Interfax-China reported that Datang International Power Generation Co Ltd started operations at the first phase of its Keshiketeng coal to gas plant in the Inner Mongolia Autonomous Region earlier this month after four months of pre-commission checks.

According to the local Chifeng Radio and TV Network Located in Chifeng City Keshiketeng County, the plant first phase has capacity to produce 1.34 billion cubic meters of synthetic natural gas annually.

Fed by Inner Mongolia Xilinhot City coalfields and the facility is set to produce four billion cubic meters of SNG annually to supply Beijing Municipality once all three phases are on line in 2012.

The project will cost a total of CNY 25.7 billion and includes a 361-kilometer gas pipeline connecting it with Beijing, Interfax previously reported. Construction began in August 2009.

Datang Energy Chemical Co Ltd a wholly owned unit of Datang Power holds a 54% stake in the project and operates it in partnership with state-owned Beijing Gas Group Co Ltd which owns a 34% stake.