Latest Update on the Progress of Coal Chemical Projects (06.12)

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This post was last edited by yinkuilin6868 on 2016-6-12 at 13:41. The second phase of the Shenning 1 million-ton olefins project is set to begin trial operations in October. As reported on June 8 at the mobilization meeting for the “100-day intensive effort” initiative for Shenhua Ningmei Group’s coal-to-oil project, the second phase of the olefins project, which is considered a key project in the autonomous region, will complete all its construction work by September 30, 2016. Trial operations are planned to start in October, thus completing the project 8 months ahead of schedule. It is understood that the second phase of the olefins production unit in Shenhua Ningmei’s coal-to-oil project is one of the key initiatives aimed at extending the coal-to-oil chemical industry chain and increasing the added value of products. This project uses coal-to-oil products as well as by-products of coal-to-olefins processing, such as naphtha and LPG, as raw materials; advanced cracking processes are employed to produce ethylene and propylene. As a result, it is capable of producing 580,000 tons of polypropylene, 430,000 tons of polyethylene, 64,000 tons of butadiene, 59,000 tons of mixed benzene, and 130,000 tons of synthetic ammonia per year. Construction of the project began in September 2014, with a total investment of 12.981 billion yuan. It was planned to achieve partial completion by April 30, 2017, and to start operational testing with material feeding on June 30, thereby entering commercial operation. At present, the 110 kV substation for the Phase II olefin project was put into operation on April 22, 2016, and some of the equipment units have entered the \"three inspections and four fixations\" phase, with commissioning to take place subsequently. 91% of the equipment for procurement has arrived, 80% of the pipes have arrived, and other materials are arriving gradually ； The civil construction has been completed; 86% of the equipment installation is done, 41% of the piping installation is complete, and the electrical and instrumentation installation is in progress. This project will be completed and put into operation simultaneously with the project for the indirect liquefaction of 4 million tons of coal per year. Construction of utility systems for Sino Salt Red Square ethylene glycol project begins On May 30, the groundbreaking ceremony was held for the construction of the utility system facilities for the 300,000-ton/year syngas-to-ethylene glycol project in the second phase of the Sino Salt Hefei Chemical Industry Base, a project undertaken by Sinochem Sixth Construction Company. The project is located in the Hefei Circular Economy Demonstration Park in Anhui Province. The scope of work undertaken by the branch company includes: the construction of the entire plant’s external pipe racks, three industrial circulating water stations, a storage area for 300,000 tons/year of ethylene glycol finished products, the plant-wide water supply and drainage systems, loading facilities for trains and trucks, a foam station, and the construction of equipment foundations for flare systems, among other tasks. The completion date was August 30, 2017. The coal-to-methanol project of Xinjiang Xinye Energy began trial production. On June 6, the air ignition of the gasification unit in Xinyie Energy’s methanol project was successful, and oxygen supply was halted at 13:00, marking the successful completion of a key milestone for this unit and enabling the project to enter the trial production phase ahead of schedule. The factory site for the 200,000 tons per year fine chemical production project of 1,4-butanediol undertaken by Xinjiang Xinye Energy Chemical Co., Ltd. is located in the Eastern Industrial Zone of the Wujiaqu City Industrial Park in the Sixth Division. The total investment in this project amounts to 750 million yuan, and it includes a methanol production unit, a tar processing unit, a 1,4-butanediol production unit, a 100,000 tons per year methanol-to-aromatics production unit, as well as auxiliary facilities and utility systems. Initially, the project planned to build a 1,4-butanediol plant and a methanol-to-aromatics plant separately; later, it was decided to rebuild both plants as a single unit, while increasing the methanol production capacity from 200,000 tons per year to 500,000 tons per year in order to achieve self-sufficiency for the project. Upon completion of the project, the main products will include 500,000 tons per year of methanol, 200,000 tons per year of 1,4-butanediol, 100,000 tons per year of mixed aromatics, and 192,000 tons per year of liquefied natural gas. Progress on the Shenhua Baotou Coal-to-Olefins Upgrade Demonstration Project: As of June 6, 2016, the approval procedures for this project (Document No. Nei Jing Xin Tou Gui 221) and its planning documents (Document No. Ba Guo Hua Di Zi 150201200900010) have been completed. The site selection report and preliminary land approval have also been finalized. The social stability risk assessment was reviewed and approved on April 15, and the relevant documents are now being submitted to the Autonomous Region Development and Reform Commission for further review. Following the meeting on advancing key projects