Coal Chemical Industry Access Standards Improve Suspension Approval for Coke Expansion Project

The National Development and Reform Commission issued a document regulating the orderly development of the coal chemical industry. In response to the current state of blindly developing coal chemical and coal supply and demand tensions in some regions, the National Development and Reform Commission issued the “Circular on Regulating the Orderly Development of the Coal Chemical Industry” and requested the issuance of relevant national plans. Previously, the approval of the coke and calcium carbide projects for the mere expansion of production capacity was suspended; the construction of coal-to-olefins projects with an annual output of 500,000 tons or below, the coal-to-methanol project with an annual output of 1 million tons or below, and the coal production of 1 million tons or less per year were prohibited. Dimethyl ether project. The industry believes that this move will further raise the threshold of the coal chemical industry and will be beneficial to coal chemical companies that already have the scale, resources, and technology advantages.

The Development and Reform Commission notified that the State Council's document in 2009 had played a positive role in restraining the blind development of the coal chemical industry. However, in some places, there are still problems with disregarding the conditions for coal chemical industry. According to incomplete statistics, at present, the newly added coal used in the construction and approved coal chemical projects in the country has exceeded 100 million tons, and the planned total new coal use for the project is still several hundred million tons. Of particular concern is the fact that some net coal-transferring regions are still actively developing the coal chemical industry, given the tight coal supply of existing thermal power plants. Blind construction and excessive development of coal chemical industry not only exacerbates the contradiction between supply and demand of coal, but also has a direct impact on the country’s total control of energy consumption.

The notice requires that the coal chemical industry be effectively controlled and guided. Specific measures include strict industrial access policies. Prior to the introduction of relevant national plans, the coke and calcium carbide projects that simply increase production capacity should be suspended from approval, coke and calcium carbide projects that do not meet the access conditions must be prohibited, and the outdated production capacity of coke and calcium carbide should be accelerated; the pressure on ammonia and methanol should be large, and the production capacity should be high. Replacement and other ways to improve competitiveness. Coal chemical demonstration projects should establish scientific and strict access thresholds.

At the same time, the notice requires strengthening project approval management. It is forbidden to build the following projects before the new approval list is issued: Projects with an annual output of 500,000 tons or less of coal to produce olefins from methanol, coal-to-methanol projects with an annual output of 1 million tons or less, and an annual output of 1 million tons or less of coal Ether project, with an annual output of 1 million tons of coal-to-oil projects, an annual output of 2 billion cubic meters of coal-based natural gas projects, and an annual output of 200,000 tons of coal-based ethylene glycol projects. Large-scale coal processing and transformation projects above the above standards must be submitted to the National Development and Reform Commission for approval.

In addition, the NDRC also requested to strengthen the allocation of key resources. Coal supply must give priority to the needs of people's livelihoods and power generation. It is forbidden to crowd out living, ecological, and agricultural water to develop coal chemical industry. In areas where the amount of water drawn has reached or exceeded the control targets, the approval of new coal extraction projects for coal chemical projects will be suspended; The prescribed coal chemical projects shall not approve the use of land, shall not issue **, may not pass through the capital market, and strictly prevent the flow of fiscal funds to coal chemical projects with excess capacity.

The Development and Reform Commission also disclosed yesterday that it is working with the National Energy Administration to organize the preparation of the “Coal Deep Processing Demonstration Project Plan” and “Coal Chemical Industry Policy”, which will be implemented as soon as possible after approval.

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