I. Project Name:
MTO Project in Binchang Coal-chemical Industrial Zone

II. Project Implementation Agency:
Leading Group Office of Energy ＆ Chemical Base Construction in Northern Shaanxi

III. Project Description:
It is planned to establish an annual production capacity of 1.5 million tons carbinol by taking coal as raw materials and adopting Deshgu coal gasification technologies, compositive carbinol technologies of Germany Lurgi and 3-towers fine distillation process, to form an annual production capacity of 0.27 million tons ethene, 0.23 million tons propylene and 0.068 million tons butylenes by use of technologies from carbinolto alkene, of USA UOP. The raw coal needed of 2.03 million tons to the project will be provided by Xiaozhuang coal mine. The planned production capacity will be 6 million tons.

IV. Total Investment and Cooperation Form:
The total investment of the project is about US$ 1.01 billion．Multiple cooperation forms can be adopted, such as sole investment, joint venture, cooperation and etc .

V. Anticipation of Market and Investment Return:
It is predicted in China that the demand of ethane in 2007 will be 20.2 million tons with domestic satisfaction rate of 49%, and 33 million tons with an annual increase rate of 10.3% in 2012. The average annual sales income of the project is about US$ 346.4 million. Its EIRR is 15.3% and investment payback period is 8 years.

Contact Person: Wang Jianping, He Xin
Tel：+86-29-87294264
Fax: +86-29-87294680
Add：Shaanxi Dev. ＆ Reform Commission, Xincheng, Xi'an 710006




I. Project Name:
Construction of Production Facilities of Carbinol

II. Project Implementation Agency:
Leading Group Office of Energy＆Chemical Base Construction in Northern Shaanxi

III. Project Description:
The project is to construct a chemical plant, which takes local rich good quality coal as the raw materials to produce carbinol. Advanced processing technology will be introduced to the project. The project scopes are to construct production capacity of 2.3 million tons of carbinol annual and produce by-products including propylene and polypropylene. The project will be completed in two stages. A production capacity of 600 thousand tons of carbinol will be built in the first phase, with which, annual 1.37 million tons of coal will be consumed.

IV. Total Investment and Cooperation Form:
Total investment of the first phase project is US$ 299.88 million．In which, the fixed asserts investment is US$ 272.07 million. Joint Venture is welcomed.

V. Anticipation of Market and Investment Return:
With the first phase project, it is forecasted that the annual revenue will be US$ 117.78 million, profit US$ 38.69 million, tax US$ 20.56 million. The investment profit rate is 15.08%, the investment profit and tax rate 20.01%, the IRR 16.35%(after tax). The investment recovery period is 7.6 year.

Contact Person: Wang Jianping, He Xin
Tel：+86-29-87294264
Fax: +86-29-87294680
Add：Shaanxi Dev. ＆ Reform Commission, Xincheng, Xi'an 710006