China Shenhua Energy said on 23 October 2026 that it will pay RMB617.67m (about US$92m) in cash for the 50% of Guoneng Xinjiang Coal-to-Gas Co. held by another unit of its parent, CHN Energy.
Why China Shenhua Energy Company Limited (via Guoneng Xinjiang Energy & Chemical) is buying Guoneng Xinjiang Coal-to-Gas Co., Ltd. (50%)
Shenhua said the purchase will strengthen the integrated operation of its business and the synergy of its coal-chemical activities, and improve efficiency. Once the deal is done the target becomes wholly owned by Guoneng Xinjiang Energy & Chemical and is consolidated by Shenhua.
Deal terms and financing
The price is based on the appraised value of the seller's paid-in share of the target as at 31 March 2026, plus RMB250m the seller has since contributed. It will be paid from Shenhua's own funds in a single payment within 30 days of the share transfer agreement taking effect, with no performance guarantee.
Regulatory approvals and timing
The deal is a connected transaction under Shanghai and Hong Kong listing rules, but it is below the threshold for a shareholder vote and needs no government approval. The two connected directors abstained from the board vote.
Market context
Guoneng Xinjiang Coal-to-Gas was set up in 2024 to build and run a coal-to-natural-gas plant in Xinjiang's Zhundong economic and technological development zone. Construction of the first 2bn cubic metre-a-year phase began in October 2025, and RMB1.78bn had been invested by the end of March 2026.
