EPC Tender for the Methanol-to-Olefins Unit of Xinjiang Shanneng Chemical’s 800,000-ton coal-to-olefins project in Zhundong

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On July 14, an open tender (second tender announcement) was issued for the EPC general contracting of the methanol-to-olefins unit (MTO, olefin separation, butene-1, and steam cracking) for Xinjiang Shanneng Chemical Co., Ltd.’s 800,000 tons per year coal-to-olefins project in Wucaiwan, Zhundong. Project Overview: The 800,000 tons per year coal-to-olefins project of Xinjiang Shanneng Chemical Co., Ltd. in Wucaiwan, Zhundong is located in the Huoshao Mountain Industrial Park within the Wucaiwan mining area of the Zhundong Economic and Technological Development Zone. The project uses coal as raw material; through gasification, purification, and synthesis, MTO-grade methanol is produced. MTO technology is then employed to manufacture polymeric-grade ethylene and propylene monomers, which are further processed via polymerization to produce high-density polyethylene, polypropylene products, and other by-products. The construction scope includes air separation units, gasification units, purification units (shift conversion, low-temperature methanol washing and cryogenic treatment, CCUS, sulfur recovery), methanol synthesis units, methanol-to-olefins units (MTO, olefin separation, steam cracking, butene-1 and other units), polyethylene plants, polypropylene plants, hydrogen production facilities via water electrolysis, as well as the associated utility systems and auxiliary facilities. The annual designed operating time for this project is 8,000 hours, with an operational flexibility of 60% to 110%. On July 11, the list of candidates shortlisted for the foundation design services related to the hydrogen production facility using water electrolysis in Xinjiang Shanneng Chemical Co., Ltd.’s 800,000-ton-per-year coal-to-olefins project in Zhundong Wucuiwan was made public. The top candidate for this contract is China Wuhuan Engineering Co., Ltd. According to the previous tender documents, the total capacity of the hydrogen production facility using water electrolysis for this project is 120,000 Nm3/h, with construction taking place in five phases. The first phase, involving a hydrogen production facility with a capacity of 24,000 Nm3/h, will be built and put into operation simultaneously with the 800,000-ton-per-year coal-to-olefins project in Zhundong Wucuiwan. The scope of this design covers the simultaneous design of Phase 5 projects. It is reported that the original plan for this project called for the installation of 12 units of 1000 Nm3/h electrolytic water hydrogen production systems in the first year, with an additional 12 units of such systems to be added each year. By the tenth year, a total of 10 sets of 120 units of 1000 Nm3/h electrolytic water hydrogen production systems were to be in place. However, the current bidding process involves five phases, with each phase covering 24,000 Nm3/h of production capacity. The project commenced on February 23, 2025, and the tendering for design services for various phases has been carried out successively: China Tianchen Engineering Co., Ltd. was awarded the contract for the overall project management, general technical services, foundation design, and some of the detailed designs. China Five Rings Engineering Co., Ltd. won the bid for the design of the purification units (low-temperature methanol washing, refrigeration, CCUS, sulfur recovery) and the foundation design for the methanol synthesis unit in this project. China Tianchen Engineering Co., Ltd. won the bid for the foundation design of the air separation, gasification, and shift units for this project. Daqing Petrochemical Engineering Co., Ltd. won the bid for the foundation design of the polypropylene plant in this project. Hangyang Group won the bid for the air separation technology, process packages, and complete sets of equipment for this project. CNPC Jilin Chemical Engineering Co., Ltd. won the bid for the foundation design of the high-density polyethylene plant in this project. Zhuangxin Wanfeng won the bid for the methanol synthesis technology and process package for this project.