Three major coal chemical projects to be established in Yulin, with a total investment of 12.333 billion yuan

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This post was last edited by qy576100527 on June 9, 2017, at 15:02. On June 5, during the centralized signing ceremony for the projects of the Yulin delegation at the 2017 Silk Road Expo and the 21st Western China Investment and Trade Fair, Shaanxi Coal Group signed three projects: one for the rapid pyrolysis of 1.2 million tons of coal dust, one for the hydrogenation of 300,000 tons of coal tar, and one for the comprehensive utilization of 6.6 million tons per year of coal dust. Additionally, a project for the hydrogenation of all fractions of coal tar to produce naphthenic oils was also signed, with a total investment of around 12.333 billion yuan. Yang Zhaoqian, Chairman and Party Secretary of Shaanxi Coal Group, Zhao Futang, Deputy General Manager and Chief Accountant, Dai Zhengshe, Secretary of the Yulin Municipal Party Committee, Yao Jinrong, Director of the Provincial Sports Bureau, and Dai Shifang, Deputy Director of the Provincial Department of Commerce, were among those who attended and signed the document. More than 400 people, including Li Qianglin, chairman of Northern Shaanxi Mining Company, as well as business guests invited by Yulin City, representatives of companies that signed agreements, and relevant officials from various counties and districts, attended the signing ceremony. At the signing ceremony, Li Qianglin, chairman of Shanbei Mining Company, signed an agreement with the people’s government of Yuyang District in Yulin City for the 1.2 million tons per year coal powder rapid pyrolysis project and the 300,000 tons per year coal tar hydrogenation project. The project covers an area of 774 mu, has a construction period of 2 years, and requires an investment of 3 billion yuan. Upon completion, the project will produce 18,400 tons of liquefied gas, 115,200 tons of naphtha, 141,500 tons of diesel, 10,500 tons of shaped asphalt, 723,900 tons of coke, and 2,166 tons of sulfur per year. Expected market benefits: operating revenue of 1,524.83 million yuan, total profit of 265.34 million yuan, and after-tax profit of 199 million yuan. Shenmu Tianyuan Chemical Co., Ltd. signed a contract with the People’s Government of Shenmu County for a project aimed at the comprehensive utilization of coal dust at a capacity of 6.6 million tons per year. The project mainly includes 1 x 600,000 tons/year and 6 x 1 million tons/year coal powder pyrolysis units ； 3x40,000 standard cubic meters per hour gasification unit ； Air separation unit capable of producing 30,000 standard cubic meters per hour of nitrogen and 30,000 standard cubic meters per hour of oxygen ； 3x160 ton/hour coal-fired boiler ； 277,000 tons/year LNG plant ； A 66,500 tons/year LPG plant along with the corresponding auxiliary production facilities. The project construction period is 2.5 years, with an investment of 6.283 billion yuan. Once the project is put into operation, it will produce 4.558 million tons of new-type anthracite per year, 557,360 tons of coal tar, 277,000 tons of LNG, and 66,500 tons of LPG. The expected annual sales revenue will be 3.688 billion yuan, with a total profit of 1.3778 billion yuan, and taxes and fees to be paid amounting to 344.8 million yuan. Shenmu Fuyou Energy Technology Co., Ltd. signed a contract with the People’s Government of Shenmu County for a project to produce naphthenic oils through the hydrogenation of the full fraction of coal tar at a capacity of 500,000 tons per year. The project involves an investment of 3.05 billion yuan. It mainly includes one set of 50,000 NM3 natural gas hydrogen production facility, one set of 500,000 tons per year coal tar full fraction hydrogenation facility, one set of 320,000 tons per year naphthenic oil hydrogenation facility, one set of 200,000 tons per year naphtha reforming facility, as well as the associated utility systems. Completion is expected in June 2019. Once operational, the annual operating revenue is expected to be 3.808 billion yuan, with an annual net profit of 659 million yuan. The total investment return rate will be 39.25%, the internal rate of return on the investment (after tax) will be 27.04%, and the payback period for the investment (after tax) will be 5.9 years. These 3 projects of Shaanxi Coal Group take full advantage of Yulin City’s coal resources, aiming to develop and strengthen the energy and chemical industry as a key sector. They fall within the scope of high-end energy and chemical industries, are in line with relevant policies, and possess great potential for growth. The implementation of these projects will surely accelerate the industrial transformation and upgrading process of Shaanxi Coal Group, making new and greater contributions to driving the economic growth of Shaanxi’s industry and helping it achieve faster development.