Shenhua receives approval for inner Mongolia CTO project

17 August 2005 04:46  [Source: ICIS news]

SHANGHAI (CNI)--Shenhua Group has received verbal approval from the central government for its northern China coal-to-olefins (CTO) project, a source from the Chinese company told CNI on Wednesday.


The company is still waiting for the final approval documents from the government before starting on basic engineering design on the project, which will be at Baotou in inner Mongolia. Construction work will take three to five years to complete, and most of the facilities will be based on foreign technologies, he added.


The project includes a 1.8m tonne/year coal-based methanol plant and a methanol-to-olefins (MTO) unit, which can produce 600,000 tonne/year of olefins. A 100MW thermal power station, polyethylene (PE) and polypropylene (PP) facilities will also be built.


CNI was told earlier that the project would produce 300,000 tonne/year of PE, 310,000 tonne/year of PP, 94,000 tonne/year of butane, 37,000 tonne/year of heavy alkanes, 19,000 tonne/year of sulphur and 14,000 tonne/year of ethane and propane. However, the source said these capacities, which were outlined in the feasibility study, could be altered later.


Hongkong’s Kerry Group and Shanghai-listed Baotou Tomorrow Technology Co are potential partners for the project, which will be Shenhua’s second CTO project. The company signed an agreement with Dow Chemical in December 2004 to conduct a feasibility study for a CTO project at Yulin, Shaanxi province.

By: Florence Tan
+65 6780 4359

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