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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