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Baofeng Energy’s 2.2 million tons per year methanol production project comes online; Sinochem Sixth Construction takes the lead in delivering a high-quality project. Author/Source: Sinochem News Network Date: June 9, 2020 Clicks: 4 On May 29, Baofeng Energy Group Co., Ltd. in Ningxia successfully completed the initial combined test run of its project for producing methanol from coke gas at a rate of 2.2 million tons per year, resulting in the production of qualified methanol. A reporter from China Chemical Industry News learned on June 6 from the site that the relevant units were operating smoothly. Baofeng Energy stated that this marks the full commissioning of its fundraising project launched through its initial public offering, namely the project for producing 600,000 tons per year of olefins via coke gasification. The estimated total investment for this project is 15.279 billion yuan, and it mainly comprises two parts: the upstream phase for the production of methanol via coking gasification at a capacity of 2.2 million tons per year, and the downstream phase for the production of polyolefins from methanol at a capacity of 600,000 tons per year. The latter of these was officially put into operation in October 2019. Baofeng Energy stated in a interview with reporters that the successful trial operation of this project for producing methanol from coke gasification marks the full commissioning of this fund-raised project, which will have a positive impact on the company’s future development. First, the scale advantage is more prominent. It is understood that once this project comes online, Baofeng Energy will have a production capacity of 1.2 million tons per year for polyolefins and 4 million tons per year for methanol. Second, maintain low costs in the industry. The methanol, which is used as raw material for polyolefin production, will be fully self-sufficient, further reducing the cost per unit of product and enhancing core competitiveness. Third, further advance the high-end and differentiated nature of the product structure. The 300,000 tons per year high-density polyethylene plant in the polyolefins project is capable of producing high-end products such as bimodal polyethylene (with an import dependence of over 50%) and metallocene polyethylene (with an import dependence of over 90%), thereby enabling import substitution. Once the projects funded by the raise are fully operational, production plans will be arranged reasonably based on market demand. It is reported that this project integrates advanced domestic and international process technologies and equipment; the technologies used are mature and reliable, and most of them have already been successfully applied at the Baofeng Energy Circular Economy Industrial Base. In terms of equipment, it uses the world’s largest methanol synthesis tower with an annual production capacity of 2.2 million tons, as well as the largest domestic air separation unit with a capacity of 105,000 standard cubic meters per hour, setting multiple industry firsts. Among them, domestic \"heavy-duty\" equipment such as an air separation unit with a capacity of 105,000 standard cubic meters per hour and a methanol synthesis plant with an annual production capacity of 2.2 million tons were put into operation for the first time. The integrated application of advanced device technologies also confers on the project comprehensive advantages such as low material consumption, high synthesis efficiency, and low operating costs, thereby achieving simultaneous increases in both economic benefits through high efficiency and low emissions, as well as social benefits. Baofeng Energy also told reporters that once the project is operational, it is expected to create thousands of additional jobs for the projects funded through fundraising, while also generating nearly 10,000 more job opportunities across various stages of the industrial chain. At the same time, a comprehensive training system will be used to cultivate more high-quality professionals for enterprises and the industry. It is reported that once the first phase of the project is operating at full capacity and the projects funded in the second phase are successfully put into operation, Baofeng Energy will become one of the largest coal-to-olefins producers in China in terms of scale. In 2020, Baofeng Energy will also commence construction of the first unit of the third-phase olefin project, with an annual production capacity of 500,000 tons of olefins. Another update: The 2.2 million tons per year methanol project of Baofeng Energy, constructed by Sinochem Sixth Construction Company, was successfully put into operation on schedule despite the impact of the COVID-19 pandemic, creating a miracle in the history of coal chemical construction. ”On June 6, during an interview at the site of Baofeng Energy’s 2.2 million tons per year coal gasification to methanol project, which had just completed testing, Hu Erfu, chairman and general manager of China National Chemical Engineering Corporation Sixth Construction Co., Ltd., told the reporters. According to Xiao Yi, the chief engineer of Sinochem Sixth Construction, the contract value for the 2.2 million tons per year coke gasification to methanol project is 1.56 billion yuan, setting a new record for the highest contract value ever handled by Sinochem Sixth Construction. The project includes gasification, purification, sulfur recovery, synthesis, air separation, plant-wide utility systems, and power boilers, all of which were completed by Sinochem Sixth Construction. “The 2.2 million tons per year methanol project not only set a new record for the contract value of a single project undertaken by Sinochem Sixth Construction, but also marked a new chapter in the cooperation between the two parties. ”Hu Erfu said that for a project of such scale, entrusting its entire execution to a single chemical construction company is also unprecedented in the history of China National Chemical Engineering Corporation. As a central state-owned enterprise based in Xiang, Sinochem 6 has the confidence and capability to take on major responsibilities on its own. After the project was launched, Sinochem Sixth Construction quickly established a command post, with Hu Erfu serving as its commander in chief; multiple units under the company, including its Third Branch, Sixth Branch, Infrastructure Company, and Third Installation Company, participated in the construction work. On July 20, 2018, the project officially commenced. After 22 months of hard work, it was successfully built and tested. The reporter learned on site that, aside from some remaining tasks related to corrosion prevention and insulation, the civil work, installation, and electrical and instrumentation work have been largely completed according to the planned schedule. During the project construction, Sinochem Sixth Construction demonstrated the spirit of a \"titanic army\" as well as the craftsmanship spirit, earning high praise from the client. In addition to its strong technical capabilities, excellent management skills, robust talent pool, and great team spirit, Sinochem Sixth Construction also demonstrates outstanding emergency response capabilities. After the outbreak of the pandemic, the project progress was severely affected. The company immediately activated its emergency plan; despite the fact that most of its management staff were unable to return to work, it managed to resume operations swiftly and miraculously, while still maintaining the basic pace of construction. On March 12, after 117 managers returned to the construction sites via the first batch of large-scale inter-provincial \"point-to-point\" chartered transport services in Xiangyang City, the project progress accelerated further. “During the pandemic prevention and control period, the Baofeng Energy methanol project employed a total of 3,700 workers who returned to work, the highest figure among companies under China National Chemical Engineering Group Corporation. ”Hu Erfu said that thanks to Sinochem Sixth Construction’s proper handling of emergencies, the project schedule was effectively ensured. It is reported that Sinochem Sixth Construction has been cooperating with Baofeng Energy since 2007. Over the past 13 years, 15 engineering projects have been completed, with a total contract value exceeding 2.56 billion yuan; all of these projects were put into operation successfully on the first attempt. Its construction capabilities, management level, and construction quality have been highly recognized by the owner.