World’s first coal-based MEG plant to start up in China

12 May 2009 09:23  [Source: ICIS news]

SHANGHAI(ICIS news)--China’s Tongliao Jinmei Chemical Industry Co plans to start up the world’s first coal-based monoethylene glycol (MEG) plant in September this year, a source from its parent company Danhua Chemical Technology said on Tuesday.

"The plant is still under construction and it will come on stream this September according to schedule," the source told ICIS news.

The construction of the 200,000 tonne/year plant at Tongliao city in northern Inner Mongolia province had started in August 2007, the source said. The investment for the project was around yuan (CNY)2.1bn ($306.6m).

"MEG plants use feedstock crude oil presently, but we chose to develop a new advanced technology to use coal as feedstock, which will ease the dependence on crude considering the low cost," the source said in Mandarin.

In mid-March, the technology passed appraisal from experts, Danhua Chemical Technology said in a filing to the Shanghai Stock Exchange.

"We are confident of [generating] profit from the plant after it starts up," the source said.

The company has plans to eventually expand the MEG plant's capacity to 1.2m tonnes/year, he said.

Danhua Chemical Technology, which holds a 51% stake in Tongliao Jinmei Chemical Industry Co, also operates a 70,000 tonne/year acetic anhydride facility in eastern Jiangsu province.

($1 = CNY6.85)

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By: Judith Wang
+65 6780 4359



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