China plans CNY9bn DME pipeline project

07 March 2008 09:30  [Source: ICIS news]

SHANGHAI (ICIS news)--China is planning a yuan (CNY) 9bn ($1.26bn) pipeline project to transport methanol and dimethyl ether (DME) from the city of Erdos, Inner Mongolia, to the Bohai Bay area in northeast China, a government official said on Friday.

The project, which would involve the construction of two pipelines, was expected to begin in 2008 after it received the required government approval, he added.

“For financial sources, we will form a corporation,” he said, adding that the project might even receive government funding.

“Pipelines could substantially decrease delivery costs and are very convenient,” he added.

Inner Mongolia is a main production centre for methanol and downstream DME, which is mixed with liquefied petroleum gas (LPG) and used for city gas supply.

($1 = CNY7.11)

By: Judith Wang
+65 6780 4359

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