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Gongli: China's methanol production capacity is not excessive!

wallpapers News 2020-07-31

"We just bought more than 1000 acres of l two weeks ago, we can build at least 10 methanol plants with an annual output of 1.

8 million tons.

The target market is China.

" At a press conference held by the Canadian Embassy on March 20, the reporter met Gong Li, chief financial officer of Canadian methanol Co., Ltd. (CMC), remembered his words.

Different conclusions will be drawn from the same point of view.

The view of domestic methanol overcapacity spread in the industry, Gong Li's words were extremely different, because in his eyes, China's methanol production capacity is not excessive.

Therefore, in view of China's methanol production capacity market dem, the reporter conducted an exclusive interview with Gongli.

Datang Inner Mongolia Duolun coal to polypropylene project with an annual output of 460000 tons is the first coal to olefin demonstration project in China, with an annual output of 1.

68 million tons of methanol.

The project started construction in 2006 was officially put into production in 2012.

(Photo by Li Zheng) there is a large potential dem for methanol in China.

Reporter: in 2013, China's methanol production capacity has reached 56.

5 million tons, the current market dem is more than 30 million tons per year, which is obviously less than the production capacity.

Therefore, China's methanol overcapacity is the main theme.

Do you think China has excess methanol capacity? In view of the domestic methanol market in recent years, many enterprises began to consider the development of methanol downstream products.

The picture shows the 400000 T / a acetic acid project of Henan Longyu Coal Chemical Co., Ltd. (Photo by Li Zheng) Gongli: there is no excess methanol production capacity in China.

According to the statistics of many institutions, China's methanol industry now has a capacity of 60 million tons / year.

However, 70% - 80% of the existing methanol plants in China are small enterprises.

The production technology of these enterprises has been 30 or 40 years ago, the actual operating rate is less than 50%.

Many enterprises will have difficulties in operation if the operating rate exceeds 50%.

Considering this factor, China's methanol industry has no capacity of 60 million tons / year, the actual production capacity is about 40 million tons per year.

Reporter: as you said, the dem supply of methanol in China are balanced.

Gongli: at present, the supply dem of methanol market in China is unbalanced.

China imports 5-6 million tons of methanol from abroad every year.

Methanol production capacity in China is mostly in the west, while methanol consumption market is mostly in the East.

The picture shows that the methanol produced by Qinghai Zhonghao Natural Gas Chemical Co., Ltd. is "ready to go".

Reporter: is the price of imported methanol low? Gongli: at least not higher than the price of methanol in Western China.

Most of China's new methanol production capacity is in Xinjiang, Inner Mongolia, Shaanxi, Shanxi other places.

Methanol production needs a lot of water, the west is exactly where water resources are lacking.

It can be said that the operating costs of coal to methanol plants did not include environmental costs.

If you take environmental costs into account, you can investigate that the cost of methanol production in Western China will be very high.

In addition, you may also know that the development area of methanol to olefins is in the southeast coastal areas with a large number of people.

Then, the possibility of transporting methanol from Xinjiang Inner Mongolia to Shanghai is very small.

Why? At present, China's railway capacity is limited.

According to my understing, the transportation cost of methanol may reach 1000 yuan per ton.

Therefore, although the production cost of methanol in Western China is very low, the environmental cost transportation cost are not added.

If you add these, you will find that the price of methanol delivered to Shanghai from Europe America is almost the same.

Reporter: where is the dem for methanol imported from China? Gong Li: in China, the amount of methanol mixed with M15 M25 methanol gasoline has reached 15-20 million tons per year.

Of course, this is only a rough calculation by others.

China's national development Reform Commission is weighing the legalization of the M25.

According to our estimation, the methanol dem after M25 legalization, plus the dem for coal to olefins, from 2018 to 2020, if all the methanol production capacity in China is added together, there will be a gap of 30-35 million tons in China's actual methanol dem.

Our goal is to produce 18 million tons of methanol annually.

Reporter: what is the return on investment from natural gas or shale gas to methanol in Canada? Gong Li: let me give you an example.

At present, the price of international methanol delivered to Shanghai port is about 600 US dollars per ton, the preferential agreement price is about 560 US dollars per ton, which is 3300 yuan per ton.

Canada is the third largest natural gas producer in the world, with an estimated recoverable resource of 700-1300 trillion cubic feet.

Meanwhile, the price of natural gas or shale gas in Canada is only about US $4 per million BTU (equivalent to RMB 0.

89 per cubic meter).

So much natural gas can only be converted into products with higher added value because it cannot be sold at a price.

From these two figures, the return on investment of methanol project is very high.

Reporter: what is your company's project expectation? Gong Li: we can recover the investment of each methanol plant in a limited number of years, the actual life of a methanol plant is 25-30 years.

Let me give you another data.

The reserves of unconventional natural gas in Canada's Columbia Province is 700 trillion cubic feet.

Our methanol plant only needs 1.

5 trillion cubic feet of natural gas for 25 years with an annual production capacity of 1.

8 million tons.

A large amount of natural gas can not come out, the gas price will remain at a low level.

We have a very optimistic forecast for ourselves.

In only three years, we can put into operation a methanol plant with an annual output of 1.

8 million tons.

By the end of 2017, there will be 1-2 methanol production capacity of 1.

