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Production of natural gas methanol production project in Inner Mongolia
China has now launched its largest methanol production facility, the first to reach a one-million-ton annual capacity. On September 10th at 10:00 AM, the country's largest domestic natural gas steam reformer was successfully ignited, marking the completion and start of operations for the Inner Mongolia Boyuan United Chemical Co., Ltd. methanol plant. This project is a strategic combination of resource availability, transportation infrastructure, technological advancement, and market potential. With an annual production capacity of 1.35 million tons, it plays a crucial role in demonstrating the feasibility of large-scale new energy and heavy chemical projects in China.
The Boyuan Methanol Project was jointly developed by Inner Mongolia Yuanxing Energy Co., Ltd. and the American Sigma Investment Group. Located in Wushaozhao District, Ordos, Inner Mongolia, the site benefits from abundant coal, natural gas, and water resources. The region holds over 50 billion tons of coal reserves, and the Sulige Gas Field, one of China's largest, has proven natural gas reserves of 533.652 billion cubic meters. The project was initiated three years ago, following the completion of a smaller 350,000-ton-per-year methanol unit. It utilizes advanced international technology from EMC Corporation and SCMP Company, with all key equipment sourced from the U.S. The system ensures safe, stable, and low-energy operation, with zero emissions through full recycling of industrial wastewater.
According to Yuanxing’s management, the total investment reached 1.472 billion yuan. Despite being located in northern China, the project benefits from nearby railway lines such as the East (Sheng)-Ukraine (Hai) and Silver (Taiwan)-Tai (former) routes, as well as the Ordos-Caofeidian pipeline under construction. These connections allow efficient transport of goods directly to the nearest port, contributing to the development of a western energy corridor.
Industry experts view this milestone as the beginning of China’s large-scale methanol era, signaling a shift from small, scattered, and disorganized production to larger, more structured operations. Methanol, as the fourth-largest chemical raw material in China after ethylene, propylene, and benzene, is also emerging as a major investment focus. Currently, there is a significant gap in high-quality natural gas-based methanol production, with about 1.5 million tons imported annually. As national policies continue to promote natural gas utilization, the demand for methanol from natural gas will only increase.