52.9 billion! The large-scale petrochemical project of Yanchang Petroleum is being implemented!

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Recently, the Yulin coal-to-clean-fuel upgrading demonstration project was also officially signed and put into implementation. The initial investment for this project amounts to 52.9 billion yuan, with the goal of establishing the world’s largest base for coal-based clean fuels. As coal chemical projects increase in number, numerous \"coal chemical giants\" with investments in the range of tens or hundreds of billions have emerged one after another. What impact will this have on the industry? As early as 2023, the Yulin coal-to-clean-fuel upgrading demonstration project was approved. The project is located in the Energy and Chemical Industry Park of Jingbian Economic Development Zone, with an overall planned production capacity of 5 million tons per year; the proportion of oil products to chemical products produced is 1:1. The first phase of the project involves a demonstration project for the technological upgrading of coal-based clean fuels and high-end chemicals with an annual production capacity of 2.4 million tons, as well as the construction of supporting coal mines. The main entity responsible for the project is Shaanxi Yanchang Yueneng Clean Energy Co., Ltd., which is in charge of advancing all aspects of the project. According to Tianyancha, the company has three shareholders: Shaanxi Yulin Energy Group Co., Ltd., Zhongke Synthetic Oil Technology Co., Ltd., and Shaanxi Yanchang Petroleum (Group) Co., Ltd. Among them, Yanchang Petroleum holds a 51% stake and is the controlling shareholder. In recent years, Yanchang Petroleum’s coal chemical industry has developed rapidly; it has not only established a coal chemical company but also launched several coal chemical projects. Among them, Yulin Coal Chemical Company uses coal as a raw material to produce methanol, ethanol, and acetic acid ； Coal-to-oil and gas production for energy and chemical industries in Yan’an ； Yushen Coal Chemical is responsible for the construction of coal-based aromatic compounds projects... Besides oil and gas, coal chemical industry has long been an important business segment for Yanchang Petroleum. However, the Yulin coal-to-clean-fuel upgrading demonstration project differs from its earlier coal chemical projects. The project covers an area of 9,954 mu, making it larger than 9 Beijing Universal Studios. Upon completion, it is expected to generate an annual output value of over 60 billion yuan and create employment for more than 20,000 people. To ensure a supply of resources, the project will include the construction of three coal mines in the Yuheng mining area: Wusuhaize No. 1, Xihongdun, and Haicetan. This project integrates three globally pioneering technologies: Sinochem’s next-generation indirect liquefaction technology for synthetic oil, the POE elastomer co-production technology, and the ultra-high molecular weight polyethylene production facility, aiming to take the lead in global coal chemical technology. The key materials produced by this project, such as POE photovoltaic adhesive films and ultra-high molecular weight polyethylene, are expected to break foreign monopolies and raise the domestic production rate of these materials to 95%. In addition, the project is equipped with 13 advanced technological systems, including the world’s largest single set of 9×220,000 cubic meter gasification system. Whether in terms of technology or chemical products, this coal chemical project boasts significant advantages. This also indicates that it will serve as a new benchmark for the advanced and diversified development of the coal chemical industry.