Shanghai Wu Zheng Joint Venture Holds Commencement Ceremony for Foundation Treatment Works of 300,000 Tons/Year Ethylene Glycol Project

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Shanghai Wu Zheng Joint Venture Holds Commencement Ceremony for Foundation Treatment Works of 300,000 Tons/Year Ethylene Glycol Project Author/Source: Shanghai Wu Zheng Engineering Date: 2019-07-16 Clicks: 16 On July 10, the joint venture company of Shanghai Wu Zheng Engineering Technology Co., Ltd. (Shaanxi Huabin Zhengkai) held a commencement ceremony for the foundation treatment works of the 300,000 tons/year ethylene glycol project at the project site. Mi Xiaolong, the company’s chairman, Liu Shunfu, the general manager, members of the management team, as well as members of the management team of Shaanxi Runzhong Clean Energy Co., Ltd., along with the heads of Shengli Oilfield Xinxing Engineering Supervision and Consulting Co., Ltd., Shaanxi Longhai Xinchuang Foundation Engineering Co., Ltd., and Bin County Construction and Installation Company, attended the ceremony. The opening ceremony was presided over by Comrade Chang Cheng, the company’s deputy general manager. The 300,000 tons per year ethylene glycol project of the joint venture company of Shanghai Wu Zheng Engineering Technology Co., Ltd. (Shaanxi Hua Bin Zheng Kai) is located on the reserved site within the facility of Shaanxi Runzhong Clean Energy Co., Ltd. It utilizes Shanghai Wu Zheng Engineering Technology Co., Ltd.’s second-generation medium-high pressure carbonylation ethylene glycol synthesis technology (STEG-Ⅱ), and was designed by China Global Engineering Design Institute. The project is constructed under an EPC turnkey contract, with a construction period of 18 months; completion of the mechanical installations is scheduled for December 2020, at which point the site will be ready for operation. The total planned investment for the project is 1.971 billion yuan. Upon completion and operation, the after-tax return on investment is 20.43%, the after-tax payback period is 6.05 years (including the construction period), and the after-tax net present value is approximately 800 million yuan. It is reported that Shaanxi Huabin Zhengkai New Energy Technology Co., Ltd. was established through joint investment by Shaanxi Coal and Chemical Energy Co., Ltd., Shanghai Wu Zheng Engineering Technology Co., Ltd., and Kaifeng Dongjing Energy Technology Co., Ltd. Ethylene glycol with an annual production capacity of 300,000 tons is produced through technical upgrades to the 600,000 tons per year methanol production facility at Shaanxi Coal and Chemical Energy Co., Ltd. This technical improvement project was registered on October 31, 2017. On July 7, 2018, a joint general contract was signed by Shanghai Wu Zheng Engineering Technology Co., Ltd., the Beijing branch of China Global Engineering Co., Ltd., Sinochem Second Construction Group Co., Ltd., and Shaanxi Huabin Zhengkai New Energy Technology Co., Ltd.; the project is scheduled to begin operations by the end of 2019. The \"Process Technology Package for an EG Production Plant Using a Medium-High Pressure Carbonylation Process with a Capacity of 300,000 tons per year\" prepared by Shanghai Wu Zheng Engineering Technology Co., Ltd., fully meets the requirements specified in SPMP-STD-EM2001, the standards issued by Sinopec regarding the content of process design packages for petrochemical plants. This technology package features advanced processes, low material and energy consumption, and its implementation is of great significance for the development of synthetic gas-based EG production in China. The review concluded that, after modifications and improvements, this process package can serve as a basis for the subsequent engineering design. According to the calculations of China Global, the cost per ton of ethylene glycol produced as a result of this technical upgrade is only about 1,000 yuan higher than the cost per ton of methanol produced by the existing plant; in other words, the cost of ethylene glycol is around 2,600 yuan per ton.