Sinopec-Shell Coal Gasification to build No 2 line in Hunan

16 July 2012 09:09  [Source: ICIS news]

SINGAPORE (ICIS)--China-based Sinopec-Shell Coal Gasification will establish its No 2 coal gasification line at Yueyang in Hunan province at a cost of yuan (CNY) 1.2bn ($188m) in 2015, a company source said on Monday.

Sinopec-Shell Coal Gasification is a 50:50 joint venture between Sinopec and Shell that was established in 2001 with a total investment of CNY1.3bn ($204m). The company’s No 1 coal gasification line was completed in 2006, the source added.

The construction of the No 2 coal gasification line was approved on 12 July, and it is expected to be completed in 2015, the source said without specifying the start-up date.

The unit will be able to produce 60,000 tonnes/year of hydrogen, which will be supplied as feedstock to Sinopec’s subsidiaries such as Baling Petrochemical and Changling Petrochemical, according to the source.

Further details were not immediately available.

Hydrogen is mainly used to produce hydrogen peroxide, synthesis ammonia and caprolactam (capro) at the company’s facilities.

($1 = CNY6.38)

By: Viola Pan
+65 6780 4359

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