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Insight | Time: Apr 23 2019 10:15AM
Syngas (coal)-based MEG plant turnarounds underway
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Operating rate of syngas-based MEG plants in China reached 92.3% in end March, but slipped in April as producers gradually shut units for scheduled maintenances. By April 19, the operating rate fell about 18.4% from end March to 73.9%.

Capacity of syngas-based MEG units which have turnarounds totals 2.36 million mt/year, accounting for about 53% of China's total syngas-based MEG capacity. Turnaround timing is mainly in April-May, and several will shut in June-Jul, and the duration lasts from 15 days to about 45 days. HNEC Puyang, HNEC Shouyang, Xinjiang Tianye, Yangmei Pingding and ECO Coal Chemical have closed their units.

Company Capacity, KT Location Turnaround (plan)
HNEC Puyang 200 Henan Apr 2-end Apr
Xinjiang Tianye 250 Xingjiang early Apr-late May
Yangmei Pingding 200 Shanxi Apr 1-20
ECO Coal Chemical 120 Inner Mongolia Apr 8-early May
Yangmei Shouyang 220 Shanxi Apr 20 to mid-May
Xinhang Energy 300 Inner Mongolia one line late Apr, 15 days, another gradually switched to produce methanol
Lihuayi 200 Shandong May 1, 30 days
Yangmei Shenzhou 220 Hebei May 5, 20 days
Tianying Petrochemical 150 Xingjiang May 4, 15 days
HNEC Anyang 200 Anyang mid-May, 20 days
Qianxi Coal Chemical 300 Guizhou Jun, 30 days

China domestic syngas-based MEG production was 314kt. Due to turnarounds, April production is expected to decrease by around 40kt, May production to decrease by around 50-60kt and Jun production back to March level (compared with March production data). Currently, MEG prices keep low at around 4,600-4,800yuan/mt level. Some coal-based producers might prolong turnaround duration due to losses.
[RISK DISCLAIMER] All opinions, news, analysis, prices or other information contained on this report is provided by analyst of Zhejiang Huarui Information Consulting Co., Ltd (CCFGroup) as general market commentary and does not constitute investment advice. CCFGroup will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
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