Sinopec’s Huainan Phase II project kicks off! Accelerate the feasibility study

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Sinopec’s Huainan Phase II project kicks off! Accelerate the progress of feasibility studies. Author/Source: Huahua Net Coal Chemicals. Date: May 16, 2022. Clicks: 13. On May 10, Sinopec Great Wall Energy Chemical Co., Ltd. held a meeting to discuss the plans for the second phase of the Zhongan United Coal Chemicals project via video conference. The meeting heard a report from Zhongan United Coal Industry & Chemical Co., Ltd. on the work related to the second-phase chemical project, approved Zhongan United’s plan to accelerate the preparation of the feasibility study based on the basic plan for the second phase, and provided suggestions on aspects that need to be improved in the preparation of this feasibility study. He Zuoyun, deputy general manager of Great Wall Energy Chemicals, and Zhang Wei and Zhou Lijin, leaders of Zhongan United Coal Chemicals Branch, attended the meeting. The Phase II project of Zhongan Chemical aims to implement the development strategies of Anhui Province and Sinopec, improve the comprehensive utilization level of coal, promote the low-carbon development of the enterprise, expand and lengthen the product chain, and enhance the overall profitability and risk resistance of the coal chemical industry. It is a vital project and one that contributes to the company’s high-quality development. Following numerous discussions and studies conducted earlier with research institutions and engineering companies, on January 6, 2022, at the planning meeting organized by the Group’s Development Planning Department and Great Wall Energy Chemicals, the second phase of the chemical production project was identified as the company’s development direction for the 14th Five-Year Plan period. It was included among this year’s key tasks, and also served as a major focus of negotiation within the Strategic Cooperation Agreement between Anhui Province ** and Sinopec. The meeting agreed that the plan for the second phase of Zhong’an Chemical is well suited to the actual conditions of Zhong’an United, and is in line with **low-carbon industry policies. It was recommended to conduct further comprehensive research on target markets and existing production capabilities, to deepen the discussion of this plan, and to expedite the preparation of the feasibility study. Zhongan United Coal Chemical Co., Ltd. is located in the Anhui (Huainan) Modern Coal Chemical Industry Park. It was established as a joint venture between Sinopec Great Wall Energy Chemical Co., Ltd. and Anhui Wanbei Coal and Electricity Group Company in a 50:50 shareholding ratio. It represents a key project of the strategic cooperation between Anhui Province and Sinopec, as well as Huainan City’s “No. 1 Project”. The company’s registered capital is 8 billion yuan. Zhongan United has a coal chemical subsidiary and a coal mine subsidiary. The total investment for the first phase of this coal chemical integration project is 26.7 billion yuan, of which 20.2 billion yuan is allocated to the coal chemical facilities and 6.5 billion yuan to the coal mines. The project makes use of dry powder gasification, S-MTO, PE, and PP technologies owned by Sinopec, and aims to build facilities for producing 1.7 million tons per year of methanol as well as various converted olefins (350,000 tons per year of linear low-density polyethylene and 350,000 tons per year of polypropylene). Additionally, a coal mine with an annual production capacity of 4 million tons will be constructed as part of this project. The Zhongan United Coal Mine project was officially put into operation in August 2017, while the coal chemical project began trial operations in July 2019, completing the entire production process. This marked the emergence of a large-scale polyolefin production enterprise in Anhui Province, and the project became the key initiative in Huainan’s coal chemical industry park worth hundreds of billions of yuan.