8 million tons / year for China.

At present, our first 1.

8 million tons / year methanol plant has not been put into operation.

Reporter: what is the proportion of foreign sales? Gongli: all of them are for sale.

Reporter: what is the position of 1.

8 million tons / year in the world? Gongli: the world's largest methanol producer trader is our neighbor.

The company's annual total capacity is 8 million tons.

If we had two projects with an annual output of 1.

8 million tons, the production capacity would be close to half of their capacity.

In addition, we just bought more than 1000 acres of l two weeks ago, we can build at least 10 1.

8 million tons / year methanol plants.

Reporter: the annual methanol production capacity of an enterprise is 18 million tons, which is surprising.

Gongli: China 2From 018 to 2020, the capacity gap of 35 million tons / year of methanol is surprising! With the continuous development of China's economy, the annual dem for methanol is increasing at a rate of 10%.

Reporter: when will the production capacity of 18 million tons / year be formed? Gongli: it depends on the downstream dem.

Reporter: how to solve the problem of logistics? Gong Li: in terms of logistics, we have a ready-made way to transport methanol from the interior of Canada to the port, then to China.

We don't have any branches in China, all our products are made in Canada.

China has our long-term partners, either in the form of long-term cooperative procurement, or in other ways to transport methanol or downstream products from Canada to China.

Reporter: since this year, there have been some accidents in methanol transportation in China.

What is the safety of methanol shipping? Gong Li: methanol in China is transported by transport vehicles.

It is very dangerous to pass through cities places with many people.

Even in case of leakage accident, methanol is soluble in water biodegradable, which has limited impact on the environment.

Reporter: does CMC plan to extend downstream to methanol? Gongli: methanol is only one of our products.

Now we are cooperating with companies at home abroad to try to produce oil from natural gas.

This is another possible development direction for us.

In addition, we also plan to develop methanol to olefins directly ship the olefin products to China, which will save the freight increase the added value of the products.

Reporter: with the entry of imported methanol, China has spent a lot of money in the construction of coal to methanol projects in the western region in recent years? Gongli: we can only develop the downstream market as far as possible in the local area, because there are logistics problems.

Although China has resources, the place where methanol can be produced is a place with few people.

If we want to transport this resource to a place with more people, we must solve the problem of logistics efficiency.

We can't just say that we can't do it in a simple way.

We can only say that efficiency can't be brought into full play.

That's what the economy is like.

Why doesn't Canada sell methanol to the United States? Because there are a lot of shale gas in the United States, methanol will not be sold in the United States, the price is low.

If you want to find a place with higher sales price, you should sell it to China or other countries.

I think this is a result of the comprehensive constraints of economic geographical factors.

Reporter: enterprises along the southeast coast of China have already had successful examples of using imported methanol to produce olefins.

Gongli: in fact, there are two dem markets for imported methanol in southeast coastal areas of China: one is methanol to olefin, the other is fuel oil, including methanol gasoline methanol to gasoline through dimethyl ether.

The dem gap of this part will be very large in a few years.

If not, the price of methyl alcohol will soar.

In fact, the import of methanol will help China balance the future supply dem of methanol, will also help China optimize its energy structure with methanol.

Reporter: if CMC's methanol projects have already taken shape, is it a disaster for China's methanol production enterprises? Gong Li: it's not a disaster.

I think it's an opportunity.

The transportation of methanol from the west of China to the East is not smooth.

Therefore, in order to solve the dem problem of methanol in the southeast coastal market, we should not rely on the methanol produced by ourselves, but also cooperate with international companies to make the whole market.

Reporter: have you considered that the Chinese government will introduce some policies to control the import of methanol in order to ensure industrial safety energy security? Gongli: we don't worry.

I don't know if you have any contact with the national development Reform Commission.

The total production of methanol using coal as raw material is controlled at 50 million tons.

Methanol from natural gas is prohibited in China.

Where else can methanol be produced? How to meet the needs? It is an objective fact that we can only rely on foreign imports.

Reporter: another way is to make methanol from coke oven gas.

Gongli: coke oven gas is only a by-product of coking is not the main raw material for methanol production.

Many Chinese enterprises have to use coal have to buy some polluting raw materials.

Now imported methanol gives them a better choice, which can help them achieve their emission reduction targets faster better.

Our methanol price is not very high, because the price is high, no one to buy, the price is very reasonable.


TRUNNANO (aka. Luoyang Tongrun Nano Technology Co. Ltd.) is a trusted global chemical material supplier & manufacturer with over 12 years' experience in providing super high-quality chemicals and Nanomaterials. The nitride powder produced by our company has high purity, fine particle size and impurity content. Please contact us if necessary. (aka. Luoyang Tongrun Nano Technology Co. Ltd.) is a trusted global chemical material supplier & manufacturer with over 12 years' experience in providing super high-quality chemicals Nanomaterials. The nitride powder produced by our company has high purity, fine particle size impurity content. Please contact us if necessary.
TRUNNANO (aka. Luoyang Tongrun Nano Technology Co. Ltd.) is a trusted global chemical material supplier & manufacturer with over 12 years' experience in providing super high-quality chemicals and Nanomaterials. The nitride powder produced by our company has high purity, fine particle size and impurity content. Please contact us if necessary.
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