China will build its first long-distance pipeline for dimethyl ether and methanol
Thread Content
Thanks to the abundant resources of dimethyl ether in the western region and the surge in production, China is set to build its first long-distance pipeline for dimethyl ether and methanol in Inner Mongolia, to transport these substances directly to the Bohai Bay. Yesterday, The First Financial Daily learned from officials at the Inner Mongolia Development and Reform Commission that the pipelines for dimethyl ether and methanol are currently in the planning and feasibility study phase. The current main use of dimethyl ether is to be blended with liquefied petroleum gas (hereinafter referred to as “LPG”) and sold as city gas. Most of the production of methanol (the upstream raw material for dimethyl ether) and dimethyl ether in China is concentrated in the northwestern region centered on Inner Mongolia and other northern areas such as Shanxi, while demand is primarily found in the developed coastal regions. Yesterday, a relevant official from the Inner Mongolia Development and Reform Commission told reporters that discussions on pipeline transportation are indeed underway, but the specific route has not yet been determined. Jiang Dalong, general manager of the Marketing Center at Newao Group Energy Supply Chain Co., Ltd., told a reporter from Yicai Daily that the transportation cost per ton-kilometer for dimethyl ether is approximately between 0.5 and 0.9 yuan; if transported via pipelines, the cost might be around 0.2 yuan per ton-kilometer. In 2002, the total production capacity of dimethyl ether across the country was only 31,800 tons, with output of around 20,000 tons; by the end of 2006, the production capacity had exceeded 480,000 tons and output reached 320,000 tons, representing annual growth rates of 97% and 96% respectively. It is estimated that by 2010, China’s production capacity for dimethyl ether will increase by 9.82 million tons, bringing the total production capacity to over 15.8 million tons. Previously, China Coal Energy, **Petrochemicals (market trends, stock forums) and Shenneng Group jointly announced the construction of a 3 million-ton dimethyl ether project in Ordos (market trends, stock forums). Meanwhile, companies such as New Ocean Group also have various methanol and dimethyl ether projects in Inner Mongolia. Tian Chunrong, a senior engineer at Sinopec’s Information Department, said that the selling price of dimethyl ether is significantly lower than that of domestic liquefied gas as well as imported liquefied gas, remaining around 4,000 yuan per ton. The price of methanol is also around 3,000 yuan per ton; thus, it is indeed competitive compared to LPG, whose price is over 6,000 yuan per ton. However, the price of dimethyl ether still needs to drop further. According to Sinopec’s statistics, the domestic civilian and vehicle liquefied gas markets in urban and rural areas can currently provide 2.9 million tons of capacity for blending dimethyl ether, and this capacity is set to increase to 3.3 million tons by 2010. An industry insider pointed out that unless the resources from the western region can be transported to the eastern region via cheap pipeline transportation, dimethyl ether will not be able to demonstrate its competitiveness. This post was last edited by ft2489244 on 2008-4-19 18:24.]
Not bad ~ Some encouragement please~~~~
I suggest changing this LZ post to a discussion thread. The proposal to build long-distance pipelines for dimethyl ether and methanol was put forward at the beginning of last year; however, due to various factors such as the chemical properties of dimethyl ether and methanol (compared to crude oil or natural gas), the areas through which the pipelines would pass, and the policies regarding alcohol-ether fuels, the proposed pipelines remain in the pre-feasibility stage, and it is likely that actual construction will not begin for several years yet.
The first long-distance pipelines for methanol and dimethyl ether will be built. Experts from the regional economic development commission have revealed that the region already has a production capacity of 2 million tons of methanol per year, with an additional production capacity for methanol in the process of development amounting to over 10 million tons. Building long-distance pipelines in Inner Mongolia aims to address the ’bottleneck’ that hinders the development of the chemical industry in this autonomous region and throughout China, namely the transportation issue. Over 90% of Inner Mongolia’s chemical products are sold outside the region and even in international markets; therefore, it is very important to address the issue of product transportation in order to achieve the development goals of the chemical industry by 2010. In particular, hazardous chemicals such as flammable and toxic liquids like methanol and dimethyl ether are even more difficult to transport due to their high level of danger and large volume. Therefore, while making full use of the existing railway and road transport capacity, the relevant departments in the autonomous region are considering the construction of liquid chemical delivery pipelines and dedicated heavy-load routes leading to coastal ports in energy and chemical industry bases, and have included these in the infrastructure development plan. Currently, the preliminary preparation work has already begun. Experts believe that the transportation cost of dimethyl ether is approximately between 0.5 and 0.9 yuan per ton per kilometer; if transported via pipeline, the cost might be around 0.2 yuan per ton per kilometer. It is expected that by 2010, China’s total dimethyl ether production capacity will exceed 15.8 million tons ； Regarding methanol, it is predicted that by 2010, the world demand will be 40 million tons, while the domestic demand will be around 12 million tons. If oil prices remain high, the use of methanol as a fuel alternative will grow rapidly, leading to an **increase in the consumption of fuel methanol. Taking into account its use in the production of olefins, acetic acid, and dimethyl ether, the demand for methanol could reach 20 million tons by 2010. Therefore, if methanol and dimethyl ether are transported from Inner Mongolia to the East China region via pipelines, their economic advantages will be fully demonstrated. This post was last edited by Warm Home on 2008-5-9 18:20.]
Good news: coal chemical industry can be developed vigorously
Regarding the corrosion issue of DME in gas applications, weren’t we talking about it in the previous phase? It seems to have been resolved.
This issue has been under consideration for a long time, but no resolutions have been reached; even the standards for alcohol-ether fuels have not yet been established, and the policies remain unclear. Long-distance pipelines are indeed beneficial, as natural gas can now be transported across the entire country. Some of the practical problems are not purely technical in nature.
The analysis is insightful; transportation indeed restricts the development of Inner Mongolia
As an alternative to new energy sources, dimethyl ether has faced the dilemma of **lack of standards** amid its rapid industrial development. In recent years, the production and construction of dimethyl ether in China have seen a surge. Although dimethyl ether has a wide range of applications and a bright future, it was not until the end of 2007 that it broke free from its status as an unimportant substance. On April 13, 2007, the **NDRC issued product standards for the dimethyl ether industry. On August 21, 2007, the Ministry of Construction issued the \"Standards for Dimethyl Ether Used in Urban Gas.\" These two standards are merely the current industry standards for dimethyl ether; there is still a gap in terms of \"standards\". Currently, dimethyl ether is mainly used as a fuel in combination with liquefied petroleum gas, with the mixing ratio ranging from 15% to 35%. The lack of standardization for such mixtures leads to chaos in the market and numerous safety hazards. Since the calorific value of dimethyl ether is lower than that of liquefied petroleum gas, if too much dimethyl ether is mixed in, the temperature of the gas will fluctuate. Furthermore, when transporting dimethyl ether nowadays, liquefied petroleum gas tankers are generally used, but **relevant authorities stipulate that vehicles used for transporting hazardous materials cannot carry different types of goods or items. Furthermore, **standards** for the use, storage, and transportation of dimethyl ether should also be established as soon as possible, in order to create a comprehensive set of standards for dimethyl ether.
The economic advantages of alcohols and dimethyl ether will be fully demonstrated
Good news: coal chemical industry can be developed vigorously – it has a promising future
Please have experts answer: What is the transportation cost per ton-kilometer for dimethyl ether by rail/road? Is it between 0.5 and 0.9 yuan? Pipelines: It’s probably around 0.2 yuan per ton per kilometer. Sea freight: ? Yuan per ton – I’m really curious :handshake
The shipping price with LPG is also acceptable. Urgently needed :handshake :handshake