At present, new coal chemical projects are highly favored, and all provinces with coal resources are interested in flexing their muscles in this area. At the 3rd China Petroleum and Petrochemical Industry Development International Forum held in Beijing on June 16, industry experts pointed out that at present, China's coal chemical projects are obviously overheated, and the new coal chemical industry should develop in an orderly manner during the 12th Five-Year Plan period, with emphasis on demonstration projects. Do a good job, and then gradually promote according to the planning and technology maturity.

Li Shousheng, executive vice president of the China Petroleum and Chemical Industry Federation, pointed out that the new coal chemical industry is a major highlight of China's petrochemical industry during the “11th Five-Year Plan” period. Although there has been a breakthrough in technology, it is not fully mature. In addition to the technology, water resources and environmental capacity are also very important for the new coal chemical industry. However, many regions now plan to launch coal-to-oil, coal-to-olefin, coal-to-natural gas, and coal-to-ethylene glycol projects. The new coal chemical project is obviously overheated. Taking coal-based olefins as an example, there are 29 projects under construction and proposed projects in China, with a planned annual production capacity of over 25 million tons. The total production capacity of the ethylene and propylene industries in China was only about 30 million tons in 2010. He stressed that the "12th Five-Year Plan" coal chemical industry should be developed in an orderly manner, focusing on the demonstration project, and then gradually promote it according to the planning and technology maturity.

Bai Lan, deputy director of the Petroleum and Chemical Industry Planning Institute, also believes that companies should conduct an objective analysis of coal chemical projects and cannot be “hot” in the country. She pointed out that at present China's four major new coal chemical projects are inadequate. Although coal-based natural gas is one of the country's energy strategies, the laying of natural gas pipeline networks involves many aspects such as security, so at present only Xinjiang is a key development area. The coal-to-oil project is not only technically perfect, but also consumes too much coal and water resources and the investment is too high. Bai Hao said that at present, a 1 million-ton/year coal-to-oil project has an investment of 14 billion to 15 billion yuan. Under such circumstances, China should still make extensive use of international crude oil to meet domestic demand.

For the coal-to-ethylene glycol and coal-to-olefins projects, Baidu believes that due to the low cost of ethane from ethylene in the Middle East and methanol from natural gas, whether the coal-based products are competitive is the first issue to be considered. In addition, the existing coal-to-ethylene glycol projects still have problems such as immature technology and lack of supporting PTA projects in coal-rich areas, which are very limited in industrialization.


Bai Lan also reminded that, compared with the previously approved demonstration projects, the state has also raised the threshold for new coal chemical projects that have undergone new approvals. Therefore, although the locals are keen on the Shangma Coal Chemical Project, projects that do not have the necessary conditions will certainly not be approved. In the end, the coal chemical project is likely to be “thundery and rainy”.

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