China Coal Group's 300,000 Tons of Methanol Project Starts in Reverse Market

In the town of Baozibao, Lingshi County, Jinzhong City, Shanxi Province, the 300,000-ton methanol project of China Coal Group was launched against the market.
Analysts pointed out that under the circumstances that the international oil price drop has caused pressure on coal chemical projects and the international financial crisis has deepened, China Coal Group held a high-profile launching ceremony for its methanol project, which reflects the fact that China Coal Group is relying on its own industrial chain. Against the risk of confidence; On the other hand, Wang An, the newly appointed general manager of China Coal Group, who has just been in office for less than three months, attended the opening ceremony and spoke in person, reflecting the “strategic new thinking” of the new head of the central enterprise. One can expect that the China Coal Group, which has become an important force in China's energy sector within a few short years, is expected to play a more important role in China's energy market in the future.
It is understood that the project of the 300,000-ton methanol project of China Coal Group has been established for a long time and is a key investment attraction project of the Shanxi Provincial Government. The project is adjacent to one of the country's largest coking plant, China Coal Jiuxin Coking Co., Ltd., which has an annual output of 2 million tons of coke project. Using the coke oven gas of China Coal Jiuxin, using the latest technology to synthesize methanol, not only can create economic benefits, but also The effective use of coke oven gas is a green and environmentally friendly circular economy project.
In fact, China Coal’s 300,000-ton methanol project with a total investment of more than RMB 1 billion has basically completed various start-up procedures as early as in 2007. There has been no construction start in more than one year later, which has caused suspicions from all walks of life. China Coal Group’s executive director and corporate representative Huazuo Gui, who is in charge of the coal chemical industry segment, said: China Coal has been working hard for the project. The reason why it was not started early was mainly because the land acquisition procedures have been in process. . This time after all the land formalities had been handled, the project was "lightly loaded" and there were no worries.
Then, in the wake of the global financial turmoil and the sharp drop in international oil prices and methanol prices in the market, are major projects that have invested more than 1 billion yuan in investment? Are they worried about future benefits? Hua Zugui stated that this concern is necessary for an independent methanol company, but it is not necessary for China Coal’s methanol company. The main reason is that China Coal’s methanol project and coking project are circular economy projects. The methanol project not only has low raw material prices, but many public facilities can also be shared with Jiuxin's 2 million tons of coking project. It is estimated that even if the market price of methanol is lower than the current, the methanol project is still profitable.
The professionals in the energy industry analyzed that the reason why China National Coal Group launched the methanol project in the downturn of the market was mainly due to the advantages of the coal coking industry chain. In fact, from the perspective of the industry chain of the entire coal industry, coal companies either sell raw coal or sell deep processed products of coal. The deep-processed products are divided into three categories, one is the use of coke to produce coke, the other is the direct liquefaction of coal, production of dimethyl ether, gasoline and diesel and other chemical products, the third category is the direct use of coal pit power generation. For China Coal Group, before 2003, there was no coal chemical sector formed. At that time, China Coal Group made a decisive decision and set up a new “Coal Coal Coking Holdings Company” to specifically engage in deep processing of coal. In the initial stage, it mainly used coking coal to make coke. At present, after nearly five years of development, China Coal Group has 7.3 million tons of coke production capacity, becoming one of the largest coke enterprises in China.
It is also a certain degree of deep processing capacity of coal, China Coal Group has further stretched the coal industry chain, through the "eat dry squeezed out" to improve the company's core competitiveness and ability to resist risks. In fact, in addition to the production of coke oven gas for methanol, coking enterprises also have a series of by-products such as tar to be developed. From this perspective, China Coal Group has a complete industrial system of coking coal production, coke processing, coking by-product processing, and coke trade. It is based on this complete industrial chain that lays the foundation for China Coal's 300,000-ton methanol project to “go against the market”.

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