Impact of Environmental Protection Inspection on Coal-to-Olefin Producers

SCI99 Edit at: 2017/9/7 13:39:04
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The environmental protection inspection was carried out in 2017, which had a limited effect on PP and PE producers. The supply of anthracite was limited as its related units were shut down. Meanwhile, Shenhua (Xinjiang) Group used anthracite to produce methanol, so it shut down PP unit on August 21, under the lack of feedstock. Then market sources focused on whether the production at other coal-to-olefin producers would be impacted by the environmental protection inspection.

SCI’s analysts consulted senior methanol players of Xinjiang Province, who pointed out that the reason why methanol producers and mining enterprises started their internal rectification was that blast accident happened in Xinjiang Yihua Chemical. The continuous accident occurred in Xinjiang Yihua Chemical, showing that many producers didn’t comply with safe production standard. Based on Safety production license, Xinjiang Uygur Autonomous Region Administration of Work Safety did an accident investigation, and then revoked its safety production license. Then the investigation work prevailed in its surrounding producers and mining enterprises. Besides, there was no other producer shutting down units due to the lack of feedstock’s supply in Southwest China, excluding Xinjiang Province.

In addition, result from some problems about water treatment and the coal capacity cutting, the production of unit at Datang Duolun Coal Chemical was impacted. But the person in charge said that PP unit ran normally and was planned to undergo maintenance in September. SCI learns from most coal-to-olefin producers that they have not received any notice from environmental protection inspection team up to now. SCI will follow up whether there will be new policy in the future.
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