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Author/Source: China Coal Chemical Network Date: 2009-4-8 ------------------------------------------------------------------------------- Recently, Academician Chen Junwu of Sinopec Luoyang Engineering Company wrote an article stating that: The development direction of the coal liquefaction industry is to jointly implement coal-to-liquid projects with petroleum refining and petrochemical projects to achieve complementary raw materials, product optimization and blending, and sharing of public systems. The deep processing of residual oil in refineries and direct coal liquefaction to liquefaction can also be combined through coal-to-hydrogen production. According to experts from the Sinopec Petrochemical Science Research Institute, Sinopec has formulated a plan for coal-to-liquids and may adopt a different process route from other domestic coal-to-liquids companies in the future. Sinopec is getting involved in the fields of coal-to-liquids and coal chemicals, and is developing towards the integration of energy and chemicals. As early as the first quarter of 2007, Syntroleum, a company located in Tulsa, Oklahoma, USA, signed an agreement with Sinopec Corp. to transfer the company's Fischer-Tropsch (FT) synthetic oil technology. Sinopec will build a pilot plant in China based on the Synthetic Oil Company's demonstration unit with a daily production capacity of 70 barrels of natural gas to produce synthetic oil and related technologies to jointly promote the demonstration, development and commercialization of this technology. In terms of coal-to-liquids and coal-chemical technologies, Sinopec has carried out industrial trials such as Fischer-Tropsch synthesis and methanol-to-olefins respectively. In addition, Sinopec and Shenhua Group have also established a good relationship in terms of strategic cooperation in coal-to-liquids. Sinopec Chairman Su Shulin has expressed his willingness to form a strategic partner with Shenhua to jointly develop oil alternatives. Sinopec may not only sell the refined oil produced by the Shenhua coal-to-liquids plant, but also participate in the refining of synthetic oil from the coal-to-liquids plant. On March 6, 2009, across the country“ * * ”During the conference, Henan Province * * Signed a framework agreement with China Petrochemical Corporation for the cooperative development of modern coal chemical industry. Henan Province * * Designate Henan Coal and Chemical Industry Group to cooperate with Sinopec to build a modern coal chemical project integrating coal mining and coal chemical industry in northern Henan. Sinopec has begun preparation work for coal resources in Xinjiang. Data from AsiaChem Consulting shows that in 2007, Sinopec registered a 350-square-kilometer coal block in the Junggar Basin in Xinjiang, with estimated reserves of about 15 billion tons, mainly for Sinopec's future coal chemical industry. Sinopec expects to invest about 50 billion yuan in the project. Sources from Sinopec's New Energy Office said that the area is still in the census stage, and the formal launch of coal chemical industry is not expected until 2015. Xinjiang is rich in both oil and coal resources, which will be conducive to the joint implementation of Sinopec's coal-to-liquids and petroleum refining projects. ASIACHEM Consulting believes that starting from coal-to-liquids and coal chemicals to enter the field of coal-based energy and chemicals, it marks that Sinopec will move from a traditional petrochemical enterprise to a comprehensive energy and chemical integrated enterprise.