AMEC for $1.5bn China coal-to-chemicals project

London -- Shenhua Ningxia Coal Group (SNCG) has appointed AMEC to carry out the initial engineering design for the offsite and utility facilities on a $1.5-billion coal-to-chemical production complex in the Ningxia Hui region, north west China. AMEC did not disclose the value of its contract.

AMEC has been working as SNCG's project management contractor for the overall facility since early 2006. Its Shanghai-based engineers will now provide the basic engineering and design needed to define and integrate all the common, site-wide systems required to service the six individual process units within the facility.

The contract covers systems including power and steam distribution, water systems, flare and fire fighting, interconnecting pipework, air and gas, site-wide instrumentation, control, electrical systems, loading/unloading facilities and storage, said AMEC.

The SNCG  facility, which is designed to produce 540 kilotonnes per annum of polypropylene, will include a coal gasifier plant, a methanol and methanol-to-propylene unit and a polypropylene unit. The project is scheduled to be completed in early 2009.

Polypropylene is usually derived from oil refining and ethylene processing but the project will use coal as the feedstock, which will come from large reserves in the Ningxia area.

The contract will further strengthen AMEC' s expertise as the leading contractor in coal based petrochemical facilities, claims Ross Gibson, president of AMEC's China operations, Natural Resources. "We have the skills and resources to respond to the challenge and look forward to contributing to the success of this important and prestigious project."