Baofeng Phase III 500,000 tons/year coal-to-olefin project started, setting sail on the road to high-end

        On October 9, 2019 , Baofeng announced that the first start-up of the coke gasification to 600,000 tons/year olefin product section was successful

        On August 2, 2019 , Baofeng announced that the company had carried out the commissioning of the polypropylene plant and the polyethylene plant respectively, and both achieved a one-time successful commissioning and produced qualified polypropylene and polyethylene products, marking the fundraising project.
The back-end product end of coke gasification to produce 600,000 tons/year of olefins will be put into operation ahead of schedule.
The company will achieve a production capacity of 1.
2 million tons/year of polyolefins (600,000 tons/year of polyethylene and 600,000 tons/year of polypropylene), and the output will be realized double
.

        Baofeng Energy is the leading private enterprise in the domestic coal-to-olefins field.
It has been vigorously developing the coal-to-olefins industry and exploring new ways of producing high-end chemical products with coal instead of petroleum
.
This is not only in line with the characteristics of China's energy structure of "rich coal, lack of oil, and little gas", but also an inevitable choice to ensure the security of China's energy strategy
.

        Officially set sail on the road of high-end

        Baofeng Energy Polyethylene introduced gas-phase Unipol (phase 1) and slurry Phillips double-loop pipe (phase 2) technology, and now mainstream production of film materials 7042 and 8088, injection molding HD6081;

        Polyendene introduced the gas phase method Innovene (phase 1) and gas phase method Unipol (phase 2) technology, and now the mainstream production line drawing, low melt copolymerization and thin-wall injection molding, such as L5E89, K8003
.

        At present, the biggest advantage of Baofeng Energy Project is the supply side, and the intensive industrial chain model maximizes the reduction of investment and production costs
.
Each production facility has a compact layout, coal is sourced locally for belt transmission, and its own railway is connected to the national railway network.
Taken together, production and operation costs are reduced by more than 35% compared with companies of the same scale
.

        Solid Polyolefin Operational Data

        Capacity situation

        The current first phase (300,000 tons of PE, 300,000 tons of PP) starts normally, the load reaches 110%, and the normal range of ethylene-propylene ratio is 1.
02-1.
05; the current load of the second phase MTO unit (300,000 tons of PE, 300,000 tons of PP) has been It has been increased to more than 80%, and the supporting methanol plant has a production capacity of 2 million tons per year.
Due to the problem of parts transportation, it is expected to be postponed to April 2020 and put into operation.
At this stage, all methanol raw materials are sourced from outside (Xinjiang Guanghui, Xin'ao, Lutian in the surrounding areas) Chemical, Rongxin, etc.
), the monthly purchase volume is about 150,000 tons, 80% of which are long-term associations, and the weekly purchase volume is fixed
.

        Sales

        The company's direct sales account for less than 20% (including local self-pickup), and the sales area is mainly in North China, accounting for about 50%, followed by East China, accounting for about 40%, and South China accounting for about 10%
.
In the first three quarters of this year, the monthly sales volume of polyolefins was 56,000-58,000 tons.
In October, the output increased to 100,000 tons.
The cumulative sales volume since the second phase was nearly 40,000 tons
.
The sales pricing of polyolefins comprehensively considers various factors such as the bidding price in East China, the quotations of surrounding coal chemical companies, and the futures disk, and the external quotation is made at around 10 o'clock every day
.
The first phase of the company has a storage capacity of about 60,000-70,000 tons, and the second phase has not built a warehouse
.

        Cost situation

        The raw material of coal-to-methanol is coke oven gas and coal-to-gas mixture
.
The unit consumption of coal-to-methanol is 1.
6t/t, and the processing fee is 500-600 yuan/ton; the unit consumption of methanol to olefin is 2.
97t/t, and the processing fee is about 900 yuan/ton
.
The current cash cost of the company's coal-to-methanol is about 1,100 yuan/ton, the cash cost of coal-to-olefin is about 4,600 yuan/ton, and the cost of external extraction of methanol used in the second phase is about 1,900 yuan/ton
.

        According to the data, in the first half of 2019 , Baofeng Energy produced 181,100 tons of polyethylene, 165,400 tons of polypropylene, and 2,278,100 tons of coke, up 16.
91%, 20.
38%, and 10.
59% year-on-year, respectively
.
In addition, the cost of coal mining outside and outside the reporting period decreased, the company achieved a substantial year-on-year increase in net profit in the first half of the year
.

        According to the third quarter report of 2019 , Baofeng Energy's current revenue was 9.
746 billion yuan, the total profit was 3.
284 billion yuan, and the net profit was 2.
832 billion yuan, a year-on-year increase of 18.
63%
.
In the first three quarters, the company's main operating income was 9.
722 billion yuan
.
The sales income of polyethylene, polypropylene and coke were 1.
942 billion yuan, 1.
951 billion yuan and 4.
122 billion yuan respectively
.
Dang Yanbao, the leader of Baofeng Energy, a man full of pride in the northwest, has always hoped to do a real business, "it is best to be a factory manager"
.

        With the greatest possible advantage on the supply side, it is believed that the building of core competitiveness will soon be done on the product side, and metallocene polyethylene is deployed in the second phase of the project
.
Baofeng Energy's plan after 2019 has two aspects: First, continue to expand the high-end coal-to-olefins industry
.
The second is to tap the potential of the fine chemical industry , that is, to cooperate with large international and domestic high-end technology companies to develop and apply some high-precision and cutting-edge technologies to improve, expand, and extend the fine chemical industry, and to do high-end and differentiated articles
.

        Leveraging the Capital Market to Seek a New Pattern of Development

        In May 2019, Baofeng Energy was successfully listed on the A-shares of the Shanghai Stock Exchange and officially landed on the Chinese capital market
.

        Dang Yanbao said that after two full years of unremitting efforts, Baofeng Energy has successfully landed in the capital market, which is an important milestone in the company's development process, as well as a new starting point and a new journey
.