Hengyi Petrochemical's unit plans to invest 25.7 billion yuan in coal-to-chemicals project

About this update from Hengyi Petrochemical Co., Ltd. Class A

Hengyi Petrochemical SZSE:000703 on Friday said its unit plans to invest 25.7 billion yuan ($3.77 billion) in a coal-to-ethylene glycol project, according to a company filing to the Shenzhen stock exchange.The project targets annual production of 2.4 million metric tons of high-quality fiber-grade coal-based ethylene glycol, and will be located in northwestern China's Xinjiang region.Construction is expected to take three years, and production is expected to start in the first half of 2028.The firm has obtained the land and preliminary approvals."As uncertainty in global energy supply increases ... the strategic advantages of coal-based chemical industries are becoming increasingly evident," it said.China's coal-to-chemicals sector has been on the rise since the Iran war started, as it cashes in on the ability to turn domestic ‌coal into petroleum products and other chemicals without relying on shipments through the Strait of Hormuz.($1 = 6.8092 Chinese yuan renminbi)

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