The Development of China's Coal-based Alcohol Ether Energy 2008

The Development of China's Coal-based Alcohol Ether Energy 2008

The circumstance of China's energy resource is the huge resource of coal and shortage of gas and oil. The verified reserves of petroleum and natural gas were 15.5 billion barrels and 1.88 trillion cubic meters in the end of 2007, only accounting for 1.3 per cent and 1.1 per cent of the world total verified reserves, while the verified reserves of coal was 114.5 billion tons, accounting for 13.5 per cent of the world total coal reserves.

The huge reserves of coal is the advantage of the development of China’s coal chemical industry, and the shortage of natural gas and petroleum is another evidence that coal chemical industry will play an important role in China chemical energy market.

Coal gasification, which has plenty sub-products and applied in many fields, is core of coal chemical industry. Coal gasification synthesises methanol and synthetic ammonia, which can be process urea. In the industry chain of coal-based alcohol ether, methanol is the most important product and organic chemical materials, which able to produce formaldehyde, DMF, Amine, synthetic rubber, acetic acid, dimethyl ether etc; meanwhile methanol and dimethyl ether (DME) are the most appropriate new alternative energy sources, therefore, however the development of coal-based alcohol ether will be in a rapid period in the next few years in China, and government also issued policy to support the development of coal-based alcohol ether.

In 2007 China recorded 10.76 million tons of methanol, an increase of 42 per cent year-on-year; consumption of 11.05 million tons, an increase of 30 per cent year-on-year. the additional extra production of methanol was 4.45 million tons in 2007, but the actual output was 3.2 million tons, the rate of actual output was around 72 per cent, based on this reckoning, in 2008, the new additional extra output of methanol in China will be 4.2 million tons, the output of methanol will exceed demand more than about 2 million tons.

After the standard of MH15 starts in China, the demands of MH15 and its downstream products will be driving China's consumption of methanol to increase and is expected that the annual average growth rate will reach 16.6 per cent between 2008 and 2012, meanwhile the supply will growth rapid as well. the domestic methanol market has a potential oversupply in 2008, but, on the other hand, the impact of the rising price of natural gas in global market and the rising price of coal in the Chinese market, and the demands of MH15 after the new standard of MH15 introduced, all these factors will affect the price of methanol remains at a relatively high level in domestic market.

From July 1st, 2008, China’s VAT of dimethyl ether reduced from 17 percent to 13 per cent, which can be a signal that the State Council has considered that dimethyl ether will as an energy alternatives resource.

China domestic production of dimethyl ether was 445,000 tons in 2006 and jumped to 2.2 million tons, increased 394 per cent in 2007; and is expected reach 4.36 million tons in 2008 and 7.84 million tons in 2009 and 14.84 million tons in 2010.

The current existed and under-construction dimethyl-ether production capacity, which is about five million tons, can meet the demand for replacing civil gas, while the following planned projects should be determined by the process of dimethyl-ether to substitute diesel oil. Overall, it is forecasted that the supply and demand of dimethyl-ether industry in China will be balance from 2008 to 2010.

The development of Acetic acid will remain a high speed in the next three years, the average annual growth ratio of consumption is expected to keep 14 per cent and in terms of the rising price of methanol, the average price of acetic acid will remain over 6,500 yuan/ton in 2008.

Contents

1 The circumstance of the development of China's Coal Chemical Industry

2 The classification of China’s coal Chemical Industry
2.1 The main classification of coal chemical industry
2.2 Support of policy
2.2.1 Coal Coking
2.2.2 Coal Liquefaction
2.2.3 Coal Gasification

3. Coal-based alcohol ether
3.1 Methanol
3.1.1 The supply and demand of global methanol market
3.1.2 The price of China methanol market
3.1.3 The supply and demand of Chinese methanol market
3.1.4 The additional production of methanol in China
3.2 Dimethyl-ether
3.2.1 Demand
3.2.2 Capacity
3.2.3 Price
3.3 Acetic acid
3.3.1 Consumption
3.3.2 Global capacity
3.3.3 The supply and demand of China acetic acid market
3.3.4 The future demand of its downstream products
3.3.5 Price of Chinese market

4. Key companies
4.1 Shandong Hualu-Hengsheng Chemical Co., Ltd
4.1.1 Ownership Structure
4.1.2 Business constitute
4.1.3 Main business: urea and DMF
4.1.4 Future development
4.2 LiuZhou Chemical Industry Co., Ltd
4.2.1 Performance
4.2.2 Analysis of products
4.3 Yunnan Yunwei Group Co., LTD
4.3.1 Production
4.3.2 Performance
4.4 Inner Mongolia Yuanxing Energy Co., LTD
4.4.1 Performance
4.4.2 Coal chemical project


Figure Index

The distribution of world's energy (proven reserves)
The structure of China's energy consumption
The industry chain of coal chemical industry
The development goal of China's coal chemical products
The global demand of methanol based on regional
The global supply of methanol based on regional
The trade map of methanol in Asian market
The price of natural gas and methanol in global market
The domestic price trend of methanol 2006-May 2008
The domestic consumption structure of methanol 2007
The growth of domestic methanol production and consumption
Forecast of China's methanol demand 2008-2020
The consumption and imports of liquid gas in China
The price of domestic liquid gas
The price of domestic DME
The global production capacity and rate of operation of acetic acid
The distribution of global capacity of acetic acid 2006
The consumption structure of acetic acid in China 2006
The production and consumption of acetic acid in China
The domestic price of acetic acid 2004- May 2008
The ownership structure of Shandong Hualu-Hengsheng Chemical
The industry chain of Shandong Hualu-Hengsheng Chemical
the growth of production capacity of Shandong Hualu-Hengsheng Chemical
The revenue of main business of Shandong Hualu-Hengsheng Chemical
The profit of main business of Shandong Hualu-Hengsheng Chemical
The rising price of global urea
The price of urea in Chinese market
The narrowing gap of price between DMF and methanol
The growth of main business revenue of LiuZhou Chemical Industry
The growth of main business gross profit of LiuZhou Chemical Industry
The proportion of main products’ revenue of LiuZhou Chemical Industry 2007
The proportion of main products’ gross profit of LiuZhou Chemical Industry 2007
The gross profit margin of LiuZhou Chemical Industry by products
The industry chain of coal chemical of Yunnan Yunwei Group
Comparison of gross profit ratio of coke manufacturers
Proportion of products’ revenue of Yunnan Yunwei Group
Proportion of products’ gross profit of Yunnan Yunwei Group


Table Index

The output of coke in China 2007
The under-construction projects of China’s coal liquefaction
The output, apparent consumption volume, import and export of methanol in China 2000- Apr 2008
Forecast of new additional capacity methanol
Forecast of domestic consumption and demand of DME
Comparison of the cost of methanol and DME between different coal prices
The existing and under-construction projects of DME projects
The Forecast of global consumption and demand of acetic acid 2005-2010
The capacity and expansion plan of China acetic acid industry 2007-2009
The major Chinese enterprises and capacity of DMF 2007
The capacity and expansion of coke of domestic listed companies
The sales of main products and forecast of Yunnan Yunwei Group
The expansion of methanol capacity of domestic listed companies
Profitability of Inner Mongolia Yuanxing Energy