Sinopec awarded EPC contract for world’s largest Coal To Olefins complex in Inner Mongolia

29-Jan-14

Sinopec Engineering Group has been awarded by Zhong Tian He Chuang Energy Corp. Ltd., the engineering, procurement and construction (EPC) contract to design and build the world largest Coal-To-Olefins (CTO) plant at Uxin Banner near Ordos, Inner Mongolia. Established for the purpose of this US$3.2 bln capital expenditure CTO project, Zhong Tian He Chuang Energy Corp is a joint venture between China Coal Energy Company (China Coal) and the Sinopec Group (Sinopec) with 38.75% interests. China holds the third largest coal reserves in the world after USA and Russia, as per Project Smart Explorer. Despite intensive investments in the downstream industries, China import 45% of its ethylene To gain self sufficiency, China’s monetization of its coal reserves through the petrochemical industry has got the same level of priority in China as the coal-fired power generation. In addition to the S-MTO technology and the EPC contract, Sinopec Engineering Group will provide Zhong Tian He Chuang with project management consultancy (PMC) services for the production and logistic of the equipment. Sinopec is expecting to hand over the US$3.2 billion CTO petrochemical complex in less than two years for October 2015. The Zhong Tian He Chuang CTO project will include: Coal gasification unit, Coal purification unit, Air separation unit, Coal-To-Methanol unit of 3.6 mln tpa, Two Methanol-To-Olefins (S-MTO) units of 1.8 mln tpa each, Olefin catalytic cracking unit of 200,000 tpa, Polypropylene unit (loop reactor) of 350,000 tpa, Polypropylene unit (gas reactor) of 350,000 tpa, Low density polyethylene (LDPE) unit (tank reactor) of 120,000 tpa, LDPE unit (tubular reactor) of 250,000 tpa, Linear low density polyethylene (LLDPE) unit of 300,000 tpa, 1-butylene unit of 30,000 tpa, Methyl Ter Butyl Ether (MTBE) unit of 10,000 tpa, Offsites and Utilities, Air Compression unit, Olefins intermediates tank farm unit