in April, the feasibility study report has been approved by the group company. The water resources assessment and water rights conversion plans have also been completed. On May 11, the autonomous region organized experts from the Water Resources Department to conduct a review and evaluation. Currently, revisions are being made in accordance with the experts’ suggestions; once completed, the documents will be submitted to the Yellow River Conservancy Commission ； On May 7th and 8th, an expert review meeting on environmental impact assessment was held in Qingdao. After the experts submitted their comments, revisions were made, and the revised documents were then sent to the Environmental Protection Department’s Review Center for further evaluation. The monthly sales volume of polyolefins produced by Yanchang China Coal Yulin Energy Chemical Company exceeded 100,000 tons for the first time. In May 2016, the company sold 100,900 tons of polyolefin products, generating revenue of 952 million yuan; this marked the first time that its monthly production and sales volume surpassed 100,000 tons. As of May 31, 2016, the company’s DMTO unit had been in operation for 324 consecutive days, the PP2 unit for 323 consecutive days, and the methanol unit for 284 consecutive days – all setting the longest operation records since their commissioning. Commissioning of DMO unit for Sino Salt Hongsi Fang’s syngas-to-ethylene glycol project On May 26, the construction and installation work for the DMO unit of Sino Salt Hongsi Fang’s 300,000-ton/year syngas-to-ethylene glycol project at its Hefei chemical complex was inaugurated. Xia Xuanfang, Deputy General Manager of Zhongyan Anhui Hong Sifang Co., Ltd.; Gao Junling, Deputy Director of the Technology Development Center; Wang Xiaohua, Project Manager for ethylene glycol; Hu Jiawen, Director of Donghua Engineering Technology Supervision Company; He Ao, Project Manager of Sinochem No.7 Construction Company; and all members of the project team attended the commencement ceremony. Sinochem 7th Construction is primarily responsible for this project: the construction of buildings and structures within the site, steel structure installation, equipment installation, auxiliary machinery installation, pipeline installation, installation of instrumentation and automatic control systems, electrical installations, as well as the manufacturing and installation of nine custom-made pieces of equipment. The total contract value is 100 million RMB. Signing of 15 million tons per year petrochemical integration project in the Middle East Gulf region in Hebei On May 30, a project for oil refining and the production of downstream chemical products with an annual capacity of 15 million tons was officially signed in Caofeidian District, Tangshan City. This project is being developed through a partnership between the Middle East Gulf Investment Group, Huatong Investment Holding Co., Ltd., Saudi Aramco, and SABIC, and it is now in its substantive implementation phase. The large-scale integrated refining and petrochemical project in the Middle East Gulf is expected to require a total investment of $6 billion. It covers an area of approximately 5,150 mu, with a refining capacity of 15 million tons per year, and will gradually be equipped with PX and PTA production facilities. The project primarily uses Saudi light crude oil, with crude from other regions used as a supplement; it mainly produces high-purity petroleum products, as well as bulk commodities such as ethylene, propylene, aromatics, and butenes, along with downstream products of high added value. The 300,000-ton per year coal-to-ethylene glycol project of Shaanxi Yulin Energy Group has been approved for registration. According to a report from June 2, the Development and Reform Commission of Yulin City, Shaanxi Province, issued the \"Notice from the Development and Reform Commission of Yulin City regarding the registration of Shaanxi Yulin Energy Group Co., Ltd.’s project for the comprehensive utilization of resources by producing 300,000 tons of ethylene glycol along with high-value chemicals\" (Yuzheng Fa Gai Fa [2016] No. 267). Thus, the project aimed at cleaning up coal at Guojiatan in Shaanxi Yulin Energy Group and producing 300,000 tons of ethylene glycol along with high-value chemicals has been officially approved for registration. The construction site is located in the **Liang Industrial Cluster** in Yuyang District, Yulin City, as planned. This new coal chemical project uses coal as raw material, and through coal pyrolysis technology and coal water slurry gasification technology, it produces clean energy chemical products such as ethylene glycol, upgraded coal, LNG, coal tar hydrogenation products, DMMn (polymethoxydimethyl ether), and MTA (light aromatic hydrocarbons), as well as high-end fine chemicals. It is capable of processing 5.42 million tons of raw coal per year, with an expected overall energy conversion efficiency of 68.62%. Once completed, the project will create a clustering effect together with other coal mines, coal-to-aromatics, and coal-to-oil projects in Yulin City. Review of the process package for the ethylene glycol plant in Yanchang Petroleum’s associated gas recycling project On April 28, a review meeting for the process package of the ethylene glycol plant as part of Yanchang Petroleum’s