Zhejiang’s 690,000-ton methanol-to-olefins plant may face indefinite shutdown
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According to the latest reports from relevant market agencies, Zhejiang Xingxing’s 690,000-ton methanol-to-olefins (MTO) plant has been shut down on an indefinite basis starting March 3. At the same time, the methanol-to-olefins plants in Zhejiang Fude and Shandong Shenda also have maintenance plans. In addition, the 600,000-ton per year olefins plant of China Coal Mengda, which was originally scheduled to start operations at the end of March, may see its commissioning delayed. Zhejiang Xingxing’s 690,000-ton methanol-to-olefins plant was handed over on January 18, 2015; after passing full-load trial operations in April 2015, it began commercial operation. The project utilizes the methanol-to-olefins (DMTO) technology from the Dalian Institute of Chemical Physics, Chinese Academy of Sciences, as well as Lummus’ olefin separation technology and olefin conversion technology (OCU) from the United States. It was officially established in the Jiaxing Port Area of Zhejiang on August 27, 2010, with a total investment of 3.5 billion yuan. Construction officially began on October 18, 2012, with an ethylene production capacity of 300,000 tons per year and a propylene production capacity of 390,000 tons per year. Zhejiang Xingxing New Energy Technology Co., Ltd. is a petrochemical enterprise controlled by Hangzhou Haoming Investment Co., Ltd., with Zhejiang Jiahua Group Co., Ltd. and other shareholders holding shares in it. (Source: Huahua Net Coal Chemicals)
Does anyone know why the parking is indefinite?
There are no downstream products; propylene is sold directly, resulting in continuous losses.
Isn’t this project about producing polyethylene and polypropylene? How can it be delivered directly?
Downstream there are EO and EG, but no PP. But now they are installing the PP unit.
New coal chemical industries are having a tough time amid low oil prices
Ethylene is sold to the nearby Sanjiang Chemicals for the production of ethylene oxide, right? .
Methanol prices are rising, and coal-based chemical production causes significant pollution; strict controls are in place to limit coal-related pollution. Using methanol alone to produce olefins results in thin profits. Several facilities in the west use coal to produce olefins, and they are operating well, but now companies such as Shenhua have started maintenance work, with a duration of 40 days