Each plant is expected to cost $5 billion to $6 billion. Should these CTL projects be brought to fruitition, they would begin operation about 2013.

"Recognized as a world leader in producing fuel from coal, with a track record of more than 50 years of proven commercial CTL experience, Sasol offers China commercially proven and world-class experience in converting coal reserves into synthetic liquid fuels," said Chen.

The company has established an office in Beijing, including a project team, to accelerate progress on the projects, he said.

The coal to chemical industry will be a growing sector in China, according a medium- and long-term plan for the development of industry, with the nation expected to invest more than 1 trillion yuan in the field by 2020.

The nation will focus on the production of liquefied coal, dimethyl ether (DME), coal-to-olefin (CTO) and coal methanol, said the plan.

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