China Global has been pre-selected to undertake the general contracting of light hydrocarbon cracking technology for Shenhua Yulin coal project

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On January 7, the list of candidates shortlisted for the public bidding related to the licensing of light hydrocarbon cracking technology, the preparation of process packages, training, preliminary design, and technical services for the Shenhua Yulin Circular Economy Coal Comprehensive Utilization Project in Yulin Chemical Industry was made public. The first winning bidder is China Global Engineering Co., Ltd. The project is located in the North Area of Qingshui Industrial Park, Yushen Industrial Zone, Yulin City, Shaanxi Province. The investor is China Shenhua Coal-to-Oil Chemical Co., Ltd., with a total investment of 79.836 billion yuan; the construction period will be from 2025 to 2027. The construction scope includes five main projects: coal liquefaction, coal gasification, co-refining of oil and alcohol along with downstream processing, MTO and downstream processing, and coal-based biodegradable materials, along with the supporting auxiliary facilities. The coal liquefaction section is a new addition, involving the establishment of a coal direct liquefaction production line with an annual capacity of 2.16 million tons. This includes a coal liquefaction unit with an annual capacity of 4.8 million tons (based on the amount of raw coking coal processed), a stabilization unit with an annual capacity of 8 million tons (based on the amount of raw material processed), and a hydrogenation reforming unit with an annual capacity of 2 million tons (also based on the amount of raw material processed) ； The coal gasification section maintains the original methanol production capacity of 2.1 million tons per year, while increasing the capacity of coal gasification and air separation in line with the requirements of the coal liquefaction section; this includes units such as 4×100,000 m3/h air separation systems, 930,000 m3/h coal gasification units, shift conversion and acid gas removal systems, 400,000 m3/h hydrogen purification units, and a methanol synthesis unit with a capacity of 2.1 million tons per year ； The MTO and downstream processing units will have their production capacities reduced by half compared to the original levels; accordingly, the downstream production scales and product portfolios will be adjusted. This includes reducing the capacity of the MTO unit from 1.5 million tons per year to 750,000 tons per year, increasing the capacity of the polypropylene unit from 200,000 tons per year to 360,000 tons per year. The polyethylene unit will shift from producing low-density polyethylene (350,000 tons per year) to high-density polyethylene (340,000 tons per year). The production of ethylene oxide and propylene oxide derivatives will be discontinued, while the production of EPDM and ultra-high molecular weight polyethylene will be increased ； The olefin co-refining and downstream processing sections are new additions; specifically, high-value-added processing units for naphtha derived from coal liquefaction have been added, including units for the methanol synthesis and cracking of 2 million tons per year of naphtha ； The coal-based biodegradable materials section represents new content; that is, processing and production facilities for coal-based biodegradable materials have been added, utilizing methane and n-butane produced as by-products in the plant, including 50,000 t/a of polybutylene carbonate (PBC) and 160,000 t/a of polybutylene succinate (PBS), among others. On September 12, 2025, the kick-off meeting for the Energy Group’s Yulin Circular Economy Coal Comprehensive Utilization Project was held in the Yushen Industrial Zone. The product development strategy for this project focuses on coal-based specialty fuels and coal-based biodegradable materials as key products, with coal direct liquefaction plants as the core element; it aims to enhance energy security and promote the development of strategic emerging industries.