associated gas recycling project was held in Xi’an. The plant is designed to have an annual production capacity of 100,000 tons; it will utilize the syngas-to-ethylene glycol technology provided by Shanghai Pujing Chemical. Commissioning of the plant is expected by the end of 2017. In the project for the recycling of associated gas resources in the Yanchang Oilfield, the technologies for converting natural gas into acetylene, methanol into formaldehyde, poly**furan, 1,4-butanediol, and ethylene glycol, as well as PSA technology, were subject to process package evaluations in 2016. Of these, aside from ethylene glycol and PSA, the process packages for the other four technologies were introduced from abroad. Yanchang Petroleum is accelerating the advancement of its project for the recycling of associated gas from oil fields. The chemical water treatment unit for Yitai Chemical’s 1.2 million-ton fine chemicals production project came online on May 29. The unit, constructed by a fourth-party company, is part of Yitai Chemical Co., Ltd. in Inner Mongolia’s 1.2 million-ton annual fine chemicals production project, and it is capable of producing high-quality second-stage reverse osmosis purified water. The project is located in the Jintai Fine Chemical Industry Park within the Duguitala Industrial Park, Hangjin Banner, Ordos City, Inner Mongolia Autonomous Region. With a total investment of 19.8 billion yuan, it has been included in Inner Mongolia Autonomous Region’s \"12th Five-Year Plan\" for demonstration projects in the deep processing of coal. Company Four undertook the construction and installation work for the chemical water treatment equipment in this project. Since the project began construction in September 2014, the project team overcame difficulties such as the limited available construction time in Inner Mongolia and the tight construction site space. By reversing the schedule and focusing on key tasks in stages, they worked hard for 21 months to complete the construction tasks safely and to high standards, thus laying the foundation for the smooth commencement of operations. SABIC and Shenhua Ningxia Coal Sign Agreement for Coal-to-Olefins Project: On June 1, SABIC announced that it has officially signed an agreement with Shenhua Ningxia Coal Industry Group to jointly develop coal-to-olefins and high-value-added downstream projects in Ningxia. SABIC says the project will lead to a more diversified source of raw materials for its products. The estimated investment for this cooperation project is 27 billion yuan. From the perspective of China’s domestic industrial structure, there is a relative shortage of high-end products in the field of advanced chemical materials and fine chemicals at the downstream stage. Therefore, Shenhua Ningmei plans to focus on the development of fine chemicals as an important strategy for further optimizing the industrial structure and promoting industrial upgrading in the coming period, with the aim of producing differentiated, high-end chemical products with high added value. This led to international cooperation with Saudi Basic Industries Corporation to build an MTO and fine chemicals project. The butanol and methanol recovery unit of Shaanxi Chemical Co., Ltd., part of Shaanxi Coal and Chemical Group, was successfully commissioned on May 20; it is currently operating stably. The butanol and methanol recovery unit is a key energy-saving technical improvement project for Shaanxi Chemical Industry Company. Preparations for construction began in March 2015, with the main goal of using technological upgrades to distill and purify methanol and butanol from the alcohol-containing waste liquid with a concentration of 74%-84% generated during the production process at the Shaanxi Chemical BDO plant, so as to enable its recovery and reuse. It is estimated that 576 tons of methanol and 864 tons of butanol can be recovered each month. Agreement signed for 300,000-ton coal-based aromatics project in Inner Mongolia: Recently, Guoneng Xinxing New Energy Group Co., Ltd. and Dunan Holding Group signed a cooperation agreement in Beijing to jointly establish Inner Mongolia Guoneng Jinshi Chemical Co., Ltd., with the plan to invest in the Tengger Economic and Technological Development Zone in Inner Mongolia to build an aromatics production facility with an annual capacity of 300,000 tons. Feng Yuzhen, Deputy Secretary of the Alxa League Party Committee and League Head, Wang Guangming, General Manager of Guoneng Natural Gas, Yao Xinyi, Chairman of Dunan Holding Group, and other relevant officials attended the signing ceremony. Inner Mongolia Guoneng Jinshi Chemical Co., Ltd. was jointly established by Guoneng and Dun’an. The total investment in the company’s aromatics project amounts to 4,324,790,000 yuan. Utilizing coal tar as raw material, the project involves the construction of a 300,000-ton-per-year aromatics production facility using hydrocracking technology. Construction is scheduled to commence in mid-July 2016, following the completion of basic infrastructure such as “seven utilities and one leveled site” and upon obtaining the necessary construction permit. The construction period will last two years. Upon completion, the project is expected to generate an annual output value of 1.968 billion yuan. Investment agreement for 4.1 billion yuan coal-to-hydrogen