Energy “Golden Triangle” coal chemical industry is now homogenized

The Chinese energy industry is accustomed to using the “Golden Triangle” to refer to the border regions of Mongolia, Shaanxi, Gansu and Ningxia. The energy planning strategy in this area is accelerating.

“At present, the preparation of the “Guidelines for Comprehensive Development of the “Golden Triangle” of Mongolia, Shaanxi, and Gansu Energy” has indeed been completed and is awaiting review by the State Council. However, it is unlikely that it will be passed in the short term.” An authoritative source reported to the “China Enterprises”. The reporter revealed.

According to Gao Shixian, director of the Energy Economics and Development Strategy Research Center of the National Development and Reform Commission’s Energy Research Institute, the establishment of the "Golden Triangle" for Mongolia, Shaanxi, and Gansu Energy is mainly aimed at solving the problem of the sound development of energy resources in the Ordos Basin.

According to statistics, in 2009, the Ordos Energy Basin accounted for 20% of the country's total coal output, with oil and gas equivalents accounting for nearly 18% of the country's total, and natural gas production accounting for 14% of the country's total.

Another person close to the National Development and Reform Commission told reporters that at present, many local governments are brewing and compiling regional energy plans. Many plans have been reported to the National Development and Reform Commission. This kind of regional energy planning and construction has a problem of homogenous development to a large extent. The approval of the National Development and Reform Commission will be more cautious.

Project-driven policy: Regional energy planning "respectively"

The authorities said that in the future there will be a series of regional energy plans, including Qinghai and Xinjiang regional planning. These plans are similar to the "Golden Triangle" plan, and they are mainly coal chemical projects.

Although the competent authorities are gradually tightening and standardizing coal chemical projects, the major coal resources areas and large-scale energy companies have formulated coal chemical development and investment plans for the next 5 to 10 years. Among them, Xinjiang, Inner Mongolia, Shanxi, Shaanxi, Guizhou and Ningxia will be the major provinces in the future development of coal chemical industry.

The above-mentioned authoritative sources told this reporter that China will basically form a “5-area area” energy development layout in the future.

It is understood that the "five zones" are five comprehensive energy development bases, namely Shaanxi, Ordos Basin, Southwest, Northeast (mainly Mengdong), Xinjiang, and "One Belt" is the nuclear power belt in the Middle East. Among them, the Ordos Basin includes four provinces and districts of Mongolia, Shaanxi, Gansu and Ningxia, which is also known as the "energy triangle."

During the "Twelfth Five-Year Plan" period, energy supply in the "fifth district area" accounted for more than 80% of the country's total, and the increment accounted for more than 90% of the country's total," said the authority.

In fact, local governments are keen to support the development of traditional energy sources.

In Central and Eastern China, although some local governments are actively developing new energy plans, they are very supportive of traditional energy sources. This is not reflected in planning but in actual action.

The Manager of Dexi, a company head of Wuxi who worked on the processing of base oil, told reporters that the company's annual production capacity in Wuxi was only 200,000 tons, and it was later prepared to expand to other places and received strong support from the local government.

“This year, there will be a separate plant in North and South, which will be put into production. The annual production capacity will reach 400,000 tons. The local government believes that it can guarantee the local oil supply and increase the import and export volume, so it is very supportive. The energy industry is a high demand. Investment in the two branches is worth 30 million U.S. dollars, which the local government valued,” said Dee.

Di also said that in addition, the local government is also actively introducing some energy companies to form a scale, and ultimately will also prepare an energy plan, which is conducive to the above policy.

"If the policy can be approved, it will definitely benefit the development of our company," said Di.

People in Inner Mongolia also publicly expressed the same view: The national energy base built in Inner Mongolia will give local energy companies a lot of preferential treatment. One of the important measures is to liberalize some of the mining rights of coal mines and the approval of new projects may be even more Loose.

Some experts stated that the energy strategy is the top priority of the country’s economic and social development strategy. At present, all major countries in the world have formulated and are adjusting their own energy strategies. However, China has not yet established a strategy for energy development. Based on this, it has compiled an energy plan, resulting in an overall unbalanced energy development. In practice, there are project-driven policies, Instead of policy-driven projects, it is even more difficult to coordinate energy development with economic development, environment, and resources. In particular, some local governments have unilaterally pursued the scale of development. Without a unified deployment, they have issued their own energy plans to promote round-by-round and unrestrained development.

Lack of overall planning: the emergence of duplicated constructions in coal chemical industry

“The resource structures of the Ordos, Yulin and Ningdong in the “Golden Triangle” are very similar, and there are no essential differences. They are mainly coal chemical industry,” Gao Shixian said.

Zhang Hong, director of the Policy Research Department of the China Coal Industry Association, holds the same viewpoint: “At present, the Yulin region is making efforts to build a national energy and chemical industry base; Ordos has proposed that the coal in-place conversion rate must exceed 50% and vigorously develop coal. Oil, coal to olefins and other projects; Ningdong is more clear, in February 2009, the National Development and Reform Commission formally approved the "Ningdong energy and chemical base development master plan", the project construction steadily.

“All of the three places are based on coal. They all place coal chemical industry at the top of their list of development priorities. They will inevitably appear homogenous competition and carry out redundant construction. Each place wants to be downstream of the other party in order to reduce pollution, and the relationship is more difficult to deal with. "The above authorities said.

The single structure also faces the predicament of repeated construction.

At present, the development of coal-based industries in the regions of the “Golden Triangle” region has converged. The development of coal-fired power and coal chemical industries is a common choice of cities. In 2015, the total planned coal production capacity in the “Golden Triangle” region reached 1.21 billion tons, which is higher than the 1.1 billion tons target set by the National Energy “Twelfth Five-Year Plan”.

Li Yansheng, technical director of Wison Engineering (China) Co., Ltd., said that notifications from the relevant national authorities on coal chemical industry specifications have been issued no less than four times in recent years, and the approval authority for coal chemical industry has been received at the national level. It has raised the threshold for coal to methanol.

Despite strict policies, it still can not stop the local government's enthusiasm for coal chemical industry.

Zhang Hong said that the degree of development of coal resources in the “Golden Triangle” region is also quite different. The development of the Shendong and Zhungeer mining areas in Ordos has already developed into a large-scale development. The scale of coal development in the Yulin area has expanded rapidly, and the Ningdong area has begun to take shape. Shanghai Temple Base has just started construction. Generally speaking, these areas are high quality coal fields.

“It should be planned by the state as a whole, rationally arranged and orderly developed, and it should not be possible to start from a single coal mine or a single mining area. It is necessary to coordinate development in various aspects such as resource development scale, resource utilization direction, downstream industrial layout, and product extension and development to prevent unordered development. Development and industry are similarly developed, which is also conducive to the protection of large-scale coal fields in the country.” Zhang Hong believes.

At the same time of homogenous competition, there is still the common problem of the domestic energy bases in the “Golden Triangle” region where the industrial foundation is weak.

According to a survey report of the relevant ministries and commissions of the “Golden Triangle” region, the industry system in the “Golden Triangle” region is still quite monotonous, and the development of downstream or supporting industries such as in-depth transformation of energy resources, fine chemicals, equipment manufacturing, modern logistics, and financial services has lags behind. Most of the energy products exported are primary products, and there are few types of deep-processed products with small scale.

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