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China

10:28 GMT, May 07, 2008 Latest Headlines...

Shenhua Group completes China's first CTL project, other coal chemicalprojects progressing

By Terry Wang
Beijing.  May  7.  INTERFAX-CHINA  -  China Shenhua Group Corp., China's
largest coal producer, has completed construction of the country's first
coal-to-liquids  (CTL) project, a company official said at an industrial
forum yesterday in Beijing.
Zhang Yuzhuo,   the   vice   president  of  the  company,  said  at  the
Petrochemical  Focus forum that the project, which will have a daily oil
production  capacity  of 2,500 barrels and an annual production capacity
of 1.08  million  tons,  is expected to see oil output before the end of
the year.  Zhang  said  that  the energy conversion ratio of the project
will reach 60 percent.
In addition,  the company is still cooperating with South Africa's Sasol
on the second  phase  feasibility  study  of  another  CTL  project. The
project  will  produce 3 million tons of oil annually in the first phase
and will be built in the northwestern city of Yulin in Shaanxi Province.
Zhang said  that  the  company  also  plans to build CTL projects in the
Xinjiang  Uyghur  Autonomous  Region  in  the future, since Xinjiang has
about 40  percent  of  China's  total  coal  reserves.  However,  it  is
difficult  to  transport  Xinjiang's resources outside the region, Zhang
said.
"Our coal  sales  price  stands  at RMB 95 ($13.57) per ton in Xinjiang,
while prices reach RMB 600 ($85.71) per ton in Shanghai," Zhang said.
He added  that  the  oil  output  of  CTL  projects  in  Xinjiang can be
transmitted  through  oil  pipelines  owned  by China National Petroleum
Corp. (CNPC).
Zhang also  said  that  two coal-to-olefin (CTO) projects located in the
northwestern  city  of Yinchuan in the Ningxia Hui Autonomous Region and
the northern city of Baotou in the Inner Mongolia Autonomous Region will
be completed in 2009 and put into operation in 2010.
Shenhua  Group  purchased  methanol-to-propylene  (MTP)  technology from
Germany's  Lurgi  for  the  Yinchuan  project, which will have an annual
production  capacity  of  500,000 tons of polypropylene. Dimethyl ether-
or-methanol-to-olefin  (DMTO)  technology  from the same company will be
used in  the  Baotou  project,  which  will  have  an  annual production
capacity   of   300,000   tons  of  polyethylene  and  300,000  tons  of
polypropylene.
In addition,  an  official  with  Dow  Chemical,  who  wished  to remain
anonymous,  told Interfax that the company is carrying out a feasibility
study with  Shenhua  Group  on  a  CTO  project in Yulin City in Shaanxi
Province.  He declined to reveal details about the cooperation, but said
that because  Shenhua  Group  has  no  coal resources there, it needs to
negotiate with the local government for coal supplies.


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