【Information on Haichuan Chemical Project】Xinjiang is advancing two major coal chemical projects in Zhundong with a total investment of 41.4 billion yuan

Xinjiang Shanneng Chemical Co., Ltd.’s 800,000 tons per year coal-to-olefins project in Wucaiwan, Zhundong: The construction site is located in the Modern Coal Chemical Industry Demonstration Zone of the Zhundong Economic and Technological Development Zone, in the reserved area at the northern part of the park. The developer is Xinjiang Shanneng Chemical Co., Ltd. The total land area covered by the project is 270.18 hectares. The total number of employees required for the operation of this plant is 1,500. The total investment required for this project amounts to 2,026,181 million yuan, of which 1,882,033 million yuan is allocated to construction costs, while 130,741.99 million yuan is intended for environmental protection measures. In terms of production capacity, the project uses coal as raw material to produce methanol; this methanol is then processed through MTO units and olefin separation processes to yield polymeric-grade ethylene and propylene. These polymeric-grade hydrocarbons are further used in PP and PE polymerization processes to produce polyolefin products. The project also includes facilities for producing 2.2 million tons per year of methanol (including air separation, gasification, conversion, and purification processes), 800,000 tons per year of coal-to-olefins products (including olefin separation), 500,000 tons per year of polypropylene, and 400,000 tons per year of polyethylene. In addition to its main products of PP and PE, the plant also produces by-products such as sulfur, fuel oil, heavy C4, and C5+.

Coal (methanol) to olefins project: total investment of 41.4 billion yuan; two major coal chemical projects in Xinjiang are being advanced. Author: Hua Xiaobei; Source: Coal Chemical Industry Information Network; Views: 520; Update date: June 20, 2023. On the morning of June 14, the Ecology and Environment Bureau of Changji Prefecture in Xinjiang Autonomous Region organized a special meeting to advance the two coal-to-olefins projects in the Zhundong Economic and Technological Development Zone, with a view to accelerating the environmental impact assessment processes for the 800,000-ton/year coal-to-olefins project undertaken by Xinjiang Shanneng Chemical Co., Ltd. and the similar project carried out by Xinjiang Dongming Plastics Co., Ltd. At the meeting, Shanneng Chemical and Dongfang Hope each presented an update on the progress of the environmental impact assessment procedures for the 800,000 tons per year coal-to-olefins project, as well as the changes made to those procedures. At present, the environmental impact assessment report for the Dongfang Hope coal-to-olefins project has been revised and submitted once again to the Evaluation Center of the Ministry of Ecology and Environment for review ； There are still aspects that need to be revised and improved in the environmental impact assessment for Shanneng Chemical’s coal-based olefins project; the revisions are expected to be completed by June 20 ； The Xinjiang Chemical Industry Institute reported on the progress of preparing and submitting the environmental impact assessment reports for two coal-to-olefins projects. The Environmental Development Center of the Ministry of Ecology and Environment reported on the progress made in preparing the Environmental Impact Assessment Report for the territorial spatial planning of the Zhundong Economic and Technological Development Zone. Currently, the planning environmental impact assessment is carrying out work such as short-term and long-term air quality forecasting, with the completion of the main drafting phase expected by the end of June. The meeting noted that the two coal-to-olefins projects with an annual production capacity of 800,000 tons each, invested in and built by Shandong Energy Group and Dongfang Hope Group in the Zhundong Economic and Technological Development Zone, are both key projects of the autonomous region. Since 2021, the regional leaders have made six visits to the Ministry of Ecology and Environment to discuss the environmental impact assessment procedures for the two coal-based olefin projects. The regional ecology and environment bureau has repeatedly urged the project developers and the agencies responsible for conducting the environmental impact assessments to make revisions to these reports. It has also sent four reminder letters to the environmental protection bureau of the Zhundong Economic and Technological Development Zone, urging the zone’s management committee to accelerate the preparation and submission of the territorial planning and environmental impact assessment documents for Zhundong, so as to facilitate the timely submission of the relevant documents to the Ministry of Ecology and Environment for approval. The meeting required that the Zhundong Economic and Technological Development Zone prioritize the two coal-based olefin projects as its key tasks at present, strictly implement the responsibility system led by the top official, focus on the set goals and objectives, and strengthen the implementation of relevant work. It also ordered the agencies responsible for preparing the territorial spatial planning and environmental impact assessments to complete the preparation and