APIC ’07: China coal chemical investment to rise

17 May 2007 06:00  [Source: ICIS news]

TAIPEI (ICIS news)--Huge investments will be poured into China’s coal chemical industry over the next five to 10 years, an industry expert said on Thursday.

The country’s methanol capacity, most of which are based on coal, is expected to reach 40m tonnes/year by 2010 from an estimated 11.8m tonnes/year in 2006, SRI consultant Kazuaki Nakamura said at the 28th Asia Petrochemical Industry Conference.

This could rise further to 63m tonnes/year by 2015, he added.

Nakamura was presenting a paper on behalf of his Beijing-based counterpart Qu Guangdong who could not be in Taiwan.

Coal chemicals are important currently due to high crude oil prices and strong derivatives demand, he said.

The improvement in technology and equipment and abundant coal reserves in China also pushed coal chemicals’ development, he added.

However, these project require large capital investment, he said, adding that another challenge will be finding a contractor, Nakamura said.

Consumption of methanol in coal chemical production was expected to more than triple to 15m tonnes by 2010 with most of it used to make dimethyl ether (DME).

Close to 5m tonnes of methanol would be required to make olefins by 2010.

By: Florence Tan
+65 6780 4359

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