Sinopec Engineering wins $3.1 bn contract for coal-to-chemical project

Sinopec Engineering Group Co Ltd (SEG) has won a Yuan 18.67 billion ($3.1 billion) engineering, procurement, construction (EPC) contract to build one of the world’s largest coal-to-chemical projects. Sinopec Engineering Group and Zhong Tian He Chuang Energy Corporation Ltd have entered into an EPC contract for the development of a new coal chemical project in Uxin Banner, Ordos, Inner Mongolia.
 
SEG’s scope of the work under the contract includes the general contracting of EPC for main units, such as a coal gasification unit, a purification unit, a 3.6 million tonnes per annum (MTPA) synthetic methanol unit, two 1.8 MTPA methanol to olefin units (SMTO), a 200 kilo tonnes per annum (KTPA) olefin catalytic cracking unit, a 350 KTPA polypropylene unit (loop reactor), a 350 KTPA polypropylene unit (gas reactor), a 120 KTPA low-density polyethylene unit (tank reactor), a 250 KTPA low-density polyethylene unit (tubular reactor), a 300 KTPA linear low-density polyethylene unit (gas reactor), a 10 KTPA MTBE and 30 KTPA 1-butylene combined unit, and for utilities and facilities, such as the air separation and air compression units, olefin intermediate tankage units.
 
This is by far the world’s largest coal to olefin project. Equipped with the SMTO technology jointly developed by Sinopec Engineering and China Petroleum & Chemical Corporation, it has the capacity up to an aggregate of 3.6 MTPA methanol to olefin units. It is a significant milestone for SEG to establish an integrated new coal chemical industrial chain.
 
For the first time, SEG’s subsidiaries will take part in this project through the joint EPC contracting model. To create synergies, a project management consortium as well as integrated production and logistics facilities will be set up. This model will significantly reduce construction and management costs, optimise resources allocation, thereby maximizing the Group’s profit.