With a total investment of 5.321 billion yuan, Yan 'an Energy and Chemical New Materials Project officially started

Core Elements and Strategic Positioning of the Project

on November 21, Shaanxi Yanchang Petroleum Yan'an Energy and Chemical Co., Ltd. launched a new carbonyl material project with a total investment of 5.321 billion yuan. Zhang Kaiyong, chairman of Yanchang Petroleum Group, and representatives of major contractors such as China Chengda Engineering Company and Shaanxi Chemical Construction Engineering Company attended the commencement ceremony.

The project adopts the carbonylation process route, using C2-C4 olefins (ethylene, propylene, butylene) as raw materials, through the carbonylation reaction to produce alcohol, aldehyde, ester series products, and downstream to PMMA (polymethyl methacrylate) and high-end ethylene propylene rubber and other high value-added fine chemical fields. The project is positioned to extend the production base of new materials for petroleum alcohol aldehyde ester, which is a typical case of China's coal chemical enterprises extending to downstream fine chemicals.

From the analysis of the value of the industrial chain, the project will change the product structure of Yanchang Petroleum, which is mainly based on bulk basic chemicals, and transform to the field of fine chemicals and special materials with higher profit margins, which is of exemplary significance for the transformation and upgrading of China's coal chemical industry.

Phased implementation strategy and capacity planning

the project adopts the risk management and control model of "integrated planning and step-by-step implementation" and is carried out in three stages:

phase I (until end of 2026): Completion of 25000 tons/year ethylene-propylene rubber second-line unit, 50000 tons/year MTBE unit (including butene isomerization unit) and ACO technical transformation project. This stage focuses on the optimization of existing units and the comprehensive utilization of C4 resources, MTBE unit will digest the refining and chemical by-product C4 resources, improve the efficiency of raw material utilization.

Second stage: New 50000 t/a EPDM plant and 100000 t/a MMA-PMMA integration project. The construction of PMMA integrated device is particularly critical, will open up the complete industrial chain from methyl methacrylate monomer to polymer, reduce intermediate logistics costs, enhance market response speed. PMMA as "organic glass" is widely used in automotive, construction, electronics and other fields, the global market continues to grow.

Third stage: Planning to build butyl methacrylate copolymer, 20000 tons/year POM (polyoxymethylene), 10000 tons/year tert-butylamine and other special chemical plants, which are currently in the feasibility study stage. These products are high-performance engineering plastics and fine chemical intermediates, with high market access barriers but considerable profit margins.

Economic Benefit Assessment and Market Impact

after the project is fully put into production, it is expected to bring an average annual output value of 4.196 billion yuan, an after-tax profit of 0.707 billion yuan, and a net profit margin of about 16.8, which is significantly higher than the average level of the coal chemical industry (usually 8-12%). The project will also create 402 new direct jobs.

From the perspective of market supply pattern, the PMMA production capacity of the project will account for about 3-5% of the Chinese market, and the increase in ethylene-propylene rubber production capacity will have a certain impact on regional market supply. For international traders, it is necessary to pay attention to the potential substitution effect of the project on the import demand of PMMA and ethylene propylene rubber in China after the project is put into operation.

Enterprise Technical Strength and Project Feasibility

the comprehensive utilization project of kerosene and gas, which was put into production by Yan'an Energy Chemical Company in July 2020, has formed a complete coal chemical industry chain: 1.8 million tons/year methanol, 600000 tons/year methanol deep processing, 400000 tons/year young oil processing, 420000 tons/year polyethylene, 300000 tons/year polypropylene, 200000 tons/year butanol, 80000 tons/year 2-PH (Dipropyl heptanol) and 25000 tons/year ethylene propylene rubber and other 8 sets of main units.

In terms of technological innovation, Yannenghua has a number of industry-first technologies: the first light oil processing unit in China, the world's first butanol/2-PH co-production unit, and the world's first ethylene-propylene rubber full-process unit using the Italian FasTech solution polymerization method. The accumulation of these technologies provides valuable experience in engineering implementation and process management for carbonyl new materials projects, and reduces the technical risks of new projects.

For overseas chemical practitioners, the project reflects the three major trends of China's coal chemical enterprises: from basic chemicals to fine chemicals, from scale expansion to value enhancement, and to enhance global competitiveness through technological innovation. It is recommended to continue to pay attention to the project construction progress and the impact on the international trade flow of related products.