China's Sinopec plans $2.2bn methanol-to-olefins project in Henan

13 August 2010 05:39  [Source: ICIS news]

GUANGZHOU (ICIS)--Chinese oil major Sinopec plans to invest around yuan (CNY) 15bn ($2.2bn) on a coal-based methanol-to-olefin (MTO) project at Hebi city in Henan province, a local government official said on Friday.

A framework agreement on the project was signed between Sinopec and Hebi city government last Tuesday, said the official.

The project includes a 1.8m tonne/year coal to methanol plant, a 600,000 tonne/year polyolefin plant and possibly some downstream units, he said.

“The polyolefin plant would likely consist of a 300,000 tonne/year polyethylene (PE) unit and a 300,000 tonne/year polypropylene (PP) unit,” the source said, adding that other downstream plants may be included.

“Final investment amount may vary from the initial proposal of CNY15bn, depending on which downstream units would be built,” he added.

Preliminary works on the project, including environment assessment, feasibility study and designing, were expected to be completed and sent for government approval this year, according to the source.

Project construction would last around three years, he added.

Feedstock coal would be supplied by Henan Coal Chemical Group, according to the source.

Sinopec sources were not immediately available for comments.

($1 = CNY6.77)

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By: Fanny Zhang
+65 6780 4359



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