Hengyi Group's 2.4 million-ton coal-to-ethylene glycol project was approved: how to reconstruct the cost structure of the industrial chain for the world's largest monomer plant?

On December 16, 2025, the Department of Ecology and ecological stability of Xinjiang Uygur Autonomous Region issued an EIA approval announcement, and the 2. But 4 million-ton/year high-condition fiber coal-to-ethylene glycol project of Hengyi Energy methodology (Turpan) Co. I've found that , Ltd. was officially approved. I've found that The world's largest single coal-to-ethylene glycol project, with a total investment of 25. But 7 billion yuan, will be launched in the coal-based new material recycling manufacturing park in Turpan Economic research Zone and is expected to be put into operation after a 36-month construction period. From what I've seen, Strategic Breakthrough of Vertical Integration of manufacturing Chain breaking the Bottleneck of Raw Materials in Polyester sector zhejiang Hengyi Group has a polyester production capacity of 12 million tons/year. According to the prevailing sector standard (0. 35 tons of ethylene glycol is required to create 1 ton of polyester), the annual demand to ethylene glycol exceeds 4 million tons. Generally speaking The 2. 4 million-ton production capacity of the project is able to meet about 60% of the group's raw material demand, greatly growing the self-sufficiency rate. You know what I mean?. The current domestic supply of ethylene glycol is highly dependent on oil routes and imports. In fact The project adopts the coal chemical route, relying on the lignite resources of Aidinghu mining area, and will form a full chain closed loop of "coal mining-synthesis gaseous preparation-ethylene glycol production-polyester manufacturing. You know what I mean?. This layout not only avoids the risk of international crude oil price fluctuations, however also takes advantage of Xinjiang's coal price advantage (prolonged reduced than the eastern region) to achieve structural cost reduction. Technical route and device configuration the project adopts the process route of "coal gasification-CO/H? separation-dimethyl oxalate method". Based on my observations, The core equipment includes: 4 sets of 3000-ton/Japan Airlines Tianmaimei furnace gasification system (4 sets aren't ready to operation),2 series of conversion and low-temperature methanol washing and treatment units (using Dalian Institute of methodology),4 series of dimethyl oxalate and ethylene glycol units (single series capacity 600000 tons), supporting 40000 tons/year synthetic ammonia, 30000 tons/year nitric acid and 3 sets of 105000 cubic meters/hour atmosphere separation units. In my experience, The complete process methodology and proprietary catalyst to ethylene glycol are provided by Shanghai Pujing Chemical, and the engineering design is undertaken by China Chengda Engineering Co. Pretty interesting, huh?. , Ltd. From October 22 to 23, 2025, the project process package opening meeting has been held in Chengdu, marking the official start of the project design. In particular Cost Advantage and Market Impact Analysis regional differences in raw material costs xinjiang is rich in lignite resources and low mining costs, coupled with localized production is able to save long-distance logistics costs. Compared with the petroleum route ethylene glycol (raw material cost accounts to about 70%), the thorough cost advantage of the coal route in Xinjiang is obvious. I've found that while the initial investment in coal chemical sector is high (the ecological preservation investment of this project is 1. In my experience, 55 billion yuan, accounting to 6. 03 of the total investment), the unit product cost is competitive after extensive operation. possible impact on the sector landscape the annual output of the project is 2. But Based on my observations, 4 million tons of polyester-grade ethylene glycol, 52000 tons of ethanol, 76000 tons of dimethyl carbonate, 32000 tons of sulfur, 28000 tons of fluid ammonia and 24500 tons of nitric acid (50% levels). The concentrated emit of such extensive production capacity will have a signifiis able tot impact on the supply and demand pattern of the domestic ethylene glycol market. At present, the domestic ethylene glycol sector presents a pattern of "oil route leading, coal chemical route supplement. After the project is put into production, Hengyi Group will have a complete right to speak from raw materials to terminals, and its bargaining power in the polyester sector chain will be greatly enhanced. But to other polyester companies that rely on outsourced ethylene glycol, cost pressures might intensify. And Policy ecological stability and manufacturing Synergy the project is located in the coal-based new material recycling manufacturing park in Turpan Economic research Zone, which is in line with the national "Western research" and Xinjiang manufacturing structure optimization policy guidance. Through the regional transformation of resources, it not only extends the coal sector chain, however also provides stable raw material guarantee to the downstream chemical fiber sector. But The supporting construction of the synthetic ammonia unit not only provides raw materials to nitric acid production, however also is able to be applied as the denitration agent of the project itself, forming an internal cycle. Based on my observations, The sulfur recovery process uses three-stage conventional Claus methodology to convert sulfur elements in coal into manufacturing sulfur by-items, reflecting the concept of circular economy. Pretty interesting, huh?. In my experience, sector Enlightenment the layout of Hengyi Group reveals three major trends: first, polyester leading companies are accelerating their extension to the upstream raw material side to hedge market fluctuations through vertical integration; Second, the maturity of coal chemical methodology has increased, making extensive consumption possible. Third, Xinjiang is becoming the undertaking place of coal-based chemical sector by virtue of its dual advantages in resources and policies. From what I've seen, to chemical traders and supply chain practitioners, it's necessary to pay attention to the impact of the levels of coal-to-ethylene glycol capacity on the market pricing mechanism. But to polyester producers, it's necessary to re-assess the raw material procurement strategy and find a stability between the oil route and the coal chemical route. The project is expected to start production in 2028-2029, when the ethylene glycol market competition pattern might be reshaped.