China’s Shanxi Lanhua plans methanol, olefins plants in Jincheng

31 May 2010 08:16  [Source: ICIS news]

SHANGHAI (ICIS news)--Shanxi Lanhua Coal Industry Group plans to build a 1.8m tonne/year coal-based methanol plant and a 600,000 tonne/year methanol-to-olefins (MTO) facility at Jincheng in central China, a company source said on Monday.

Based on an agreement signed late this month, Shanxi Lanhua would tap Sinopec Nanjing Chemical Industry for the technology to be used in the complex, the source said.

Coal feedstock for the methanol plant would be obtained from its subsidiary Shanxi Lanhua Sci-tech Venture Co, a coal and coal-chemical producer, the source added. 

“It is just a framework, and [the project] has no actual progress now,” the source said, declining to provide details of when work on the project would commence.

“It is still unknown whether the company will extend to further downstream sectors, such as polyethylene (PE) and polypropylene (PP). We need to do more study later,” he added.

MTO synthesis is a process that converts methanol into propylene and ethylene with the aid of a catalyst.

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By: Judith Wang
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