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The 25th National \"Safety Production Month\" in 2026: Everyone should talk about safety and be able to handle emergencies; identify and address potential risks and hazards. -------------------------------------------------- The raw material gas supply project for the transformation and upgrading of Zhongyuan Dahuahua Group in Henan Province. I. Basic information on the project: The developer is Zhongyuan Dahuahua Group Co., Ltd. based in Henan Province, which is part of the Henan Energy and Chemical Industry Group. The project is located within the existing coal chemical plant area in the Puyang Economic and Technological Development Zone, Henan Province. Site selection for construction: Make full use of the reserved land for existing coal chemical facilities of the enterprise, without any additional land acquisition. The utility systems (central control, circulating water, desalinated water, main pressure reduction station) are all upgraded and reused by making use of the existing facilities within the plant. Construction scale: A new gasification facility will be built to produce 100,000 Nm³/h of high-purity hydrogen purification gas, equipped with 2 water-coal slurry gasifiers. The construction scope covers the entire set of main and auxiliary equipment, including gasification, shift + low-temperature methanol washing for purification, electrically driven air separation, sulfur recovery, coal storage and transportation, as well as sewage and accident buffer tanks. At the same time, the plant’s substations, shift systems, and ethylene glycol flare systems will also be upgraded. Project background: The original urea and melamine production facilities at Zhongyuan Dahuahua have long relied on natural gas supplied by the Zhongyuan oil field. Due to reduced gas supply from the oil field, rising gas prices, and restrictions on supply during the winter heating period, these facilities have frequently faced shortages of gas and had to suspend operations. The project aimed at optimizing the raw material route for fertilizer production, which became operational in November 2025, has already achieved the co-firing of coal-derived gas. This project constitutes the second-phase expansion of the gas supply system; its objective is to completely eliminate reliance on natural gas by adding more coal-to-gas production capacity and thereby improving the flexibility of the raw material supply system. Approval progress: The environmental impact assessment will be made public on April 28, 2026. The environmental impact assessment work is being carried out by Henan Chemical Industry Research Institute Co., Ltd., and the project construction complies with the **access policies for the modern coal chemical industry.
II. Project bidding status (as of the end of May 2026): The funds for the project are to be fully raised by the enterprise itself, and all bidding processes are carried out through the Zhongyuan Cloud Commerce Electronic Bidding Platform. Currently, work is underway on four main phases: engineering design, process package development, site preparation, and environmental impact assessment services. For the engineering design phase, the bidding for the basic and detailed designs was completed in May 2026; China Wuhuan Engineering Co., Ltd. won the bid (with a bid amount of 5.5 million yuan), while Hualu Engineering Technology Co., Ltd. was the alternate winner. The contract stipulates that the winning bidder must complete the design of the entire plant’s foundation and deliver the construction drawings within 120 days after the contract is signed. Tender for the core process package: For the coal-water slurry gasification process package, a second public tender was conducted on May 8. The successful bidder is required to deliver all final process package documents within 60 days after signing the contract, so as to facilitate long-term equipment procurement and the preparation of safety and energy assessments. Low-temperature methanol washing purification process package: A second tender will be conducted during the same period; bidders are required to possess independent intellectual property rights for the process, and must submit a revised version of the process package within 35 days. Tender for site grading work: Bid opening on May 18, announcement of the winning bidder on May 22; Shiyang Construction Group was the winner. Currently, site clearing and earthwork leveling have been completed, meeting the prerequisites for the commencement of civil construction. Tendering for EIA and acceptance services: Concurrently conduct a tendering process for outsourcing EIA services. The winning bidder shall be responsible for the entire process, including the preparation of the EIA report, subsequent environmental acceptance upon project completion, and handling of any changes related to the pollution discharge permit. Follow-up arrangements: Bids for equipment procurement, civil construction and installation, and installation supervision have not yet been launched; tenders will be issued in batches once the process package and basic design are finalized. III. Project Construction Progress: Early stage (current): The site grading work has been completed, and the selection of temporary construction sites as well as geological surveys are in the final stages. The design team has arrived on site to carry out work on the layout of the equipment, the placement of devices, and the planning of pipelines ; The technical documentation for ordering long-cycle equipment is being prepared in accordance with the requirements of the process package. Construction schedule planning: Once the design documents are finalized, work on the civil engineering pile foundations and structures will begin immediately. Subsequently, the delivery and installation of large-scale equipment such as gasification furnaces and air separation units will take place, followed by the laying of pipes for the purification system and joint commissioning tests. The overall construction schedule is being advanced in reverse order, aiming for completion and commissioning in the second half of 2027. Integration: The project will be interconnected with the fertilizer raw material optimization and renovation project, which came online in November 2025; the newly produced raw gas can be directly delivered to the existing pipeline networks of the facilities used for the production of ammonia, urea, ethylene glycol, and melamine.
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