China’s Mengda New Energy starts trial runs at new methanol unit

29 November 2013 03:50  [Source: ICIS news]

SINGAPORE (ICIS)--Mengda New Energy, a subsidiary of China National Coal Group  (ChinaCoal), has started commissioning its new 600,000 tonne/year coal-based methanol plant at Ordos in Inner Mongolia, a source close to the company said on Friday.

The yuan (CNY) 3.5bn ($575m) plant is the first phase of the 1.2m tonne/year coal-based dimethyl ether (DME) project at the site, the source said.

The methanol produced from the new plant will be the feedstock for the planned DME facility, as well as for the planned polypropylene (PP) and polyethylene (PE) plants at the site, the source said.

The PP and PE plants that will each have a 300,000 tonne/year capacity will feed into the company's 500,000 tonne/year engineering plastics project, which is due to start up in end-2014, the source said.

Mengda New Energy is a 75:25 joint venture between ChinaCoal and Inner Mongolia Yuanxing Energy Co Ltd.

($1 = CNY6.09)

Additional reporting by Mindy Liu

By: Viola Pan
+65 6780 4359

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