Published On: Mon, Aug 29th, 2011

Air Liquide collaborates with SNCG to build methanol-to-propylene plant in China

Worldwide gas company Air Liquide announced on August 26 that its Engineering & Construction division has signed a contract with the

Shenhua Ningxia Coal Industry Group (SNCG) to build a 500,000tpa Methanol-to-Propylene (MTP) plant in China.

The contract comprises the basic engineering, license and supply of proprietary equipment as well as services for procurement and technical advisory services at the site. According to the press release, this will be the third large-scale MTP plant licensed by Lurgi, a subsidiary company of Air Liquide working closely with SNCG.

As stated, SNCG and Air Liquide signed a cooperation agreement that includes the continuous improvement and further development of the Lurgi MTP technology. Moreover, SNCG agreed to support the marketing of this technology in China and to support Air Liquide’s Engineering & Construction division with its own start-up and operational experience. Air Liquide will remain the sole owner and licensor of the Lurgi MTP technology.

The unit to be built in Ningdong, in the Chinese province of Ningxia, will have the capacity to produce around 500,000tpa propylene from coal. The engineering phase for the contract is to be completed within about eight months.

François Venet, Chairman of the E&C committee said, “The MTP technology offers very promising perspectives to fight the world’s dependency on crude oil. Today, thanks to its cost-efficient and state-of-the-art technology Air Liquide is well positioned to play a major role mastering environmental challenges. We are proud to be able to contribute to SNCG’s responsible and rapid development thanks to Lurgi’s strong relationship with SNCG and the mutual reliability and trust which are major factors for continuing our fruitful collaboration today.”


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