Gas supply agreement signed for Shaanxi’s 300,000-ton coal-to-ethylene glycol project
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Gas supply agreement signed for Shaanxi’s 300,000-ton coal-to-ethylene glycol project – Coal Chemical Network: Keeping you informed about the latest developments in the coal, electricity, and chemicals industry, striving to provide the simplest possible information platform! Add WeChat 2841314420 for group communication. On February 8, Shanghai Baosteel Gas Co., Ltd. announced that it had signed a gas supply agreement with Shaanxi Coal Group Weihua Binzhou Chemical Co., Ltd. ? Under the agreement, Baosteel Gas will establish an independent legal entity project company, which will invest in the construction and operation of an air separation unit with a capacity of 60,000 m³/h, in order to supply products such as oxygen, nitrogen, and instrument air for its project aimed at producing 300,000 tons of coal-based ethylene glycol per year. The air separation unit is expected to come online in 2019. Shaanxi Coal Group is the leading enterprise in the development and construction of coal-based industries as well as in the energy and chemical sectors in Shaanxi Province. Its subsidiary, WeiHua Group, is a pioneer in the development of modern coal chemical technologies and in the application of new-generation coal gasification techniques in China. The 300,000-ton per year coal-to-ethylene glycol production project carried out by Weihua Binzhou Chemical Construction is one of the two key coal-to-ethylene glycol projects under development in Shaanxi Province. This project utilizes the most advanced technologies and equipment, and the ethylene glycol produced meets the high standards of the industry. This cooperation between Baosteel Gas and Shaanxi Coal Group represents the first time that it has supplied industrial gas products for an advanced, independent large-scale coal-to-ethylene glycol project. The air separation unit to be built will, together with the already operational Shaanxi Baosteel Gas and Shaanxi Clean Energy facilities, create a regional advantage.
Baosteel has also begun to enter the gas products market. It is not clear what air separation technology will be used. As domestic manufacturers gradually enter this market, they will compete with foreign firms, giving customers more choices and reducing gas prices – a win-win situation. Shanxi Gas Turbine has already started gas production; it’s just not clear what the benefits are, but it is generally assumed that they should be stable.
Baosteel began planning to enter the gas products market back in 2012, but it wasn’t until now that these plans have been put into action.