Inner Mongolia Datang International Hexigten Coal-to-Natural Gas Co., Ltd.’s 90,000-ton/year tar hydrogenation and benzene extraction project

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In 2026, during the 25th National “Safety Production Month”, everyone should prioritize safety and be capable of responding to emergencies; risks and hidden dangers must be identified and rectified. -------------------------------------------------- I. Basic Overview of the Project 1. Project entity and location Construction entity: Inner Mongolia Datang International Keshiketeng Coal-to-Natural Gas Co., Ltd. (Datang Keqi Coal-to-Natural Gas Company)； Construction site: Within the existing coal-to-natural gas plant area in Darhan Ula Sumu, Keshiketeng Banner, Chifeng City, Inner Mongolia (retrofitting/expansion of existing facilities or construction of new ones, with no additional off-site land required) ； Project alias: 90,000-ton/year Tar 0# Hydrogenation and Benzene Purification Project. 2. Approval and Investment - Group Approval ； The Development and Reform Commission of Keshiketeng Banner has completed the registration of industrial projects ； The soil and water conservation plan and the environmental impact assessment report have been publicly announced as accepted ； - Total investment: approximately 179.85 million yuan; the funds are sourced from the enterprise’s own resources ； - The land area is 48,034.35㎡, with a total construction area of 5,041.13㎡. 3. Construction scale and process plant design: raw material processing capacity of 90,000 tons per year for coal-based tar (0# tar) ； Main process units: pre-distillation unit, hydrotreating unit, extractive distillation unit for benzene recovery, PSA hydrogen production (expansion), raw material/product tank farms, truck loading/unloading station, circulating water system, power distribution room, cabinet room, foam generation station, and other supporting utility facilities ； Core equipment: hydrogenation reactors, multiple distillation columns, recycle/fresh hydrogen compressors, heaters, vapor recovery units, various pumps and storage tanks. 4. The planned EPC duration is 14 months (including the winter downtime period in the north). It is scheduled to be completed and put into operation from October 30, 2025, to December 30, 2026. II. Project bidding situation
1. EPC general contracting bidding (core bidding) – Bidding agent: Beijing Guodian Engineering Bidding Co., Ltd ； In September 2025, a public tender announcement was issued ； - Winning bidder: Sinochem Second Construction Group Co., Ltd. (responsible for the entire process of design, procurement, and construction under a general contracting arrangement). 2. Subsequent tiered subcontracting/procurement tenders (organized by the EPC general contractor): In 2026, various professional subcontracting and equipment procurement activities will continue: - Professional works: Plant steel structure work, civil engineering and concrete works, anti-corrosion and thermal insulation, storage and transportation systems ； - Key equipment internals: reactor internals, internals of various distillation columns ； - Instrumentation equipment: online analyzers, flow meters, samplers, filters, etc ； - Tender for production services (June 2026): A three-year outsourcing project for the operation of a 70,000-ton crude phenol purification unit and a 90,000-ton coal tar hydrogenation plant, covering the entire process from commissioning and startup to daily operations. 3. Tenders for procedural services will be issued in March 2026: construction project approval, quality/safety supervision, and agency services for civil defense-related procedures. III. Project construction progress (as of June 2026) 1. Preliminary procedures: registration, soil and water conservation measures, and environmental impact assessment public announcements have been completed ； The procedures related to construction permits are being advanced simultaneously ； 2. On-site phase: Civil construction, prefabrication and installation of steel structures, and equipment ordering have all commenced ； Negotiations for various professional subcontracts and material purchases have been completed, and the relevant materials have been delivered ； 3. Progress on key milestones: Purchases for the tower and reactor internals have been completed ； The supply of concrete for civil construction and the steel structure construction are proceeding in an orderly manner ； 4. Future plans: Within 2026, equipment installation, pipeline welding, and instrumentation and electrical construction will be completed. A three-checks-and-four-determinations process and a joint commissioning test will be carried out, with the goal of starting material input and production by the end of the year. IV. Significance of the Project
1. Efficient utilization of resources and extension of the coal-to-natural gas industrial chain
This project makes use of coal tar generated as a by-product in the coal-to-natural gas production process at the plant. Through hydrogenation combined with extractive distillation, it extracts high-purity basic aromatic hydrocarbons such as benzene, toluene, and xylene. This transforms the previous situation where coal tar was merely sold as a low-value fuel, enabling the “graded utilization and full exploitation” of coal resources, thereby significantly increasing the added value of these by-products. 2. Ensuring the domestic supply of aromatic chemical raw materials to bolster energy security. China is rich in coal but lacks oil and natural gas; thus, its production of aromatics relies heavily on petroleum-based processes. This project establishes a stable supply channel for coal-based aromatic hydrocarbons. The benzene produced is an essential raw material for the synthetic resin, chemical fiber, pharmaceutical, and coating industries. By reducing reliance on petroleum refining processes, this project serves as a model for ensuring the security of energy and chemical raw materials. 3. Reduce costs and increase efficiency to boost the overall profitability of the enterprise, by making use of the hydrogen produced as a by-product of existing coal-to-natural gas facilities, as well as existing utility systems and storage and transportation infrastructure, thereby minimizing the need for new investments in related facilities ； High-value aromatic products generate significant additional profits compared to the direct sale of tar, thereby enhancing the overall resilience of the Datang Keqi coal-to-natural gas project against market risks. 4. Promote the green and low-carbon transformation of the coal chemical industry by adopting clean processes such as hydrogenation refining and extractive distillation, and improving facilities for oil and gas recovery as well as wastewater pretreatment in order to reduce pollutant emissions ； The deep processing of tar helps to avoid the pollution caused by extensive burning, enables the resourceful and harmless treatment of coal chemical by-products, and is in line with Inner Mongolia’s industrial policies for the clean and efficient use of coal. 5. Regional industrial and employment-driven projects are implemented in the Keshiketeng Coal Chemical Industry Park, thereby improving the local integrated industry structure that combines coal, gas, oil, and chemicals. These projects foster the development of supporting industries such as equipment maintenance, logistics, and technical services, help to secure jobs in related fields, and promote the high-quality development of the energy industry in border areas.