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Released June 13, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--A large amount of ammonia, polyolefins and methanol capacity is coming online in the very near future in China as producers look to meet domestic demand. In just these chemical processing categories, Industrial Info is tracking projects with a combined capacity of more than 4.8 billion metric tons per year that are expected to start production in the near future.
In Daxian, Sichuan, Dazhou Jiuyuan Chemical, with Sichuan Academy of Environmental Sciences, is expected to complete construction on a unit that will have the capacity to produce 80,000 metric tons per year of ammonia in addition to 40,000 metric tons per year of melamine and 300,000 metric tons per year of urea. Construction began in June 2015. For more information, see Industrial Info's project report.
"There is a pretty impressive amount of new ammonia capacity coming online," commented Trey Hamblet, Industrial Info's vice president of research for the Chemical Processing Industry. "The capacity would be targeted at their own agriculture and chemical synthesis markets."
Regarding polyolefins, Hamblet noted there is a "significant amount of new capacity required to meet their still growing market, and producers here in the U.S. are still more than a year away from competing and sending our product into that market in any great quantity." For related information, see June 6, 2017, article - LyondellBasell Concentrates on Growing PE Exports.
One such polyolefins project in China is a grassroot polypropylene (PP) and polyethylene (PE) plant in Dianzi Village, Heshi Town. Scheduled for completion in July, the Shenhua Ningxia Coal Industry Group Coal Chemical Industry plant will have the capacity to produce 600,000 metric tons per year of PP and 450,000 metric tons per year of PE. For more information, see Industrial Info's project report.
Finally, "Methanol is big, of course," Hamblet said. "This is what they are predominately converting to ethylene, but also the transportation component."
According to the U.S. Energy Information Administration, China is the global leader in methanol use and has recently expanded methanol production capacity. Since the early 2000s, China's methanol consumption in fuel products has risen sharply and was estimated to be more than than 500,000 barrels per day in 2016. Most of China's methanol supply is from domestic production. About two-thirds of China's methanol feedstock is produced from coal and the remainder from coking gas and natural gas.
In Mayuan Village, Liguo Town, Tongshan County, Xuzhou Weitian Energy, with Xuzhou Environmental Protection Science Research, is expected to complete construction of a grassroot, 143-metric-ton-per-year methanol plant in August. Construction began in late 2015. For more information, see Industrial Info's project report.
In total, Chemical Processing Industry project completions for July through September this year in China total $14 billion in value, ranging from pesticide plants to Spandex fiber facilities.
Meanwhile, planned chemical processing project construction starts for the same period in China amount to $46.8 billion in investments, including a grassroot, 900,000-metric-ton-per-year methanol plant in Wangqiao Industry Park, Changzhi, Shanxi; and a 300,000-metric-ton-per-year polypropylene and 300,000-metric-ton-per-year polyvinyl alcohol unit addition in Hongdong, Guangshengsi Township, Zhaocheng Coking Industry Park, Linfen, Shanxi.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
In Daxian, Sichuan, Dazhou Jiuyuan Chemical, with Sichuan Academy of Environmental Sciences, is expected to complete construction on a unit that will have the capacity to produce 80,000 metric tons per year of ammonia in addition to 40,000 metric tons per year of melamine and 300,000 metric tons per year of urea. Construction began in June 2015. For more information, see Industrial Info's project report.
"There is a pretty impressive amount of new ammonia capacity coming online," commented Trey Hamblet, Industrial Info's vice president of research for the Chemical Processing Industry. "The capacity would be targeted at their own agriculture and chemical synthesis markets."
Regarding polyolefins, Hamblet noted there is a "significant amount of new capacity required to meet their still growing market, and producers here in the U.S. are still more than a year away from competing and sending our product into that market in any great quantity." For related information, see June 6, 2017, article - LyondellBasell Concentrates on Growing PE Exports.
One such polyolefins project in China is a grassroot polypropylene (PP) and polyethylene (PE) plant in Dianzi Village, Heshi Town. Scheduled for completion in July, the Shenhua Ningxia Coal Industry Group Coal Chemical Industry plant will have the capacity to produce 600,000 metric tons per year of PP and 450,000 metric tons per year of PE. For more information, see Industrial Info's project report.
Finally, "Methanol is big, of course," Hamblet said. "This is what they are predominately converting to ethylene, but also the transportation component."
According to the U.S. Energy Information Administration, China is the global leader in methanol use and has recently expanded methanol production capacity. Since the early 2000s, China's methanol consumption in fuel products has risen sharply and was estimated to be more than than 500,000 barrels per day in 2016. Most of China's methanol supply is from domestic production. About two-thirds of China's methanol feedstock is produced from coal and the remainder from coking gas and natural gas.
In Mayuan Village, Liguo Town, Tongshan County, Xuzhou Weitian Energy, with Xuzhou Environmental Protection Science Research, is expected to complete construction of a grassroot, 143-metric-ton-per-year methanol plant in August. Construction began in late 2015. For more information, see Industrial Info's project report.
In total, Chemical Processing Industry project completions for July through September this year in China total $14 billion in value, ranging from pesticide plants to Spandex fiber facilities.
Meanwhile, planned chemical processing project construction starts for the same period in China amount to $46.8 billion in investments, including a grassroot, 900,000-metric-ton-per-year methanol plant in Wangqiao Industry Park, Changzhi, Shanxi; and a 300,000-metric-ton-per-year polypropylene and 300,000-metric-ton-per-year polyvinyl alcohol unit addition in Hongdong, Guangshengsi Township, Zhaocheng Coking Industry Park, Linfen, Shanxi.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
