Another 1 Million 200 Thousand Ton Glycol Project Started! The Chemical Fiber Giant In The Heat Of Investment Is "Cool Thinking": Raw Materials Will Eventually Achieve Self-Sufficiency, But The Capacity To "Break Through The Road" Is No Longer Smooth.

Over the years, when building polyester raw materials, chemical fiber giants are not the most capricious, only more capricious.

With the acceleration of the integration of private refining and chemical industry and the start of the petrochemical integration project of polyester factories, the enthusiasm of chemical fiber giants is still continuing.

Tong Kun group and Baosteel invest 11 billion 400 million yuan in Lujiang to build 1 million 200 thousand tons of ethylene glycol and supporting syngas project annually.

Recently, the Tong Kun group has made a big move again.

On the morning of October 18th, the cooperation agreement between Zhejiang Tong Kun holding group and Shanghai Baosteel gas company's annual output of 1 million 200 thousand tons of ethylene glycol project, and the signing ceremony of the steam supply agreement of Anhui Yu Shun new material Co., Ltd. and Shen Wan Hefei Lujiang Power Generation Co., Ltd. were held at the headquarters of Tongxiang Tong Kun group, Zhejiang.

Chairman of Tong Kun group, deputy secretary of Lujiang county Party committee, chairman of Shanghai Baosteel Gas Co., Ltd., Ministry of planning and operation of Shen Wan energy limited liability company, deputy general manager of Shen Wan Hefei Lujiang Power Generation Co., Ltd. and general manager of the signing project, general manager of Anhui baoglu industrial gas Co., Ltd., attended the signing ceremony and signed on behalf of all parties respectively.

　　 The successful signing of the two agreement marks the full start of Lujiang's annual output of 1 million 200 thousand tons of ethylene glycol and supporting syngas project, and marks the new stage of development of the chemical industry park.

The contracted annual output of 1 million 200 thousand tons of syngas to ethylene glycol project is located in the long Qiao Industrial Park of Lujiang county. The total land use is about 1800 mu, mainly engaged in the technological R & D, production and sale of synthetic gas to ethylene glycol. Through the construction of coal gasification plant, air separation unit, DMO synthesis plant, ethylene glycol synthesis plant, rectification device, substation, water treatment and other utilities, the annual output capacity of 1 million 200 thousand tons of syngas to ethylene glycol is formed.

Tung Kun's "cool thinking" under the upsurge of investment: the ultimate goal is to achieve self sufficiency of raw materials.

Looking at the current textile and chemical fiber industry chain, the leading position of the industrial chain has been highlighted. And as the leading enterprises' influence and control power on the industry is obviously enhanced, more intense wars appear in these enterprises.

PTA and MEG are the main raw materials for the production of polyester filament, accounting for about 85% of the production cost of PET filament. The production of 1 tons of polyester filament requires roughly 0.855 tons of PTA and 0.335 tons of MEG.

At present, the supply gap of ethylene glycol in China is still large. However, the resource distribution characteristics of China's coal and less oil make China develop coal to ethylene glycol with better cost advantages and raw material advantages. Therefore, in recent years, there has been an upsurge in the investment of syngas to ethylene glycol in the domestic market.

With the continuous technical difficulties and continuous technological progress, especially in the past two years, the technology level of syngas to ethylene glycol has been improved rapidly, and the quality of products has been greatly improved, which has promoted the diversified development of ethylene glycol market in China. Moreover, compared with naphtha to ethylene glycol, syngas makes glycol more cost advantage, which also makes polyester enterprises in the past two years to use syngas to make ethylene glycol ratio increased.

Against this background, for Tung Kun group, with the further expansion of its polyester filament scale, and further realizing the PTA self sufficiency and expanding the scale of PTA, further layout of synthetic gas to ethylene glycol project and self sufficiency of raw materials are the important embodiment of deepening the strategic layout of the industrial chain.

The leading enterprises of chemical fiber enterprises are making coal glycol and glycol production capacity.

From the "Breakthrough Road" of the initial coal enterprises to a large number of production at this stage to ease the tight supply of raw materials for polyester chemical fiber industry, and to the foreseeable "Red Sea competition", the development prospects of the coal glycol industry must be accompanied by challenges and opportunities.

As the world's largest textile production base, China's polyester industry has developed rapidly, and the demand for ethylene glycol has also increased steadily. With the development of many refining and chemical integration projects and modern coal chemical projects, the huge supply and demand gap of ethylene glycol is gradually being filled by new domestic capacity.

In 2018, China's large-scale polyester plant has an annual capacity of 54 million 860 thousand tons, and the annual demand for ethylene glycol will reach 15 million 463 thousand tons, and it will increase further in the future. In terms of supply, in 2018, domestic ethylene glycol production capacity continued to grow, reaching 10 million 632 thousand tons, accounting for 33.5% of the total capacity of the world. China has become a real big producer of ethylene glycol.

As domestic new capacity is put into production, the market competition of ethylene glycol will intensify. According to statistics, there are about more than 60 ethylene glycol projects built and planned in China, and the total annual capacity is close to 30 million tons, most of which are put into operation in 2018~2025 years.

In particular, coal to ethylene glycol, catalyst life and selectivity to support the stable and continuous production of the device, driven by high profits and huge demand gap, in recent years, coal glycol project has blossomed everywhere, and the start-up load has been significantly improved. The influence of coal to ethylene glycol is gradually increasing and competitiveness is also rising.

By the end of this year, the annual production capacity of coal to ethylene glycol will reach 6 million tons, accounting for 48% of the total capacity of ethylene glycol in China. In terms of cost, although the oil price has dropped this year, the cost gap between the petroleum route and ethylene glycol has increased, but it is only about 400 yuan / ton.

With the development of new coal chemical technology in China, the stability of production equipment has been gradually improved, and the quality of coal glycol has also been greatly improved, and the industry is developing rapidly. In 2018, the production capacity of coal glycol has exceeded 4 million 100 thousand tons, accounting for about 40% of the total domestic production capacity. It is estimated that by 2020, the capacity will exceed 7 million 500 thousand tons, and the proportion will increase to 45.6%.

"In the next few years, China's ethylene glycol production capacity will usher in a great explosion, and the scale of new projects will develop towards a large scale. With the distribution of ethylene glycol market in the leading chemical fiber enterprises, the supply pattern of the domestic glycol market will gradually change. Ethylene glycol and naphtha feedstock and ethylene glycol will become complementary and competitive. More importantly, with the distribution of ethylene glycol market in the leading chemical fiber enterprises, the comprehensive competitive advantage of their industrial chain will be further strengthened, and the characteristics of Yu Qiang, the strong man and the "take all" will be further highlighted. An insider commented.