The Phase 3 coal-to-olefins project in Baofeng, Ningxia, has been approved! 1.7 million tons of olefin production capacity will be established in the future!

Thread Content

The Phase 3 coal-to-olefins project in Baofeng, Ningxia, has been approved! 1.7 million tons of olefin production capacity will be established in the future! Author/Source: Yahuac Coal Chemical Industry Date: 2020-02-19 Clicks: 22 Recently, the Development and Reform Commission of Ningxia Autonomous Region announced its approval for Ningxia Baofeng Energy Group Co., Ltd.’s 500,000 tons per year coal-to-olefins project. We have received the document titled \"Request for Approval of Ningxia Baofeng Energy Group Co., Ltd.’s 500,000 tons per year coal-to-olefins project\" (Ning Baoneng Fa [2019] No. 630) submitted by Ningxia Baofeng Energy Group Co., Ltd. After examination, the approval decision regarding this project is as follows: In order to promote the economic and social development of our region as well as the construction of the modern coal chemical industry demonstration zone in the Ningdong area, in accordance with the Administrative License Law, the Regulations on the Approval and Filing of Enterprise Investment Projects, and the Measures for the Approval and Filing of Enterprise Investment Projects, the construction of the 500,000 tons per year coal-to-olefins project by Ningxia Baofeng Energy Group Co., Ltd. is approved. Project code: 2020-640900-25-02-000488. The project will construct a 1.5 million tons per year coal gasification to methanol plant (4 in operation and 2 as backups), a 500,000 tons per year methanol to olefins plant, a 250,000 tons per year ethylene-vinyl acetate copolymer (EVA) plant, a 300,000 tons per year polypropylene plant, along with the associated utility systems and auxiliary facilities. Upon completion and reaching full capacity, the project will primarily have an annual production capacity of 250,000 tons of EVA, or some amount of low-density polyethylene, as well as 300,000 tons of polypropylene; in addition, it will be able to produce by-products such as propane, C4, C5, and sulfur. The coal required for the project is acquired by the project owner through market-based procurement. The project is located in Area A of the Linhe Comprehensive Project Zone in the Ningdong Energy and Chemical Industry Base. The total investment for the project is 1,377,000 million yuan, of which 1,298,201 million yuan is allocated to construction costs, 9,991 million yuan to working capital for the initial phase, and 68,808 million yuan to interest during the construction period. The funding comes from the enterprise’s own resources in the amount of 413.1 million yuan, accounting for 30% of the total investment, with the remaining amount being covered through bank loans and other means.