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Sinopec to build largest coal-to-olefins plant in Inner Mongolia
Sinopec Engineering (Group) Co, a unit of Asia’s largest oil refiner Sinopec Group, has won an 18.67 billion yuan (US$3.1 billion) contract to build a coal-to-chemicals project in north China.
The company will be responsible for the engineering, procurement and construction of the project for Zhong Tian He Chuang Energy Corp, Sinopec Engineering said in a Hong Kong stock exchange filing yesterday.
Zhong Tian He Chuang is 38.75 percent-owned by Sinopec Corp, the flagship listed unit of Sinopec Group.
The new complex in Uxin Banner, Ordos, Inner Mongolia, will be able to produce 3.6 million tons of olefins -- mainly ethylene, a key petrochemical building block -- per year upon completion, making it the largest coal-to-olefin complex in the world, Sinopec Engineering said.
The project will use Sinopec’s self-developed technology known as SMTO to convert methanol, extracted from coal, into olefins, rather than the conventional method of deriving petrochemicals from crude oil.
Sinopec Engineering said it expects to hand over the project by October 30, 2015.
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