Tender for environmental impact assessment, safety assessment, and seismic safety assessment projects for CNOOC Fudao’s project to produce 1.2 million tons per year of methanol from CO₂-rich natural gas

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On October 14, CNOOC Chemical Co., Ltd. issued a notice outlining its plans to solicit bids for environmental impact assessment, safety assessment, and seismic safety assessment projects related to Fujima Company’s project aimed at producing 1.2 million tons per year of methanol from CO₂-rich natural gas. Project Overview: Project Name: Fudao Company’s 1.2 million tons per year methanol production project using CO₂-rich natural gas. Location: No. 1, Road 3, Lingang Industrial Park, Dongfang City, Hainan Province, China. CNOOC Fudao Co., Ltd. (hereinafter referred to as Fudao Company) is one of the production bases of CNOOC Chemical Co., Ltd. (hereinafter referred to as CNOOC Chemical), and is located in the Lingang Industrial Park of Dongfang, Hainan Province. Ocean Oil Tomishima Co., Ltd. uses offshore natural gas resources to produce large-grain urea, methanol, and downstream products. Currently, there are four natural gas chemical plants in the Dongfang Lingang Industrial Park in Hainan. They include: the Phase I fertilizer plant (with an annual production capacity of 300,000 tons of synthetic ammonia and 520,000 tons of urea), the Phase II fertilizer plant (with an annual production capacity of 450,000 tons of synthetic ammonia and 800,000 tons of urea), the Phase I methanol plant (with an annual production capacity of 600,000 tons of methanol), and the Phase II methanol plant (with an annual production capacity of 800,000 tons of methanol) ； Rikushima Company benefits from the support of Zhonghai Chemical, which provides a deep-water port with an annual handling capacity of tens of millions of tons (referred to as Hashiro Port) along with various supporting facilities. This gives it advantageous geographical positioning and logistics conditions, allowing the products produced at the facility to be shipped by sea directly to target markets both domestically and internationally. As China Ocean Chemical’s largest production base, Fudao Company is actively participating in the development of Hainan Free Trade Port, driven by the restructuring and transformation of the chemical industry. In line with the group company’s strategy for the development of the South China Sea as well as the development plans of the chemical business unit, Fudao Company relies on the \"Guidelines for Industrial Structure Adjustment\" (2024 edition) issued by the National Development and Reform Commission, as well as the \"Regulations on the Utilization of Natural Gas\" (Order No. 21 issued by the National Development and Reform Commission in June 2024), which stipulate that natural gas with a high carbon dioxide content can be utilized through comprehensive development methods based on its specific characteristics. By using advanced, energy-efficient technologies for converting natural gas rich in CO2 into methanol synthesis gas, and by employing high-CO2 methanol synthesis techniques, Fudao Company is establishing green industrial demonstration facilities for producing methanol from such natural gas. This project is planned to be constructed within the Dongfang Lingang Industrial Park in Hainan Province. Established in June 2011, the Dongfang Lingang Industrial Park became one of the key parks in Hainan’s Free Trade Port in 2022. The total planned area of the park is 39.38 square kilometers (with the development boundary covering 14.72 square kilometers), and approximately 11.05 square kilometers have already been developed. The Haiyu West Route Highway, the Ring Island West Expressway, the Hainan West Ring Line of the Yuehai Railway, and the West Ring High-Speed Railway are all located nearby the park, providing convenient transportation. The park has a coastline that is 23.6 kilometers long, and the coastal waters are rich in oil and gas resources. The project is located to the west of the Phase II fertilizer plant, to the east of the Phase I fertilizer plant; to the north lies the reserved area for the Phase II Dongfang Petrochemical project, and to the south is Erheng Road in the Dongfang Industrial Park. The planned land area is 17.26 hectares. The facility uses rich-in-CO2 natural gas from the South China Sea as raw material, and employs advanced, energy-efficient conversion technologies for such gas to produce methanol, in line with the provision of the **Natural Gas Utilization Industry Policy, which states that natural gas with a high carbon dioxide content can be utilized through comprehensive development strategies based on its specific characteristics. According to the process flow, this project can be divided into three main units: steam conversion, methanol synthesis, and distillation. Process units: The main process includes a natural gas conversion unit, a syngas compression unit, a PSA unit, a methanol synthesis unit, and a distillation unit. Utilities and auxiliary facilities: include the plant’s flares, emergency fire wastewater tanks, raw water treatment station, circulating cooling water station, demineralized water station, recycled water station, main transformer, utility cabinet room, central control room, laboratory, and production management office, among others. Storage and transportation facilities: tanks for methanol intermediate products and finished methanol products.