submission of the \"Environmental Impact Assessment Report for the Territorial Spatial Planning of the Zhundong Economic and Technological Development Zone\" by June 20, 2023. Xinjiang Shanneng Chemical Co., Ltd. and Xinjiang Dongming Plastics Co., Ltd. shall complete the revision and submission of the environmental impact assessment reports for the two coal-to-olefins projects by June 20, 2023. All units must fulfill their respective roles and responsibilities, take proactive actions, cooperate closely, and work together to create a cohesive effort in order to ensure that the projects progress in an effective, orderly, and efficient manner. We must concentrate our efforts to overcome difficulties, innovate solutions to problems, and go all out to complete tasks such as the preparation of environmental impact assessments for the territorial spatial planning in Zhundong, as well as the revision and submission of environmental impact assessments for various projects. At the same time, active efforts are being made to establish contact with the Evaluation Center of the Ministry of Ecology and Environment, to improve communication and reporting, with the aim of securing the greatest possible support from this ministry and thus accelerating the process of submitting environmental impact assessments for the two projects. Xinjiang Shanneng Chemical Co., Ltd.’s 800,000 tons per year coal-to-olefins project in Wucaiwan, Zhundong: The construction site is located in the Modern Coal Chemical Industry Demonstration Zone of the Zhundong Economic and Technological Development Zone, in the reserved area at the northern part of the park. The developer is Xinjiang Shanneng Chemical Co., Ltd. The total land area covered by the project is 270.18 hectares. The total number of employees required for the operation of this plant is 1,500. The total investment required for this project amounts to 2,026,181 million yuan, of which 1,882,033 million yuan is allocated to construction costs, while 130,741.99 million yuan is intended for environmental protection measures. In terms of production capacity, the project uses coal as raw material to produce methanol; this methanol is then processed through MTO units and olefin separation processes to yield polymeric-grade ethylene and propylene. These polymeric-grade hydrocarbons are further used in PP and PE polymerization processes to produce polyolefin products. The project also includes facilities for producing 2.2 million tons per year of methanol (including air separation, gasification, conversion, and purification processes), 800,000 tons per year of coal-to-olefins products (including olefin separation), 500,000 tons per year of polypropylene, and 400,000 tons per year of polyethylene. In addition to its main products of PP and PE, the plant also produces by-products such as sulfur, fuel oil, heavy C4, and C5+. Xinjiang Dongming Plastic Co., Ltd.’s project for an annual production capacity of 800,000 tons of coal-based olefins: Location of construction: Modern Coal Chemical Industry Demonstration Zone, Zhundong Economic and Technological Development Zone, Xinjiang. Land area required: Approximately 186.4 square meters. Scale of construction: Methanol is produced using coal as raw material; thereafter, through MTO units and olefin separation processes, polymeric-grade ethylene and propylene are generated. Some of these polymeric-grade ethylene and propylene are used in PP and PE polymerization processes to produce polyolefin products, while another portion is used in the production of EPDM rubber. The facility includes systems for producing 220×10^4 tons per year of methanol (after purification), including air separation, gasification, conversion, and purification processes; 80×10^4 tons per year of coal-based olefins (including olefin separation processes); 400,000 tons per year of polypropylene; and 400,000 tons per year of polyethylene. In addition to its main products of PP, PE, and EPDM, the facility also produces by-products such as sulfur, liquefied petroleum gas, and heavy C4+. Investment and construction plan: The total investment amounts to 2,114,489 million yuan (including 399,240 million dollars in foreign currency), of which the amount allocated to construction is 1,962,519 million yuan (including 399,240 million dollars in foreign currency). The interest on loans during the construction period amounts to 1,146,080 million yuan, while the working capital required is 373,620 million yuan. The planned construction period for the project is 48 months, with commencement scheduled for August 2022 and completion by August 2024. Project engineering components: The project components mainly include the main structure, auxiliary works, utility systems, storage and transportation facilities, environmental protection measures, and supporting projects. The main components of the project include: gasification unit, shift unit, low-temperature methanol washing unit, sulfur recovery unit, methanol synthesis unit, methanol to olefins unit, olefin separation unit, polyethylene plant, polypropylene plant, ethylene propylene diene monomer plant, and water electrolysis unit. Auxiliary facilities include air separation units, raw coal pre-drying units, flare systems, fire protection systems, maintenance facilities, offices and laboratories, as well as telecommunications systems.