project signed in Dongying, Shandong On May 26, 2016, Wanhua Mingshi Hydrogen Industry Co., Ltd. signed an investment agreement with the Management Committee of Dongying Port Economic Development Zone in Dongying City, Shandong Province, to invest 4.1 billion yuan in building a coal-to-hydrogen project there. The project is constructed in phases; the investment for Phase 1 is approximately 2.2 billion yuan. The construction scope includes a gasification unit with a capacity of 20*20,000 standard cubic meters of syngas per hour, a facility for producing methanol from waste gases with an annual capacity of 2*50,000 tons, and an air separation unit with a total oxygen production capacity of 170,000 standard cubic meters per hour. Wanhua Akashi Hydrogen Industry Co., Ltd. was established jointly by Akashi Innovation Investment Group Co., Ltd., Wanhua Industrial Group Co., Ltd., Xianglong Enterprise Group Co., Ltd., and Yantai Huachuang Investment Center (General Partnership). Successful individual testing of primary and backup fans in Zhongtian Hechuang’s MTO unit On May 19, the two 6,300-kilowatt primary and backup fans in Unit 2 of the MTO facility at the Zhongtian Hechuang project in Inner Mongolia, constructed by Sinopec Fourth Construction Company, were successfully tested individually. The project is located in Ordos, Inner Mongolia. It utilizes GE’s coal-water slurry gasification technology and SMTO technology, and will be constructed in two phases. Phase 1 mainly involves the construction of two coal mines and a methanol plant with an annual capacity of 3.6 million tons ； Phase 2 will mainly construct 2×1.8 million tons per year of methanol-to-olefins capacity, 670,000 tons per year of polyethylene production capacity, and 700,000 tons per year of polypropylene production capacity. Ignition of the first boiler in Yitai’s 1.2 million tons/year fine chemicals project On May 30, the first boiler in Yitai’s 1.2 million tons/year fine chemicals demonstration project was ignited. The utility works for the project have largely been completed. The installation work in the main processing area is in its final stages. Lighting the boiler will allow for purging of the subsequent steam system. Approximately two months after this steam purging, the commissioning of the major units will commence. Currently, everything is proceeding as scheduled; the boiler is also undergoing sectional trial runs as part of the final adjustments prior to ignition. Project commissioning schedule — Power reception at the main substation: March 1, 2016 (completed) ； Power supply for water supply project: March 1 (completed) ； Delivery of instrument air from the air compressor station: March 25 (completed) ； Production of qualified desalinated water: April 20 (completed) ； As of April 30, the project had seen a total investment of 13.4 billion yuan, with an overall progress rate of 87%. The Ministry of Environmental Protection officially launched the environmental impact assessment process for a project to produce 800,000 tons of coal-based polyolefins in Inner Mongolia. On May 31, the Ministry issued a statement stating that, in accordance with the relevant regulations regarding the approval process for environmental impact assessments of construction projects, it intends to review the environmental impact assessment documents for the project jointly developed by China Power Investment and Total, which aims to produce 800,000 tons of coal-based polyolefins per year. To ensure the seriousness and fairness of the review process, the basic information regarding the environmental impact assessment document to be reviewed is being made public. The public display period is from May 31, 2016, to June 6, 2016 (5 working days). Notice of the right to a hearing: In accordance with the Administrative License Law of the People’s Republic of China, applicants and interested parties may submit an application for a hearing within five days from the date of publication. Contact number: 010-66556414. Location of the project: Dali Industrial Park, Zhungeer Banner, Ordos City, Inner Mongolia Autonomous Region. The project makes use of local coal resources and employs technologies such as pressurized coal gasification, methanol synthesis, methanol-to-olefins conversion, and olefin polymerization to produce products such as polyethylene and polypropylene at a capacity of 800,000 tons per year. The construction contents mainly include: (1) Main production facilities: 14 sets of production units, including an air separation unit, a gasification unit, a methanol synthesis unit, a methanol-to-olefins unit, a polyethylene plant, a polypropylene plant, and a sulfur recovery unit. (2) Auxiliary projects: thermal power plants (overall gasification combined cycle process), water supply systems, storage and transportation systems (coal warehouses, product storage areas, silos), etc. (3) Environmental protection projects: wastewater treatment systems, recycled water systems, exhaust gas treatment facilities, flares, etc. The total investment in the project is 23.857 billion yuan, of which 960 million yuan is allocated to environmental protection measures, accounting for 4.02% of the total investment. Environmental impact assessment process for Yitai’s 2 million tons per year indirect coal-to-oil project underway. On May 31, the **Ministry of