CNOOC is not afraid of overcapacity and launched coal chemical project

CNOOC was informed that the signing ceremony for the construction contract of China National Offshore Oil Huahe 3052 Fertilizer Project (hereinafter referred to as “3052 Project”) was held in Beijing on July 8. The project is located in Hegang, Heilongjiang, and is scheduled to be completed and put into operation in October 2013.

For CNOOC, the 3052 project is the first coal chemical project invested and constructed in Northeast China. The project uses coal as raw material, uses GE's coal-water slurry gasification process and low-pressure synthesis process carbonic anhydride gas extraction ammonium nitrate process, The annual production capacity is 300,000 tons of synthetic ammonia and 520,000 tons of large-particle urea.

In order to transform itself from an oil and gas exploration upstream company to an integrated energy group, CNOOC has invested in many energy projects other than offshore oil and gas exploration in recent years. Coal chemical industry is also one of them. In addition to the 3052 project, CNOOC has also invested in coal and natural gas and other coal chemical projects in Shanxi and Inner Mongolia.

However, the overcapacity situation in the domestic coal chemical industry has become more and more serious. The relevant departments have repeatedly stated that they will strictly control coal chemical projects.

In March last year, the National Development and Reform Commission issued the "Circular on Regulating the Orderly Development of the Coal Chemical Industry", and urged all localities to further strengthen the examination and approval management of coal chemical projects, without delegating examination and approval authority, slicing to zero, and non-compliance approval. The notice also pointed out that some companies take the advantage of coal resources in the name of developing coal chemical industry. The blind arrangement of the project results in a lot of redundant construction.

However, the enthusiasm of all companies to start coal chemical projects has not been "cast away." According to Li Ye, director of the Energy Conservation and Technology Equipment Division of the National Energy Administration, the National Development and Reform Commission has received 104 large-scale coal chemical projects that have been officially reported from all over the country, with an investment of up to 2 trillion yuan. Li Ye said: "It is obviously impossible for these projects to start construction during the 12th Five-Year Plan period."

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