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Insight | Time: Sep 16 2021 11:16AM
Methanol affected by controls on energy consumption and intensity
 
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Lately, several methanol plants and downstream plants in China cut production or shut, due to the “dual-controls” on energy consumption and energy intensity – or the amount of energy consumed per unit of GDP. In addition, some restarts of plants after maintenance are postponed. In Jiangsu and Shandong Provinces, several methanol plants based on coke oven gas are shut due to the dual control as well as environmental protection inspection.

 

Plants shut for scheduled maintenance or affected by dual controls, environmental protection inspection or poor economics


Region Producer Capacity (kt/yr) Plant operation
Methanol Inner Mongolia Jiutai Energy 1000 O/R cut to 70-80% on Sep 13 due to coal shortage

Inner Mongolia Ordos Guotai 400 Shut on Sep 13 due to coal shortage

Inner Mongolia China Coal Ordos 1000 O/R cut due to dual controls

Inner Mongolia Shilin Chemical 300 Shut on Jul 15, restart delayed

Inner Mongolia Datang Duolun 1680 Shut on Sep 6 to Sep 30 for maintenance

Shaanxi Yanchang Petroleum Yan’an Energy 1800 Methanol and MTO plants shut on Sep 2 for 45-day maintenance

Shaanxi Shaanxi Coal Industry 600 Shut on Sep 7 to end-Sep

Shaanxi Yankuang Yulin 1300 600kt/yr plant shut on Sep 14

Shaanxi Yulin Kaiyue 750 Shut on Aug 9 for maintenance, restart delayed to end-Sep

Shaanxi Shenhua Yulin 1800 Shut in mid-Aug for maintenance, restarted and O/R at 50%

Shandong Yankuang Guojiao 200 Shut on Sep 10 due to environmental protection inspection

Shandong Jinneng Technology 300 Shut on Sep 12 for 1-month maintenance

Shandong Shengling Coal Coking 250 O/R cut on Sep 12 due to environmental protection inspection

Shandong Tiexiong Xinsha 100 Shut on Sep 13 due to environmental protection inspection

Shandong Shandong Rongxin 250 O/R cut on Sep 10 due to environmental protection inspection

Shandong Hengxin High-Tech 150 Shut on Sep 13 due to environmental protection inspection

Shandong Yizhou Technology 300 One unit shut on Sep 12 due to environmental protection inspection





MTO/CTO Inner Mongolia Shenhua Baotou 600 Shut on Sep 15 for 1-month maintenance

Inner Mongolia Datang Duolun 460 Shut on Sep 6 to Sep 30 for maintenance

Inner Mongolia Zhongtian Hechuang 600 O/R cut to 50-60% on Aug 18

Inner Mongolia Zhongtian Hechuang 770 O/R cut to 50-60% on Aug 18, shut on Aug 26

Inner Mongolia Jiutai Energy 600 O/R cut to 70-80% on Sep 13

Shaanxi Yanchang Petroleum Yan’an Energy 600 Methanol and MTO plants shut on Sep 2 for 45-day maintenance

Shaanxi Shenhua Yulin 600 Shut on Aug 20, restarted on Sep 7

Shandong Yangmei Hengtong 300 O/R cut to 80% on Sep 9 due to poor economics

Shandong Levima 360 O/R cut to 70% on Sep 8 due to poor economics

Zhejiang Ningbo Fund 600 O/R cut, to shut in Nov for 1-month maintenance

Zhejiang Zhejiang Xingxing 690 O/R cut to 70% in mid-Jun

Jiangsu Sailboat 800 O/R cut to 80% on Sep 9, to shut on Sep 15 for maintenance

Jiangsu Nanjing Chengzhi I 300 Shut on Sep 15 for maintenance

Jiangsu Nanjing Chengzhi II 600 To shut in Oct-Nov for maintenance





Acetic acid Jiangsu Jiangsu Sopo 1200 400kt/yr unit shut on Sep 14

Jiangsu Nanjing Celanese 1200 Running stably, planning to cut O/R

Jiangsu Yangtze ENEOS (Nanjing BP) 500 Running stably, planning to cut O/R


In Jiangsu Province, acetic acid plants are affected by the dual controls. Jiangsu Sopo has shut one 400kt/yr acetic acid plant due to electric power restrictions to reduce the consumption of coal, and two other producers are still planning the production cuts and likely to reduce operating rates later.

 

In addition to the production cuts earlier, the NDRC of Shaanxi Province, Yulin City issued the Notice of Dual Controls Target. Most methanol plants located at Yulin City are required to cut production by 50-60%. The plants involved account for 10.66 million mt/yr of methanol capacity, taking up 60.67% of the capacity in Shaanxi Province and 11% of the total in China.


Location Producer Capacity (kt/yr)
Yulin Yankuang Yulin 600, 700 800kt/yr plant required to shut for revamp
Yulin Yanchang Petroleum Yulin Coal Chemical 350 Production cut by 50%, power supply cut by 50%
Yulin Yulin Kaiyue 750 Production cut by 50%, power supply cut by 50%
Yulin Shenmu Chemical 600 Production cut by 50%, power supply cut by 50%
Yulin Aowei Qianyuan 200 Production cut by 50%, power supply cut by 50%
Yulin Yanchang China Coal I 1800 Production cut by 60%, power supply cut by 60%
Yulin Yanchang China Coal II 1800 Production cut by 60%, power supply cut by 61%
Yulin China Coal Yulin 1800 Production cut by 50%, power supply cut by 50%
Yulin Shaanxi Jingyi 260 Production cut by 60%, power supply cut by 60%
Yulin Shenhua Yulin 1800 Production cut by 50%, power supply cut by 50%


According to the feedback, most plants have just received the notice, and are discussing the plan to cut production.

 

It is a tough task according to the targets of dual controls. Methanol supply would reduce inevitably. Other regions may also be affected by the dual controls, in addition, methanol plans based on natural gas would be affected by gas restrictions in winter. In a conclusion, driven by supply reduction, methanol market is expected to strengthen.


[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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