Environmental Protection issued a statement stating that, in accordance with the relevant regulations regarding the approval process for environmental impact assessments of construction projects, it plans to review the environmental impact assessment documents for Yitai Coal-to-Oil Co., Ltd.’s demonstration project for indirect coal liquefaction with a capacity of 2 million tons per year in Inner Mongolia. To ensure the seriousness and fairness of the review process, the basic information regarding the environmental impact assessment document to be reviewed is being made public. The public display period is from May 31, 2016, to June 6, 2016 (5 working days). Notice of the right to a hearing: In accordance with the Administrative License Law of the People’s Republic of China, applicants and interested parties may submit an application for a hearing within five days from the date of publication. Contact number: 010-66556414. The project is located in the Dalu Industrial Park, Zhungeer Banner, Ordos City, Inner Mongolia Autonomous Region. It aims to utilize local coal resources to produce 2 million tons of coal-to-oil per year. The construction components include: (1) Main production facilities: air separation units, gasification units, purification units, oil synthesis units, as well as units for oil processing and exhaust gas treatment. (2) Auxiliary systems: heating boilers (equipped with waste heat power generation units), circulating water, demineralized water and feedwater systems, as well as storage and transportation systems. (3) Environmental protection projects: sewage treatment plants, reclaimed water treatment plants, brine treatment systems, evaporation crystallization units, flare systems, accident ponds, etc. (4) Supporting projects: Liulin Tan water supply project, industrial park waste dump, and hazardous waste disposal center. The total investment for the project is 29.342 billion yuan, of which the amount invested in environmental protection measures amounts to 2,963,640,000 yuan, accounting for 10.1% of the total investment. Comprehensive maintenance work has commenced on the boilers of the thermoelectric plant at Zhongtian Hechuang. Recently, the Fifth Construction Company of Sinopec Refining & Chemical Engineering Group has started the maintenance work on Boilers No. 1 and No. 2 of the Zhongtian Hechuang thermoelectric plant. Boiler No. 1 of the Zhongtian Hechuang thermoelectric unit was put into operation on November 7, 2015, while Boiler No. 2 and its associated facilities were put into operation on March 25, 2016. The purpose of this shutdown for maintenance is to address the remaining issues arising from the design changes, as well as to install 37 new 26*45 valves in the boiler; each of these valves weighs over 7 tons. There are a total of 77 items that need to be taken care of during this maintenance process. Full-scale trial operation of Qinghai metal magnesium integration project commenced Recently, Qinghai Salt Lake Industry Co., Ltd. held a mobilization meeting to mark the completion of the construction of the Qinghai Salt Lake metal magnesium integration project and to initiate the full-scale trial operation phase. To date, the soda ash and coking units of the project are in the trial production phase, while the other units are scheduled to begin trial operation in the second half of 2016. The company is making preparations for these trial operations as well as optimizing the related plans. From May 18 to 20, project 330KV high-voltage substation achieved successful power reception for the first time. The successful live operation of this substation laid the foundation for the full-scale trial production of the Qinghai Salt Lake Magnesium project. The integrated magnesium metal project consists of ten sub-projects: 100,000 tons per year of magnesium metal, 1 million tons per year of methanol and olefins produced via MTO, 500,000 tons per year of PVC (250,000 tons produced by the ethylene method and 250,000 tons by the calcium carbide method), 2.4 million tons per year of coke, 400,000 tons per year of calcium carbide, 1 million tons per year of soda ash, along with 2 x 300MW cogeneration units and a project for the harmless treatment of 100,000 tons of calcium chloride. The 3.6 million-ton coal grading and quality-based utilization project in Inner Mongolia came online. On May 27, the annual production capacity of 3.6 million tons for the comprehensive utilization of coal through grading and quality differentiation by Inner Mongolia Zhengneng Chemical Group Co., Ltd. was put into operation at the Erdos Shengyuan Coal Chemical Industry Base. With a total investment of 16.578 billion yuan, this project takes advantage of Ordos’ abundant coal resources to carry out efficient pyrolysis of local low-grade long-flame coal and its staged, differentiated utilization. It is planned to process 15 million tons of raw coal per year to produce clean energy products such as gas, electricity, and hydrocarbons. The projects put into operation on that day included a 15,000-ton high-quality magnesium alloy project, a 3.6 million-ton semi-coke project, 2×25,000-kilowatt ferrosilicon projects, and accompanying 2×25 MW generator sets. This is the largest single-project among all the completed projects for the comprehensive utilization of coal based on quality and grade nationwide.