The top 20 producers of methanol in China in 2020 have been revealed!

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The top 20 producers of methanol in China in 2020 have been revealed! On April 28, 2021, the China Methanol Industry Conference was held in Guiyang, Guizhou. The China Nitrogen Fertilizer Industry Association honored the top 20 companies in terms of methanol production across the country in 2020. **20 companies, including Energy Investment Group Co., Ltd., are on the list. **Energy Investment Group Co., Ltd., Shanxi Jincheng Smokeless Coal Mining Industry Group Co., Ltd., Shaanxi Yanchang Petroleum (Group) Co., Ltd., Zhongtian Hechuang Energy Co., Ltd., Yankuang Group Co., Ltd., Shaanxi Coal and Chemical Industry Group Co., Ltd., China National Coal Energy Corporation, SNOW GROUP CO., LTD., Henan Energy and Chemical Industry Group Co., Ltd., Ningxia Baofeng Energy Group Co., Ltd., CNOOC Chemical Co., Ltd., Shanghai Huayi (Group) Company, Datang Inner Mongolia Duolun Coal Chemical Co., Ltd., Sinopec Group Co., Ltd., Jiutai Group Co., Ltd., Xinjiang Guanghui New Energy Co., Ltd., Shaanxi Changqing Energy and Chemical Co., Ltd., Chongqing Kabele Chemical Co., Ltd., Nanjing Chengzhi Clean Energy Co., Ltd., Sichuan Lutianhua Co., Ltd. During the 13th Five-Year Plan period, China’s methanol industry achieved remarkable development results that caught the world’s attention; its production capacity, output, and consumption all increased significantly, keeping it in the leading position worldwide – making it a true global leader in methanol production. At present, the world is undergoing profound changes unseen in a century; the international environment is complex, with contradictions and interests intertwined, and there is considerable uncertainty regarding future developments. Gu Zongqin, president of the China Nitrogen Fertilizer Industry Association, said at the meeting that China’s economy is in a critical period of transforming its development model, optimizing its economic structure, and shifting its sources of growth; the methanol market has promising prospects and strong potential for further development. Gu Zongqin believes that the main characteristics of the global methanol market are: a large production capacity, sustained rapid growth, and active trade among different regions. According to ICIS statistics, global methanol production capacity in 2020 was approximately 150 million tons per year, with production amounting to around 108 million tons; the average annual growth rate from 2011 to 2020 was 7.2%. Asia is the largest methanol market in the world, accounting for 66% of global methanol supply and 78% of global demand. Due to imbalances in supply between regions, global methanol trade is very active. In 2020, the global methanol trade volume reached 29.825 million tons. Northeast Asia is the largest region for methanol imports, with imports amounting to 17.71 million tons, accounting for 59.4% of global methanol imports ； Next is Europe, with import volumes of 6.222 million tons, accounting for 20.9% of global methanol imports. The Middle East is the largest region for methanol exports, with exports amounting to 13.821 million tons, accounting for 46.3% of global methanol exports. Followed by Central and South America, which have exports of 6.161 million tons, representing 20.7% of global methanol exports. As the world’s largest region for methanol imports, Northeast Asia obtains its methanol mainly from the Middle East, the Asia-Pacific region, Central and South America, and the United States, which account for 55.7%, 18.1%, 14.7%, and 10.3% of total imports respectively. The growth in methanol production capacity abroad in 2022 came mainly from the United States, Trinidad, Russia, Uzbekistan, and Iran. If all projects come online as scheduled, global methanol production capacity will increase by 8.85 million tons per year. Iran saw the greatest increase in capacity, at 4.95 million tons per year, accounting for 56% of the total increase. The main factors influencing methanol demand are the development pace of methanol-to-olefins in China and the use of methanol as a fuel globally. Against the backdrop of low oil prices, the growth prospects for both are slowing down. Mike Nash, vice president at IHS Markit, said at the 38th World Methanol Conference that global methanol demand is expected to grow at an average annual rate of 2.8% over the next 10 years, which is slower than the world’s GDP growth rate of 3.2% per year. Regarding the domestic methanol situation, Gu Zongqin believes that the market presents both opportunities and challenges. Methanol is a basic chemical closely related to the national economy, and economic growth inevitably drives consumption of methanol. The greatest advantage of China’s methanol industry lies in its large potential for market growth. Gu Zongqin said that in the newly released \"Catalogue for Industrial Structure Adjustment,\" polyolefin-based new materials are classified as projects that are encouraged for development; breakthroughs in related innovative technologies will significantly enhance the added value and competitiveness of the industrial chain. Currently, the domestic production coverage rate for ethylene is 52%, while that for propylene is 85%. “By the end of the 14th Five-Year Plan period, it is expected to reach: 70% for ethylene and 99% for propylene. Ethylene will increase by 14.6 million tons, while propylene will increase by 16.9 million tons. Based