Signing of the overall design contract for Shaanxi’s 70-billion-yuan coal-to-oil project

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Recently, the signing ceremony for the overall design contract of the follow-up project for the first phase of Shaanxi Future Yulin coal indirect liquefaction (a 4 million tons per year coal-to-oil project) and the project kickoff meeting were held. Nearly 100 people, including the heads of companies such as Shaanxi Future Energy Chemical Co., Ltd., China Global Engineering Co., Ltd., Sinopec Engineering Construction Co., Ltd., Hualu Engineering Technology Co., Ltd., and China Tianchen Engineering Co., Ltd., as well as project team members, attended the signing ceremony. For the projects under Global Engineering’s contracts, the company takes overall responsibility for the entire plant, undertaking the overall engineering design, foundation design, as well as the regional overall planning for the chemical area of the project ； Sinopec Engineering Construction Co., Ltd. (SEI) is responsible for the overall design of the refining area. On November 9, 2017, Yankuang Group and Air Products Corporation signed an investment cooperation agreement regarding the follow-up projects for the first phase of Yulin coal indirect liquefaction at Shaanxi Future Energy Chemical Co., Ltd. Under the agreement, Air Products of the United States plans to invest $3.5 billion (approximately 23 billion yuan) to build a follow-up phase of the project in collaboration with Yankuang Group. Under the agreement, Shaanxi Future Energy Group Co., Ltd., a subsidiary of Yankuang Group, and Air Products plan to establish a joint venture in which Air Products will hold a majority stake. This joint venture will be responsible for building, managing, and operating a complete set of air separation, gasification, and syngas purification systems to supply gas to the Shaanxi Future Energy plant. The follow-up project for the first phase of Shaanxi Future Yulin coal indirect liquefaction (a 4 million tons per year coal-to-oil project) utilizes the large-scale high- and low-temperature Fischer-Tropsch synthesis multiproduct patent technology independently developed by Yankuang Group to build a coal indirect liquefaction facility with a capacity of 4 million tons per year. The project uses coal as raw material to produce petroleum products and chemicals, with an annual production capacity of 4.17 million tons. The construction site is located to the east of the existing 1 million tons per year coal indirect liquefaction demonstration project in Qinhe Town, Yuyang District. The project consumes approximately 20 million tons of coal as raw materials and fuel per year, as well as about 43.5 million tons of water annually. It covers an area of around 15,000 mu, with a total investment estimated at around 69.8 billion yuan. Upon completion, the project will have an annual production capacity of 5 million tons of synthetic products. It will form an industrial cluster centered around the indirect liquefaction project, including industries such as plastics and rubbers, FTO-based specialty chemicals, and textiles. This cluster will complement the existing local industries, address their weaknesses, improve the quality of regional industrial products, reduce production costs, and increase the added value of these products. It is expected to become the largest industrial cluster in China for the recycling of coal-based chemicals, producing ultra-clean oils, plastics, rubbers, and other related products. The main units of the project include: coal gasification, gas purification, air separation, a 2 million tons per year low-temperature Fischer-Tropsch synthesis unit, a 2 million tons per year high-temperature Fischer-Tropsch synthesis unit, as well as downstream refining units for oil products such as a 100,000 tons per year PAO production unit, a 500,000 tons per year ethylene and propylene deep cryogenic separation unit, a 3.3 million tons per year hydrogenation unit, a 2 million tons per year hydroisomerization unit, a 300,000 tons per year aromatization unit for viscosity reduction, an 800,000 tons per year circulating fluidized bed aromatization unit, a 100,000 tons per year alkylation unit, and a 100,000 tons per year MTBE production unit. The project is scheduled to be completed and put into trial operation in 2021.