China Moves Into Medicine Bow, Wyoming; Coal --> Gasoline

Link here to the WSJ: Sinopec moves into small US town.

An arm of state-controlled Sinopec Group, also known as China Petrochemical Corp., is planning to build an advanced facility there that will convert coal into gasoline, which will capture and reuse carbon dioxide otherwise emitted into the atmosphere. 

Sinopec brings to the potentially expensive and complicated project less pricey Chinese components and materials. It may also open up the doors to attractive Chinese capital.

"What's important obviously is their ability to source internationally components here," said Bob Kelly, executive chairman of Houston-based DKRW Advanced Fuels, which contracted Sinopec and will own and operate the plant through a unit. "They have one of the most competitive procurement arms I think world-wide."

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DKRW? I first blogged about DKRW more than a year ago. I was struck by their comments at their website back in June, 2011:

This is what DKRW was saying on their website just one year ago:

The most conservative estimates of North American natural gas supply demonstrate a serious shortfall in production for the foreseeable future. With short supply driving prices higher, we are now seeing some of the highest natural gas prices in the world here in the Southwestern United States and Mexico. With so much of our energy infrastructure and industry tied directly to natural gas, it is necessary to identify and deliver more competitive supply options in order for the US and Mexican economies to grow.

 Wow, how times have changed. I wrote DKRW when I first saw this at their website, but did not receive a response. Subsequently they changed their views to reflect reality.