Suxin Coal-to-Gas Project to First Build 400,000-Ton Ethylene Glycol Plant; Cooperation for Joint Development Planned

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Suxin Coal-to-Gas Project to First Build 400,000-Ton Ethylene Glycol Plant; Cooperation sought for joint development. Author/Source: Chemical Industry Network – Coal Chemicals. Date: March 26, 2018. Clicks: 18. It has been learned recently that the plan for the demonstration project for coal-to-natural gas production with an annual output of 4 billion standard cubic meters, part of the strategic clean energy cooperation project between Jiangsu and Xinjiang provinces that has been approved by the **National Development and Reform Commission, has been adjusted. After a comprehensive analysis of various factors such as the products involved, consumer markets, process technologies, and economic viability, it has been decided to prioritize the development of a project for producing 400,000 tons of ethylene glycol per year from coal. The project developer, Su New Energy and Feng Co., Ltd., is an entity for the development of coal-based clean energy; it is led by the State-owned Assets Supervision and Administration Commission of Jiangsu Province, and was established with joint investment from five major provincial-owned enterprises: Xuzhou Mining Group, Guoxin Group, Transportation Holding Group, Su Hao Group, and Huihong Group. It is reported that in August 2017, Jiangsu Province transferred Su New Energy entirely to Xuzhou Mining Group Co., Ltd. (referred to as “Xuzhou Mining Group”) for management. At present, Su New Energy is a wholly-owned subsidiary of Xuzhou Mining Group. Based on its assessment of the modern coal chemical industry, the company has sought extensive advice from design institutes, assembled professional technical expertise, and begun working on the 400,000-ton per year coal-to-ethylene glycol project. Meanwhile, the project is seeking construction partners. Recently, Tacheng in Xinjiang has been actively pushing forward this project, with the aim of facilitating cooperation between Su New Energy and Xinjiang Zhongtai (Group) Co., Ltd. for its construction. At present, Zhongtai Group is constructing a 1.2 million-ton PTA project in Korla, Bayingolin Mongol Autonomous Prefecture, as well as an integrated project for the co-processing of oil and coal with an annual production capacity of 4 million tons. It is working to develop and utilize oil and gas resources in Xinjiang, by combining petrochemicals with coal chemicals in order to transform these valuable resources into useful products ； Tacheng hopes that Zhongtai Group will take into account the actual circumstances of the 4-million-ton oil-coal co-processing integrated project under construction, make full use of the synergistic benefits between the two projects, and achieve mutual benefit through cooperation. On March 22, Li Liangfu, deputy general manager of Zhongtai Group, led a team to Tacheng Region to gain a detailed understanding of the infrastructure development in the Hefeng Industrial Park, as well as efforts to attract investment and the availability of supporting mineral and power resources. Li Liangfu and his party visited the construction command center for the Su New Energy coal-to-gas project in Hefeng Industrial Park, where they learned about the progress of the company’s project to produce 4 billion cubic meters of coal-to-natural gas per year, as well as the associated coal mining projects, and the coal-to-ethylene glycol project that is set to begin. Zhang Kaiyu, chairman of Su New Energy, provided a detailed overview of the company’s profile and future development plans, focusing on the progress of Su New Energy’s project to produce 4 billion cubic meters of coal-to-natural gas per year along with the associated coal mines, as well as the 400,000-ton coal-to-ethylene glycol project that is set to be launched. Zhang Kaiyu said that in August 2017, Jiangsu Province transferred Su New Energy entirely to the management of Xuzhou Mining Group Co., Ltd. At present, Su New Energy is a wholly-owned subsidiary of Xuchang Mining Group. Based on its assessment of the modern coal chemical industry, the company has sought extensive advice from design institutes, assembled professional technical expertise, and begun working on the 400,000-ton per year coal-to-ethylene glycol project. This project complements the 1.2 million ton per year PTA project and the 4 million ton per year integrated oil-coal processing project carried out by Zhongtai Group, allowing for coordinated development. Moreover, the area where the 400,000-ton per year coal-to-ethylene glycol project is located is rich in coal, salt, and limestone resources, making it an excellent choice for Zhongtai Group’s future industrial development plans. The Su New Energy coal-to-gas project is a strategic cooperation initiative for clean energy development between Jiangsu and Xinjiang provinces, and it is the first of the several coal-to-gas projects for which preliminary work was approved during that period to receive official approval. On October 21, 2016, the National Development and Reform Commission issued the “Reply on the Approval of the Demonstration Project for Producing 4 billion standard cubic meters of coal-derived natural gas per year by Jiangsu New Energy and Feng Co., Ltd.” (Document No. FGNY [2016] 2280), approving the commencement of construction for this project. On April 29, 2016, the **Ministry of Environmental Protection approved the Environmental Impact Assessment Report for Su New Energy and Feng Co., Ltd.’s project to produce 4 billion standard cubic meters per year of coal-based natural gas**. The project is primarily tasked with carrying out demonstration projects for the industrial application of self-developed methanation catalysts and process technologies. On November 29, 2017, the people’s government of Bayingolin Mongol Autonomous Prefecture in Xinjiang, Xinjiang Zhongtai (Group) Co., Ltd., and Beijing Zhongke Chengyi Technology Development Co., Ltd. held a signing ceremony for a cooperation project related to the combined processing of oil and coal. This marked the start of implementation of an integrated project for the deep processing of 4 million tons of heavy oil and coal, with a total investment of 27 billion yuan, in Bayingolin Mongol Autonomous Prefecture. Zhongtai Group plans to build an integrated project for the deep processing of heavy oil and coal in Bayingolin Mongol Autonomous Prefecture, with a capacity of 4 million tons per year. This project will enable the clean and efficient utilization of heavy oil and coal resources; it will process 2 million tons of heavy oil and 2 million tons of coal per year. The heavy oil will come from the Tahe Oil Field, while the coal will be local bituminous coal, both of which will be used to produce chemical products.