I. Project Name:
MTO Project in YuHeng Coal-chemical Industrial Zone

II. Project Implementation Agency:
Leading Group Office of Energy＆Chemical Base Construction in Northern Shaanxi

III. Project Description:
It is planned to establish an annual production capacity of 2.4 million tons carbinol by taking coal as raw materials and adopting Shell coal gasification technologies, compositive carbinol technologies of Germany Lurgi, UK ICI and 3-towers fine distillation process, and to form an annual production capacity of 0.44 million tons ethene, 0.35 million tons propylene, 0.08 million tons C4 composition and 0.09 million tons others products by use of technologies from carbinol to olefin (MTO technology), of USA UOP. The raw coal, 3.7 million tons annual, will be provided by Yuheng Mining Area.

IV. Total Investment and Cooperation Form:
Total investment of the project is about US$ 1.217 billion. Multiple cooperation form can be adopted, such as sole investment, joint venture, cooperation and etc.

V. Anticipation of Market and Investment Return:
It is predicted in China that the demand of ethene in 2007 will be 20.2 million tons with domestic satisfaction rate of 49%, and 33 million tons with an annual increase rate of 10.3% in 2012. The annual sales income will be US$ 409.6 million with internal return rate of 16.3%. The investment return period will be 8 years.

Contact Person: Wang Jianping, He Xin
Tel：+86-29-87294264
Fax: +86-29-87294680
Add：Shaanxi Dev. ＆ Reform Commission, Xincheng, Xi'an 710006