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China's Shaanxi Coal Group Yulin Chemical Accelerates 15 Million TPA Coal Conversion Project with Major Construction Milestones

26 Dec 2025

China's Shaanxi Coal Group Yulin Chemical Accelerates 15 Million TPA Coal Conversion Project with Major Construction Milestones

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Recently, the final prefabricated column of the compressor plant for the air separation unit within the Phase I project of the olefins, aromatics and deep processing facility at Shaanxi Coal Group Yulin Chemical Co., Ltd.'s 15 million tonnes per annum coal-based clean and efficient conversion demonstration project was precisely positioned into place. This marks the successful completion of all column hoisting tasks for the project.

On the morning of 18 December, positive developments emerged from the Phase 2, Stage 1 project site of Shaanxi Coal Group Yulin Chemical Co., Ltd. – the first box column for Gasification Unit 2 was successfully hoisted into position, signifying the facility's formal transition from civil engineering to installation phase. The column measures 0.9 metres wide, 7 metres high, and weighs 9.5 tonnes.

Recently, the main structure of the gasification wastewater equalisation tank for the Phase II, Stage I project of Shaanxi Coal Chemical Industry Group Yulin Chemical Co., Ltd., constructed by the Third Engineering Company of China Chemical Engineering Corporation XIV, was successfully topped out. This milestone lays a solid foundation for subsequent equipment installation and pipeline laying processes.

The Phase 1, Stage 2 project of Shaanxi Coal Yulin Chemical encompasses a 5.6 million tonne/year methanol plant, a 1.5 million tonne/year methanol-to-olefins facility, a 300,000 tonne/year polyethylene (FDPE) plant, and a 300,000 tonne/year polypropylene (PP) plant. Located within the Qingshui Industrial Park of the Yusheng Industrial Zone in Dabaodang Town, Shenmu City, Yulin, Shaanxi Province, this project builds upon the Group's Phase I Yulin Chemical facility. Centred on coal pyrolysis, coal tar hydrogenation, and powdered coke gasification technologies, it systematically integrates coal pyrolysis, coal/ semi-coke gasification and downstream deep processing technologies. This aims to further extend the industrial chain and explore new pathways for the coupled development of coal-based olefins and aromatics, thereby achieving large-scale, high-end and diversified utilisation of raw coal.

The Shaanxi Coal Group Yulin Chemical Co., Ltd. 15 million tonnes/year Coal Grading Clean and Efficient Conversion Demonstration Project represents the largest single-phase investment in coal chemical projects to date. With a total investment of 176 billion yuan in chemical facilities, it builds upon the Phase I project. Centred on coal pyrolysis, coal tar hydrogenation, and powdered coke gasification technologies, it achieves the systematic integration of coal pyrolysis, coal/ semi-coke gasification and downstream deep processing technologies, further extending the industrial chain. This initiative explores new pathways for the coupled development of coal-based olefins and aromatics, ultimately producing polyolefins, polyesters, polycarbonates, polyether polyols, EVA, POE, SAP, DMC, DEC, EMC, EC and other chemical products, with projected annual sales revenue exceeding 90 billion yuan.

The Phase I, Stage II project of Shaanxi Coal Group Yulin Chemical Co., Ltd.'s 15 million tonnes/year Coal Graded Clean and Efficient Conversion Demonstration Project occupies a total area of approximately 9,200 mu. The estimated total investment for the project is approximately 62 billion yuan. Upon completion, the project is projected to achieve an average annual sales revenue of 20.7 billion yuan and a post-tax profit of 3.3 billion yuan.

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