With a Total Investment of 126.2 Billion Yuan, the World's Largest Coal Chemical Project Under Construction Will Resume

Recently, it was learned from the official website of the People’s Government of Yulin that since 2021, Yulin City has adhered to the idea of “complementing the two highs and highs with non-two highs projects, supplementing industrial projects with infrastructure projects, and leveraging social investment with government investment”. For the project, multiple measures were taken to stabilize investment. In the first three quarters, the decline in fixed asset investment narrowed by 1.6 percentage points compared with that from January to August, realizing a recovery from decline.

The first is to optimize the mechanism and strengthen the responsibility. Establish a project promotion mechanism of "one-week scheduling, one-month-one advancement, one-quarter assessment", and arrange for the Municipal Development and Reform Commission to subside to supervise the decline in fixed investment and lagging counties and districts in the allocation of special debt. Compress and compact to form a joint force for stable investment.

The second is to implement targeted policies and push projects. Actively seek support from the Central Province for energy-using projects that comply with national regulations, and strive to resume work on the 50,000-ton degradable plastic project of Shaanxi Coal Yulin Chemical and Shenhua in November. Speed up the preliminary procedures for unstarted projects, and strive to increase investment of 3 billion yuan within the year. Implement weekly scheduling of key projects under construction at the municipal level, and prepare for the on-site observation meeting of key projects in the fourth quarter to see and promote.

The third is to leverage strong financial support. In the fourth quarter, the city level allocated 4 billion yuan for urban renewal and major infrastructure construction, and the city and county levels increased unplanned government investment of 10 billion yuan throughout the year. The municipal-level 30 million yuan was used to compensate for the funds, and more than 16.5 billion yuan of industrial technological transformation investment was completed throughout the year. At the same time, it will increase real estate investment and put 11,000 talent apartments, logistics bases and affordable rental housing this year and next to stimulate investment while stabilizing housing prices.

In early July this year, the Shaanxi Coal Yulin Chemical Project was temporarily suspended.

Shaanxi Coal Group Yulin Chemical Co., Ltd. is currently the world’s largest coal chemical project under construction. The total planned investment is about 126.2 billion yuan, and the annual conversion of coal is about 2,400. 10,000 tons, including 27 process devices and supporting utilities, mainly including 15 million tons of coal medium and low temperature pyrolysis, 5.6 million tons of methanol, 1.8 million tons of ethylene glycol, 2 million tons of olefins and downstream downstream product.

Among them, the 1.8 million tons/year ethylene glycol project in the first phase of the project covers an area of about 4.4 million square meters. The estimated total project investment is about 26.5 billion yuan. It is also the largest coal-to-ethylene glycol plant under construction in the world. Mechanical completion in June 2021.

The first and second phases are the construction of 5.6 million tons/year of methanol, 2 million tons/year of olefins and deep processing projects, which are planned to be completed before the end of 2023.

The second phase of the project is led by coal pyrolysis, which is also divided into two phases, one of which is 1.2 million tons/year pulverized coal pyrolysis and 500,000 tons/year coal tar deep processing industrialization demonstration device. It is planned to be completed in June 2021. 

In the second stage, the scale of pyrolysis will be enlarged to 15 million tons, and the coal tar industry chain will be extended to produce aromatic hydrocarbons and downstream products combined with aromatic olefins. It is planned to start construction in 2022 and complete all construction contents before the end of 2025.

It is understood that Hualu Technology has undertaken the EPCO general contracting of the sewage treatment unit, the purification unit EPC general contracting and the air separation unit EPC general contracting project of the Shaanxi Coal Yulin Chemical Ethylene Glycol Project, and the total amount of winning bids exceeds 3.5 billion yuan.