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Chapter 171 Methanol

     Secretary Qian and Liu Fei actually don’t quite understand what petrochemical base is, but the attention in the province means that Secretary Li of Yuan County has been paid attention to.

If he was promoted to regional commissioner and Su Cheng's support, Secretary Qian's future in Min Huang would end here. Therefore, Secretary Qian not only did not dare to leave, but instead served him carefully, and even helped Su Cheng's seasoning dish add vinegar to the spicy food.

Old Li may not necessarily suppress him as a commissioner, but if Su Cheng's dissatisfaction has not subsided, the blow will probably not only come from "Commissioner Li". Thinking of this, Secretary Qian not only lost his jealousy, but also showed respect. He knew in his heart that as long as Su Cheng was willing to invest tens of millions of dollars to the west of Shanxi, the province would definitely follow his temperament.

It was useless to regret at this time. He ignored the secretary and accompanied Su Cheng to serve tea and water. He was extremely attentive. Seeing that Su Cheng was still unsatisfied, he specially bought a tray of small buns and 2 taels of pot stickers, and added yellow spicy food to him, plus seaweed shrimp soup...

Only then did Liu Fei realize that the boss from home served people better than him. When he looked at Su Cheng's calm and gentle appearance, he felt strange. When he first met that day, he actually had a bit of a fox and a tiger's power. Not only did he think about completing the tasks assigned by the secretary, but he also tried to scare Su Cheng and take this line with overseas relations in his hand.

Now it seems that I have not left any good impression on Sucheng.

After a while, Sucheng finished breakfast and wiped his mouth with a napkin, "Please both of you, I'll go there first."

"Dr. Su is at will." Secretary Qian no longer wants to invest. Secretary Li brought the petrochemical base to attract the interest of the provincial government. This contribution is a foregone conclusion. Since he cannot take it away, he can only think of a way to deal with the aftermath.

He watched Su Cheng leave the restaurant and was about to leave. Suddenly he saw a familiar figure.

Secretary-General of the Provincial Government.

He was very sure of the identity of this long-faced man, and he watched Su Cheng and the Secretary-General shake hands and chat happily. Secretary Qian sighed softly and went back to the small hotel without saying a word.

He was wrong. Sucheng was preparing to invest not tens of millions of dollars, but a petrochemical base worth billions of dollars.

Therefore, even if the provincial government is calm, it will be as hot as if it is burning its butt at this time.

The base tentatively named "Dahua Petrochemical" was built to digest natural gas, mainly producing methanol and synthesis of ammonia.

Among them, methanol is an important chemical raw material and is also one of the clean energy sources of the future. It can not only be used to produce plastics, synthetic fibers, but also to make hundreds of products such as fuels, coatings, spices, feeds, medicines and pesticides. Among organic chemical raw materials, methanol consumption ranks fourth, second only to ethylene, propylene and benzene.

Synthetic ammonia is the main raw material for nitrogen fertilizer. In the late 1980s, gas-head fertilizers were widely used abroad, while oil-head fertilizers were used in China. However, the rising price of heavy oil is an irreversible trend. The cost-effectiveness of oil-head fertilizers will naturally become lower and lower. Switching to gas-head fertilizers has long been the mainstream. However, domestic economic management departments do not care about this kind of thing, and large domestic enterprises are unwilling to do thankless things, so they have been delayed year by year.

Methanol also has the difference between coal heads and gas heads. Because of the rich coal resources in China, coal heads are often prepared. Judging from the background of Sucheng’s understanding, the coal head methanol technology that has been researched with a lot of money has finally touched the coal head. Since the price of coal prices exceeds 250 yuan per ton, the cost of 1 ton of coal head methanol is 50 yuan higher than that of 1 ton of gas head methanol. However, the cost of coal head methanol equipment is 4 times that of gas head methanol equipment, and the pollution of the three wastes is very different. The result is another failure of Chinese characteristics...

Of course, in the era when coal prices were 150 yuan, it was unpopular for Sucheng to choose gas head methanol.

During the first formal negotiations of the provincial government, Song Xingyu, the other party's expert, said in a persuasion tone: "Dong Su. We appreciate the social responsibility of Dahua Industrial. However, Dahua Petrochemical should also consider China's national conditions appropriately. Our Shanxi province is a major coal province. In Shanxi, it is the most cost-effective to produce methanol in Shanxi. Of course, the equipment cost of coal-head ethanol is a little higher..."

Vice Governor Wan Shan looked at Su Cheng. He is the executive vice governor in charge of industry. He not only hopes that Dahua Petrochemical will pay taxes, but also hopes that Dahua Petrochemical will digest coal as much as possible. For the coal market in 1989, overcapacity is a real problem.

He smiled and said, "If there is something difficult for Director Su, we can propose it. Let us discuss it together. For Dahua Industrial, the organizational opinions are supported."

Sucheng knew their ideas, their efforts and their ultimate failure. As a coal power, China hopes to develop coal chemistry from beginning to end. Almost any chemical product wants to be produced with coal in order to reduce costs.

The end result was that when China's economy rose, electricity alone made China's coal price slightly two or three times higher. The coal equipment developed in the past was sacrificing the environment for cheap coal, but instead was disbanded because of its poor economic efficiency.

