Total investment of China CTO/MTO nearly CNY 400 billion during 2017-2021
Western China leading the development of CTO, attracting the attention of global petrochemical giants
Looking forward to the future, industry pioneers will gather in Guiyang 2017 CTO Conference
--Total investment of China CTO/MTO nearly CNY 400 billion during 2017-2021
As of Nov 2017, there are 28 coal (methanol) to olefins (CTO/MTO) projects in China, which have been put into operation and commissioned, with total olefins capacity of 12.05 Mt/a (not running MTP capacity excluded). China is expected to add 2.62 Mt/a of CTO/MTO capacity.
ASIACHEM predicts that in 2017-2021 years, China is expected to add 13 Mt/a of CTO/MTO capacity, with a total investment of nearly CNY400 billion. Among them, a total of about 15 Mt/a CTO/MTO capacity concentrated in Western china.
2017 China CTO/MTO projects map is as follows.
来源：《中国煤制烯烃年度报告2017》、《中国CTO/MTO季度报告2017》
Source: <China Coal to Olefins Annual Report 2017>, <China CTO/MTO Quarterly Report 2017>
--The western China attracts the eyes of the international petrochemical giants, and CTO will develop towards high-end and intelligent
The advantages of coal cost in the western region have attracted the attention of the international petrochemical giants. On the one hand, the new capacity of polyolefin will be released in succession, impacting the international polyolefin market in China and even in Asia. On the other hand, there is great attraction to participate in the development of coal to olefins industry, and achieve diversification of raw materials.
In 2014, the world's largest single coal chemical project - China Shenhua-Dow Yulin recycling economy coal comprehensive utilization project, formally approved by the Ministry of Environmental Protection(MEP). The total investment of the project is up to CNY 125 billion 856 million, and the main chemical products have reached 39 varieties, integrating the top industrial technology of modern coal chemical industry and petrochemical industry. The project began to demonstrate in 2005. Shenhua and Dow signed the framework agreement in May 2007 and announced a feasibility study. Later, due to the change of Dow's global strategic focus, the project was implemented by Shenhua separately.
In 2016, MEP approved the environmental impact report of CPI and Total JV 800kt/a coal to polyolefin project. The project is located in Dalu Industrial Park, Zhungeer Country, Ordos City, Inner Mongolia, using local coal resources to produce 800kt/a PE, PP and other products.
In 2016, Shenhua Ningxia Coal-Saudi Arabia Basic Industry Corp JV 700kt/a coal to olefin & new material process demo project environment impact assessment work launched. The project is to be built in the chemical park of Ningdong Energy Chemical Production Base, Ningxia, the total investment is expected to be CNY27 billion. Saudi Arabian Basic Industry Corp (SABIC), Shenhua Ningxia Coal Industry Group and the government of Ningxia Hui Autonomous Region reached principle agreement on further promotion of a JV project construction.The two sides set up joint ventures.
According to ASIACHEM’s data, there are currently nearly 30 of CTO/MTO projects under construction or planning, of which 15 projects are located in the western region and most of them are coal-to-olefins integration projects. The fastest progress of the preparatory work include: Qinghai Mining, Shenhua Baotou II, and Sinopec Great Wall Guizhou project.
As of the end of Sep. 2017, China has built 21 sets of coal (methanol) to olefins plant, a total capacity of 120.9 Mt/a (excluded the mothballed MTP projects in Shandong). Among them, 8.18 Mt/a capacity of olefins concentrated in the western region of China. Coal chemical industry in the western region is developing from extensive impression to high-end and intelligent development stage.
In 2016, Chinacoal Shaanxi Yulin Energy and Chemical Co., Ltd was listed in "intelligent manufacturing pilot demonstration projects" by the Ministry of Industry and Information Technology, which was the only selected enterprise in China's coal chemical industry.
On October 1st, 2017, Shenhua Ningxia coal phase II olefins project achieved full load operation. The construction was started in March 2015, mainly to use naphtha and LPG side streams from CTL/CTO processes as feed material and produce ethylene and propylene through an advanced cracking process. In April 2017, the construction was fully completed. As the coal chemical industry's first intelligent plant, Shenhua Ningxia coal million tons olefins project has the advantages of high efficiency, green and safe etc.
