Total investment exceeds 300 billion yuan! Review of domestic coal-to-olefins projects under construction

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2026 is the starting year of the 15th Five-Year Plan, and the construction of coal-to-olefins projects is entering a period of intensive advancement. According to incomplete statistics, the total investment in coal-to-olefins projects under construction in China currently exceeds 300 billion yuan, including more than a dozen key projects such as Sinopec Great Wall Energy Chemical Dalu Project, Xinjiang Shanneng Chemical Zhundong Wucaiwan Project, and Rongsheng Green Coal Chemistry Integration Project. In terms of project progress, 2026 will see several key milestones: the second phase of the China Coal Yulin project will begin trial operations in the third quarter, Rongxin Chemical’s 800,000 tons per year production facility is scheduled to go into full operation in December, and Sinopec’s Dalu project is expected to start construction in August. The industry is experiencing a new wave of construction activity. The following is a detailed summary of the project: Sinopec Great Wall Energy Chemical Dalu Coal-to-Olefins Upgrade Demonstration Project. The investor for this project is Sinopec Great Wall Energy Chemical (Inner Mongolia) Co., Ltd., with a total investment amount of 22.067 billion yuan. Sinopec Nanjing Engineering and Sinopec Engineering Construction Company are slated to take on the role of general contractors for this project. The site is located in the Dalu Industrial Park in Jungeer Banner, Ordos, Inner Mongolia. The project’s production capacity will be 2.26 million tons per year of methanol and 900,000 tons per year of polyolefins. The environmental impact assessment was submitted in January 2026; construction is scheduled to begin in August of the same year, with completion and operation expected by August 2029. Xinjiang Shanneng Chemical’s 800,000 tons per year coal-to-olefins project in Wucuiwan, Zhundong: The investor for this project is Xinjiang Shanneng Chemical Co., Ltd., with a total investment amount of 20.858 billion yuan. The EPC contract for the methanol synthesis unit is currently under bidding process. The project is located in the Modern Coal Chemical Industry Demonstration Zone of the Zhundong Economic and Technological Development Zone in Xinjiang. Its capacity will be 2.2 million tons per year of methanol and 800,000 tons per year of olefins. The EPC bidding will start in February 2026, construction is scheduled to begin within that same year, with completion expected by July 2027. The second phase of the China Coal Yulin Coal Deep Processing Base project is funded by China Coal Shaanxi Yulin Energy and Chemical Co., Ltd. The total investment amount is around 20 billion yuan. The general contractors for this project are China Global Engineering and Sinopec Nanjing Engineering. The project is located in the Yuheng Industrial Park in Yulin, Shaanxi. Its production capacity will be 2.2 million tons per year of methanol and 900,000 tons per year of polyolefins. Completion of the construction is scheduled for June 2026, trial operations will begin in the third quarter, and 70% of the planned capacity will be achieved by the end of the year. The China Coal Pingshu Coal-based Olefins Integrated Project is undertaken by China Coal Pingshu Group Co., Ltd., with a total investment of around 18 billion yuan. The general contractors for this project are China Global Engineering and Donghua Technology. The project is located in Pinglu District, Shuozhou, Shanxi, and its production capacity will be 2.2 million tons per year of methanol and 800,000 tons per year of polyolefins. Construction will begin in 2026, with work on the green hydrogen integration system and methanol synthesis units proceeding simultaneously; trials are scheduled to take place in the third quarter of 2027. Rongsheng Green Coal Chemical Integration Project (Coal-to-Olefins Segment): The investor in this project is Rongsheng Energy Technology (Inner Mongolia) Co., Ltd., with joint investment from Rongsheng Group, Manshi Group, and Zhungeer Banner Guoxing Group. The total investment amount is approximately 160 billion yuan, of which 31.4 billion yuan is allocated to the first phase. The project is located in the Western Industrial Zone of Dali Industrial Park, Zhungeer Banner, Ordos, Inner Mongolia. Preparatory work and construction of the first phase will commence in 2026, with operations starting in June 2029. Guoneng Baotou Coal-to-Olefins Upgrade Demonstration Project: The investor for this project is Guoneng Baotou Coal Chemical Co., Ltd., with a total investment amount of 17.15 billion yuan. The project is located in the Jiuyuan Industrial Park in Baotou City, Inner Mongolia. Its production capacity will be 2 million tons per year of methanol and 750,000 tons per year of polyolefins. Equipment installation will continue in 2026, with the goal of starting operations by the end of that year. Rongxin Chemical’s 800,000 tons per year coal-based olefins project: This project is undertaken by Rongxin Chemical Co., Ltd., with a total investment of 9.83 billion yuan. The general contractor for the project is Sinopec Guangzhou Engineering. The project is located in the Dalate Economic Development Zone in Ordos, Inner Mongolia. Its production capacity will be 800,000 tons per year of olefins, 400,000 tons per year of polyethylene, and 400,000 tons per year of polypropylene. Equipment installation is scheduled to be completed by 2026, with full operation set to begin in December. Ningxia Baofeng Energy’s Phase 4 Olefins Project: The investor for this project is Ningxia Baofeng Energy Group Co., Ltd., with a total investment amount of 20.5 billion yuan. The project is located in the Ningdong Industrial Park in Lingwu City, Ningxia, and its capacity is 500,000 tons per year of coal-based olefins. Construction will continue in 2026, with efforts focused on installing the necessary equipment and carrying out related construction work. Xinjiang Dongming Plastics’ 800,000 tons per year coal-based olefins project: This project is undertaken by Dongfang Hope Group Xinjiang Dongming Plastics Co., Ltd., with a total investment of 18.967 billion yuan. It is located in the Modern Coal Chemical Industry Demonstration Zone of the Zhundong Economic and Technological Development Zone in Xinjiang. The project’s production capacity is 800,000 tons per year of coal-based olefins, and it is scheduled to be completed and put into operation in April 2026. Zhongtian Hechuang’s pilot project for producing olefins via the one-step process: This pilot project is funded by Zhongtian Hechuang Energy Co., Ltd., with a total investment of 50 million yuan. It is carried out in collaboration between Zhongtian Hechuang and the Department of Chemical Engineering at Tsinghua University. The project is located in Wushen Banner, Ordos, Inner Mongolia, and its production capacity is 1,500 tons of olefins per year. Construction will begin in March 2026, with hot-commissioning to take place in June.