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November 6, 2009

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Home » Business » Energy

Firms to push on with US$10b Shaanxi project

SHENHUA Group, China's largest coal miner, and Dow Chemical Co will reportedly move ahead with their planned US$10-billion coal-to-chemical project in Shaanxi Province after a delay of at least one year.

Top executives from the companies, senior officials in the province and representatives from the United States Embassy in China attended a cornerstone laying ceremony on Tuesday, the China Chemical Industry News reported yesterday.

The Yulin project in north China's Shaanxi aims to install 23 units that include a 3.32-million-ton-per-year methanol facility for ethylene and propylene, which are used for making various plastics and chemical products.

"The feasibility study of the project has entered the stage of applying for an approval from the central government," the newspaper said, citing an unnamed local government official.

The feasibility study was previously planned to be completed last year.

An assistant president of Shenhua who is based in Beijing declined any knowledge of the project, and officials at Dow Chemical in China could not immediately be reached.


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