Coal-based ethylene glycol accounts for over half of it, with 90% being used in polyesters
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Ethylene glycol, abbreviated as EG and also known as \"glycol,\" is a colorless, odorless liquid with a sweet taste. Its chemical properties are similar to those of ethanol, and it is an important raw material in the organic chemical industry, primarily used in the production of polyester fibers and antifreeze agents. With the commissioning of ethylene glycol production facilities by various companies, China’s production capacity for ethylene glycol has been increasing steadily in recent years; in 2020, China’s output of ethylene glycol reached 8.6301 million tons. The raw materials used for ethylene glycol production in China have become more diversified; in addition to ethylene produced from naphtha cracking, coal-based syngas and methanol are also used. Although the production of ethylene glycol from ethylene remains the main method for its manufacture in our country, its share of the total production capacity is continuously declining. The development of coal-based ethylene glycol is progressing rapidly, which is in line with China’s characteristic of having abundant coal but limited oil and gas resources.
The ethylene glycol production facilities in our country are mainly concentrated in the two major state-owned enterprises, Sinopec and CNPC. In recent years, the entry of foreign and private capital has disrupted the monopoly held by Sinopec and CNPC in China’s ethylene glycol industry, giving rise to a competitive landscape in which Sinopec and CNPC remain the main players, with private joint ventures playing a supplementary role; the production entities are moving toward greater diversification. Unlike the previous approach of small-scale, opportunistic investments, in the construction of new ethylene glycol plants, whether it is state-owned capital, private capital, or foreign capital, all investors have adopted a strategy focused on scale and advanced technology; the annual production capacity of these plants is generally over 200,000 tons, which **enhances the economic efficiency of China’s ethylene glycol production facilities as well as their competitiveness in future market competitions. China’s ethylene glycol production facilities are mainly concentrated in the East China, North China, and Northeast China regions. In the past two years, as plants for producing ethylene glycol using coal or natural gas as raw materials have been built and put into operation in China, the production capacity of ethylene glycol in provinces and regions with abundant coal resources such as Inner Mongolia, Henan, Shanxi, and Xinjiang has seen rapid growth. In the coming years, as a large number of new plants for producing ethylene glycol through coal chemical processes come online, changes in production capacity in these regions will become even more apparent. By then, China’s ethylene glycol production will follow a pattern in which the coal-based route is predominant in the west, while the oil-based route is dominant in the southeast.
The market for ethylene glycol is primarily located in the eastern coastal areas. Since ethylene glycol is considered a hazardous chemical, there are strict restrictions on its transportation by road; there have been numerous accidents on highways resulting from leaks. Therefore, it must be converted into polyester chips to facilitate storage and transportation.
Ethylene glycol works very well as a refrigerant
Which one should have very low consumption and be used for adding chilled water?
More production capacity is set to become available soon. ------------------------------------------- The 1 million-ton per year ethylene glycol production project of Inner Mongolia Jutai New Materials Co., Ltd. is the largest project of its kind in the world that uses the hydroxymethylation process to produce ethylene glycol. In line with the development strategy focused on new materials, new energy sources, and biodegradable products, this project was initiated under the leadership of the Jutai Group, and it employs the internationally advanced hydroxymethylation process using formaldehyde, developed by Davy Company, to produce ethylene glycol. The total investment in the project is 11.7 billion yuan; to date, 8.4 billion yuan has been invested. 95% of the civil engineering work for the main plant structures has been completed, 60% of the installation work is done, and all auxiliary works have been finished. Phase-wise progress has been achieved in the on-site construction. Among them, the power, coal transportation, and desalinated water sections have entered the stage of individual commissioning; the project is advancing rapidly, with official operation scheduled for 2021. It is expected to generate annual sales revenue of 10.6 billion yuan and profits and taxes of 3.66 billion yuan.
The market is already saturated. . . . . .
There are several more companies that are under construction, and the existing ones might be replaced