on the current share of coal at around 23%, ethylene produced from coal is expected to increase by 3.35 million tons, while propylene production is set to rise by 3.88 million tons. Therefore, coal-derived olefins in our country will still be in a period of development and growth. At the same time, **the implementation of energy and resource security strategies also provides room for the development of methanol fuel. “The 14th Five-Year Plan outlines that, in implementing the strategy for energy and resource security, it is necessary to rely on domestic resources, address weaknesses, ensure diversified supply sources, strengthen reserves, improve the system for production, supply, storage, and distribution, and enhance the ability to provide a steady and continuous supply of energy as well as to manage related risks. China’s efforts in the field of methanol fuel provide an effective approach for energy substitution. Recently, 5 models from Geely Automobile have received the National VI emission approval from the Ministry of Industry and Information Technology, laying the foundation for the further promotion of methanol-powered vehicles. The feasibility study on methanol as marine fuel, led by the Water Science Institute of the Ministry of Transport, has also made promising progress. Gu Zongqin believes that in the long term, if renewable methanol technology proves to be reliable and economically viable, it will become a green, low-carbon, and recyclable source of energy. It represents one of the effective ways to ensure energy security, reduce carbon emissions, and achieve carbon neutrality. Gu Zongqin pointed out that while seeing opportunities, one should also be aware of the challenges. First, the international political and economic environment is complex and volatile. The international situation is characterized by increasing instability and uncertainty; trends such as trade protectionism, unilateralism, and anti-globalization are on the rise. Events akin to \"black swans\" and \"gray rhinos\" occur frequently, and the impact of COVID-19 has been widespread and profound. The stability of the world economy is facing unprecedented challenges. The global value chain is also undergoing significant adjustments and reorganization, as new approaches to global governance are being explored. Second, the impact of the international energy market is inevitable. From the perspective of the industrial chain, methanol is not only an important chemical raw material but also has energy properties; it is closely related to products derived from crude oil, such as olefins, methanol fuel, and dimethyl ether ； From the perspective of production costs, international natural gas prices are closely linked to crude oil prices; as the global market becomes more integrated, international methanol prices also become interconnected with those in the domestic market. Therefore, fluctuations in crude oil prices have always been closely linked to the methanol market, directly or indirectly affecting changes in China’s imports of methanol. We are currently in a period of profound changes in the global energy supply and demand landscape, which will inevitably affect China’s methanol market as well. According to the predictions of most energy agencies or experts, the oil market is not looking promising in the coming period; the supply in the international oil market remains ample. In the absence of abnormal factors such as wars, oil prices are likely to remain stable around 50-70 dollars per barrel. Therefore, during the 14th Five-Year Plan period, coal-based methanol will remain at a competitive disadvantage. Third, imported methanol will remain at high levels or this will become the norm. In recent years, as countries rich in natural gas resources such as Iran and the United States have continued to commission methanol production facilities, overseas production capacity has been expanding. In the coming years, several more facilities are planned to come online abroad, resulting in an increase in international methanol supply; the low cost of natural gas in these producing regions gives them a significant advantage. As the world’s largest consumer of methanol, our country is an important target market for international methanol sales, with the whole world focusing on us. The trend of external supply flowing into our market is unlikely to change in the short term, and the volume of imported methanol will remain high. Fourth, the growing demand for green and low-carbon transformation makes China’s methanol industry, which relies on coal as its main raw material, face greater pressure in terms of clean production, pollution control, and especially carbon emission reduction. Gu Zongqin believes that the most important thing is **the recent setting of the overall goals to reach peak carbon emissions by 2030 and achieve carbon neutrality by 2060**. “During the 14th Five-Year Plan period, the system of dual control over total energy consumption and its intensity will be improved, with a focus on regulating the consumption of fossil fuels. In the future, the extensive growth model that relies on high energy consumption and environmental pollution will be replaced. Regulatory systems and market mechanisms related to emission rights, energy usage rights, water usage rights, and carbon emission rights will be further improved, enabling the industry to actively explore ways to integrate renewable energies such as solar, wind, and biomass energy with existing industries.