP) plans to build an advanced facility in the unlikely location of Medicine...

An arm of Sinopec (SNP) plans to build an advanced facility in the unlikely location of Medicine Bow, Wyo., in the next phase of China's advance into the U.S. energy market. SNP brings to the potentially expensive and complicated project of converting coal into gasoline less pricey Chinese components and materials, and may be the forefront of a bigger U.S. engineering push by Chinese companies.
Comments (4)
  • Tom Guttenberger
    , contributor
    Comments (717) | Send Message
     
    This is an interesting one, as it isn't the normal China pure resource grab. Maybe just a play on lower U.S. coal costs, and relatively inexpensive land. The litigation around this should be interesting. Quite bullish coal.
    6 Nov 2012, 12:49 PM Reply Like
  • gdonelson
    , contributor
    Comments (36) | Send Message
     
    A little curious as to why Sinopec needs to come to the US to do this project especially since China has some of the largest coal reserves of anywhere in the world. For a number of reasons wouldn't it be a better project in China?
    6 Nov 2012, 01:08 PM Reply Like
  • phdinsuntanning
    , contributor
    Comments (1242) | Send Message
     
    because of the basic economic principle of economics: "dope goes where addiction is" :)
    6 Nov 2012, 03:29 PM Reply Like
  • tomdotstar
    , contributor
    Comments (136) | Send Message
     
    They might need a lot of natural gas for the process. If so, the location might make sense...
    6 Nov 2012, 03:51 PM Reply Like
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