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China Coal Chemical Industry Report, 2006

Published: Nov/2006

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China is short of oil and gas resources while coal resources are relatively abundant. Due to the oil shortage as well as the high price, the application of advanced coal transformation technology is positive to reorganize the chemical industrial structure. Moreover, it is also a strategy for China to be more independent on oil imports, to better-control the environmental pollution as well as to ensure the energy security and to maintain sustainable economic development in the 21st century.

China's raw coal output in 2005 totaled at 2.198 billion tons with a year-on-year growth of 12.37%, which increased by double compared to 998 million tons in 2000. The annual compound growth was 17.10%. The output in 2004 was 1.956 billion tons with a year-on-year growth of 13.2%, up 228 million tons. However, coal shortage still exists.

Statistics and Forecast of Coal Supply in China, 1997-2009 (Unit: million tons)

Being the key project of medium-and-long-term national energy development strategy, the coal chemical industry will major in the production of clean energy and substitutes for oil such as diesel, petrol, aviation fuel, liquefied petroleum gas, methyl alcohol, and dimethyl aether etc. It is expected to be a new emerging industry integrated with technology of energy resources and chemical engineering. The coal chemical industry, as an important role in the sustainable development of China's energy resources in the next twenty years, will alleviate environmental pollution caused by burning coals, and reduce oil import. In a word, there will be great market demand and opportunities in China's coal chemical industry.

Some coal-mining enterprises and regions are currently taking advantage of abundant resources and regard coal chemical engineering as the top priority of their further development. Great efforts have been made in the reorganization of the industrial structure based on the coal chemical. Generally speaking, the coal chemical industry is still on the initial stage, and much related to such fields as coal, chemical, petroleum, electricity, etc., thus requires huge investments and intensive technology to develop inevitably by means of integration and groupnization. At the same time, overall planning, technical research & development and systematic optimization are needed to coordinate its development.

Regional Plan and Objectives of Coal Chemical Development

Based on the data from China Coal Industry Association, China Petroleum and Chemical Industry Association, the National Bureau of Statistics, this report comprehensive and detailed study the development conditions and opportunities of China's coal chemical industry, analyses current development trend, offers prediction and assessment on opportunities and risks of different coal chemical industrial chains, and presents our views and suggestions. The report is of referential importance for coal and coal chemical enterprises as well as institutions and individuals planning to invest in the industry.

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