China Energy Investment has signed a memorandum of understanding (MOU) with the state of West Virginia to invest $83.7bn in shale gas, power and chemical projects in the US state.
The MoU is part of the US-China Business Exchange trade mission aimed at strengthening ties between the two countries and was signed during US President Donald Trump’s visit to Beijing, China.
During the visit, the two countries signed deals worth $250bn for investment in various sectors in the US.
The Chinese firm will make the $83.7bn investment over 20 years period in projects which will cover power generation, chemical manufacturing, and underground storage of natural gas liquids and derivatives.
West Virginia Senator Shelley Moore Capito said: “From driving growth and creating jobs to maximizing America’s energy potential, the benefits for West Virginia and the country from this new investment will be significant.”
The West Virginia Department of Commerce said that the Chinese firm selected the state for its major investment plan as the region is estimated to hold the world's largest shale gas reserves.
Capito added: "Expanding Appalachia's energy infrastructure, including developing a regional storage hub and market for natural gas liquids, will have a transformative effect on our economy, our security, and our future.”
Congressman David McKinley said: "This investment in shale gas resources located here in West Virginia will spur tremendous economic growth in our communities.”
China Energy was recently launched through the merger of China's state-owned coal mining company Shenhua Group and energy producer Guodian Group.
Employing more than 326,00 people, China Energy has an about 225GW of installed power generation capacity, reported Reuters.
Image: China Energy signed the MoU with the state of West Virginia during US President Donald Trump’s visit to Beijing. Photo: courtesy of The West Virginia Department of Commerce.