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Summary of 13 new and expanded methanol projects in China in 2018 Author/Source: Huahua Network – Coal Chemicals Date: 2018-04-25 Clicks: 33 ● In 2018, 13 new methanol production units were added in China, resulting in a total capacity of 7.02 million tons ● There were also new methanol plants equipped for downstream olefin production, with a total capacity of 3.6 million tons ● The 2018 Methanol and Emerging Downstream Industries Forum focused on the drivers behind MTO and high-value applications. In 2017, methanol prices in China fluctuated at high levels, with an average annual price of nearly 2,800 yuan per ton, the highest level in almost 4 years. Rising industry profits have spurred an increase in operational rates, resulting in an annual production volume of around 45 million tons, a growth rate of over 7% compared to the previous year. In 2017, China added a total capacity of 4.1 million tons for methanol production. Two large methanol production facilities came online: Zhongtian Hechuang’s facility with a capacity of 1.8 million tons per year, and Hualu Hengsheng’s facility with a capacity of 1 million tons per year. What was the situation regarding new methanol projects and capacity expansions in China in 2018? Yahua Consulting has compiled information on 13 new methanol projects and projects for capacity expansion, analyzing factors such as the increase in production capacity, sources of raw materials, downstream applications, and the estimated start-up dates for these projects. http://img.yf116.cn/image/img/20180425/1453485362845.jpg http://img.yf116.cn/image/img/20180425/1454275366760.jpg Data from Yaha Consulting shows that in 2018, China is expected to see 13 new methanol production projects as well as expansions of existing ones, resulting in an additional production capacity of around 7.02 million tons, thus accelerating the growth of methanol production capacity. In terms of downstream applications for methanol, MTO (methanol to olefins) remains the dominant process, with a total capacity of 3.6 million tons. Among them, methanol and MTO for 2 projects were constructed simultaneously and came online within 2018. Furthermore, it is worth noting that in 2018, 2.5 million tons of methanol production capacity was planned for the manufacture of stable light hydrocarbons (gasoline). These projects were launched before the end of 2014; the annual average price of Brent crude oil in 2014 was $99 per barrel, but it dropped below $60 per barrel by the end of December. Yahua Consulting has learned that these projects will first put methanol production facilities into operation, and then start or build downstream facilities based on market conditions.