3 energy firms to invest RMB 40 bln in Jingbian chemical project

May 13, 2009 (China Knowledge) - Shaanxi Yanchang Petroleum (Group) Co Ltd, China National Coal Group Corp, parent of China Coal Energy Co Ltd<601898><1898>, and a new energy and chemical firm from Thailand have signed a cooperation agreement in Xi'an, the capital of Shaanxi Province, to jointly construct a energy chemical base in Jingbian, Shaanxi Province, sources reported.

According to the agreement, three energy firms will invest a total of RMB 40 billion in the project. Shaanxi Yanchang Petroleum and China National Coal Group Corp will hold 40% stake and 30% stake in the project, respectively. The Thai firm will hold the remaining 30%.

When the first phase of the project is completed, it will have an annual output of 1.8 million tons of methanol, 600,000 tons of MTO, 1.5 million tons of thermal cracking residue and 600,000 tons of polypropylene. Supporting facilities will also be built. The project will be further developed to have a yearly output of 1.5 million tons of methanol and 500,000 tons of MTP. Post-processing programs will also be added to the project.

The second phase of the project will add an annual production capacity of 3 million tons of coal-based methanol and 1 million tons of alkene.