From the perspective of later generations, China's coal development is actually excessive. As a non-renewable resource, the crazy use of coal will only have bad effects on China, but no benefits.

What's more, the establishment of the petrochemical base in Sucheng itself was to consume UAE natural gas.

Therefore, Su Cheng had no choice but to spread his hands helplessly and said, "To be honest, I can't afford it. I am not the one who left when I plan to build a petrochemical base. You may know that I have signed a liquefied natural gas underwriting contract with the UAE government, so I have to use natural gas as raw material as possible. Coal head equipment is expensive and there are also many post-processing. On the contrary, I have a certain ability to withstand the material cost."

"If Dahua Industrial is short of funds, we can help with petrochemical construction in the province. I dare not say that there are more, and it is still no problem to have tens of millions of yuan." The Executive Vice Governor took on such a huge package, which is due to the price of methanol equipment imported from Sucheng. More than 20 million US dollars of equipment, two or three sets of equipment at a time. They naturally welcome this kind of investment.

"Thank you, Governor Wan, bank loans are definitely needed. In this regard, we will make plans." Sucheng needs as much loan as possible, but when it comes to equipment purchases, it is impossible to borrow US dollars, and the total amount is limited.

Expert Song Xingyu did not force it and said with a smile: "In fact, electricity production consumes the most natural gas."

Su Cheng smiled and said nothing. Electricity is the only place that the Ministry of Energy can manage, and it is a top monopoly among China's monopoly state-owned enterprises. It is very easy to generate electricity using natural gas, but it is simply difficult to make the produced electricity be sold online.

Of the 18 million tons of liquefied natural gas underwritten, 10 million tons are already sold, of which 60% or 70% are unfinished contracts in the UAE, and 30% are cheaply swallowed by Formosa Plastics and its related companies. The remaining 8 million tons depend entirely on Sucheng itself.

At this time, foreign petrochemical companies were watching his good show, hoping that Dahua Industrial would dump it and then re-bidge the Setan Oilfield in the UAE. They didn't even give Dahua Industrial the opportunity to negotiate. The only thing Sucheng could do was to expand domestic consumption.

If 30 years later, the 7 million tons of methanol produced in China a year can consume 18 million tons of liquefied natural gas, not to mention the larger amount of fertilizers. However, 30 years later, petrochemical plants will use methanol plants with an annual output of 180,000 tons of methanol, and 10,000 tons of methanol in 1989 have not been domestically produced, and the gap here is 20 times more.

Su Cheng estimated that if he used all 8 million tons of liquefied petroleum and natural gas to produce methanol, he would get more than 2 million tons. If half of it is used to produce synthetic ammonia and half is used to produce methanol, it would not be a problem to swallow it all with China's industrial consumption.

What is worrying is that the US dollar has become RMB, with a 10% to 20% exchange rate loss. In addition, it is a problem of production capacity.

Su Cheng thought for a while and decided to go through the bottom of the matter, saying, "The three sets of methanol production equipment I commissioned have been dismantled from Brazil. It is estimated that in two months, I will be able to arrive at the port in another one or two months before I can reach Yuan County. In addition, I am also planning to purchase three more sets and are entrusting foreign law firms to help purchase. The problem now is that to achieve an annual production capacity of 500,000 tons of methanol production, many factories need to be established, and there are quite a few workers needed. I hope the province can help solve it."

"Produce 500,000 tons a year?" Governor Wan's mind was already stiff when he heard this. He had done his homework before, and at this time he couldn't help but say, "Wouldn't he need more than a dozen sets of equipment?"

"We are striving to use 15 sets of equipment. If it really doesn't work, we only consider 20 sets of equipment." Su Cheng asked again: "Worker's question?"

"No problem, there are many petrochemical companies in our province that are not well-managed, and we will find them for you." Governor Wan came today just to pat his chest. He was not talking about these conditions that could be agreed upon.

This is also a condition that prompted Sucheng's decision. The province in China that values ​​energy the most is Shanxi, and the province that most hopes to change the single energy structure is Shanxi. The same conditions may be put into coastal areas, and it may also be pushed to the top three obstacles and four. Putting it here will almost be a green light.

Su Cheng smiled and nodded, saying, "In this case, coupled with the production base of synthetic ammonia, the place in Yuanxian will definitely not be enough."

"You can choose the entire Minhuang area at will." The district secretary was worried that he would let Sucheng go away, so he didn't care about the rules and immediately interrupted.

Governor Wan glanced at him and said, "It may not be the Minhuang area. Dahua Petrochemical is welcomed throughout Shanxi."

"We will send someone to take a closer look." Su Cheng said, taking a deep breath and said, "The next thing is the issue of transportation and approval."

Now, everyone stopped talking.

After a long time, Song Xingyu whispered: "The railway capacity is now tight, and the Ministry of Railways is probably not very interested in the transportation of liquefied petroleum and natural gas."

Governor Wan also said in a deep voice: "500,000 tons of methanol and 1 million tons of synthetic ammonia will definitely affect the production of such products in other provinces. The Planning Commission estimates that it will still approve it, but we are not sure when it will be approved and what conditions are there."
Chapter completed!
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