Shenhua, Dow to sign coal-to-chemicals pact

14 May 2007 17:30  [Source: ICIS news]

HOUSTON (ICIS news)--The Shenhua Group of China and the US' Dow Chemical have announced they will sign a co-operation agreement on Monday and announce plans for a feasibility study into a world-scale coal-to-chemicals complex in Shaanxi province, China.

"This project aligns with Dow's strategy to invest in growth geographies like China, and will build Dow's competitive position to serve customers in Asia with locally produced products and solutions," said Dow CEO Andrew Liveris.

The project will use clean coal technologies that convert coal to methanol to produce ethylene and propylene, the companies said in a statement.

The complex will include a chlor-alkali unit, enabling the production of products such as caustic soda, vinyl chloride monomer and chlorinated organics. Other derivative products being planned for the complex include glycols, amines, solvents, surfactants, acrylic acid and derivatives and propylene derivatives.

The feasibility study will include evaluation of the environmental impact, water supply, front-end engineering design, market and product mix, logistics and supply chain and economic viability.

The study is expected to take about two years and the companies will then submit a project application to the Chinese government for approval, they said.

The project will help China reduce its dependence on oil imports, the companies added.

Shenhua is China’s sole large-scale energy company.

By: Brian Ford
+1 713 525 2653

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