China has revived a $3.7 billion coal-to-gas project, signaling a shift in its energy strategy amid global gas supply disruptions. The move comes as the country seeks to diversify its fuel mix while the Middle East remains a volatile source. According to Bloomberg , the project, originally launched in 2011, was halted in 2014 after environmental, cost and logistical challenges emerged. The current revival reflects a changed market environment that has made the economics more attractive. Bloomberg reported that China now has 13 coal-to-gas projects either under construction or in planning. If all are completed, the combined capacity could increase synthetic gas output sevenfold to over 52 billion cu m, which would represent about 12% of the country's total gas supply, according to OilChem . In addition to gas production, China is set to commission as many as 85 coal-powered units this year, a figure that underscores its continued reliance on coal for power generation. This number is part of a global total of 104 new coal projects slated for start-up in 2026, as highlighted by Global Energy Monitor . Bloomberg noted that the war between the U.S. and Israel, and Iran, has disrupted Gulf gas supplies, prompting China to accelerate alternative projects. The revival of the Fuxin project demonstrates the country's ability to adapt its energy portfolio in response to external shocks. Looking ahead, the successful commissioning of the Fuxin plant could position China as a key synthetic gas producer, providing a buffer against future supply disruptions and supporting its broader energy transition goals.