Shanxi Coking’s 600,000-ton coal-to-olefins project faces constraints: environmental assessment approvals denied

Thread Content

This post was last edited by liaifeng on 2018-8-15 at 18:43. Constraints faced by Shanxi Coking’s 600,000-ton coal-to-olefins project: environmental assessment restrictions. Author/Source: Date: 2017-09-25. Views: 23. Recently, Guo Wencang, Party Secretary, Chairman, and General Manager of Shanxi Coking, as well as Chairman of Shanjiao Feihong Company, convened a meeting for the company’s cadres. At this meeting, progress on three projects (a 1-million-ton/year integrated project for converting coke oven gas into methanol, a 1-million-ton/year coal-to-methanol project, and a 600,000-ton/year olefins project) was discussed, the prospects for these projects were analyzed, and clear requirements were set for the next steps in their development. It is reported that as of September 2017, the three projects were progressing simultaneously in an orderly manner – the comprehensive renovation project for producing methanol from 1 million tons per year of coke oven gas had completed the bidding process for the gas production processes, proprietary synthesis technologies, and specialized equipment ； The bidding process for the air separation unit in the public auxiliary facilities has been completed ； The bidding process for the thermal power plant boilers has been completed ； The overall design review was completed in August ； The preliminary design is currently in progress, with completion planned for October. The feasibility study for the 1 million tons per year coal-to-methanol project was reviewed by experts in July, and revisions were made based on their suggestions ； The project feasibility study has gone through the company’s internal decision-making process, and it is currently under review by the Group Company’s Planning and Development Department. For the 600,000 tons/year olefins project, the basic design was upgraded and improved in accordance with **new environmental requirements and technical specifications. Since the preliminary design for the olefin project was completed in 2014, technical adjustments have been made in light of changes in market demand for products over the past three years, with the product specifications being optimized as a result. The practical problem at hand is that the olefin plant was originally scheduled to begin operations on a large scale in October. However, since the environmental approval restrictions imposed by Linfen City have not been lifted, it has been impossible to obtain approval for the project aimed at producing methanol from 1 million tons per year of coke oven gas. The environmental impact assessment report has already been prepared and approved by environmental experts; what’s needed now is the lifting of those restrictions so that the approval process can proceed. At the same time, other factors related to the environmental impact assessment approval are as follows: the plan for the Hongtong Economic and Technological Development Zone (formerly the Shanxi Zhaocheng Fine Coal Chemical Industry Park) does not include the company’s three projects; therefore, it is necessary to revise this plan and incorporate the 600,000 tons per year methanol-to-olefins project along with related methanol production facilities into the park’s plan ； At the same time, the environmental impact assessment report for the park also needs to be revised to include the integrated project ； There are also railway approvals, land acquisition, and farmland replacement, all of which are affected by the restrictions imposed by environmental impact assessments. Project construction is an integrated whole; changing one aspect affects the entire system. Due to environmental impact assessments that restrict approvals, as well as long-term equipment procurement processes and land acquisition and demolition tasks, no further progress can be made. There is no clear deadline for lifting the environmental assessment restrictions on the methanol project; if the land is acquired and the necessary preparations such as infrastructure development are completed, but construction cannot start, it is very likely that the land will be classified as idle land ； If the olefin MTO plant starts operation in October and the olefin project is built first, the 10.2 billion yuan in investment will remain unused, and interest to the bank will still have to be paid. Chairman Guo Wencang believes that the biggest factor currently preventing the large-scale commencement of these projects is the environmental assessment restrictions in Linfen City; if these restrictions are not lifted in October, it is likely that they will not be removed until after the heating season ends next year. This period is also a buffer time, during which work can be done more meticulously.