The GTX (Gas to fuel & chemical products) project concept currently involves developing an integrated value chain scheme with a GTM facility located in overseas countries and the downstream MTX facility located in coastal China, whereby GTM will provide point-to-point methanol as feedstock to the counterpart MTX project.
The key driver for the GTX value chain is robust olefin market demand in China over the foreseeable future. Due to the emergency of MTO/MTP technologies as competition to naphtha cracking in recent years, there has been a strong momentum to develop MTO projects in chemical parks along China’s coast with methanol imported from overseas.
However, procuring methanol from the merchant market exposes MTO projects to significant prices and off-taker risks, which explains why there are many planned or developed MTO projects along Chinese coast but few of them have actually been built. The integrated GTX value chain can circumvent this kind of risk as methanol will be treated as the intermediate feedstock along the value chain instead of a merchant product, and investors will be able to participate at both ends of the value chain.
Building on its core value chain technologies, CECC is developing a portfolio of GTX projects and targeting its initial GTM projects in North America, where the opportunity is greatest today.
The goal of the project development in North America is to secure development rights to highly advantaged locations with the right combination of attributes such as local government support, port facilities, sufficient land, and natural gas supply for immediate startup of the GTM projects. Currently, there are four GTM project sites identified and developed for two phases of two GTM projects respectively in different geographical locations.
CECC is developing a portfolio of the three MTX project locations along China’s coastal area in North, East and South China respectively which also have advantaged attributes in terms of local government support, proximity to market demand and appropriate infrastructure. For each location, a two phase development is envisaged.
Unique competitive advantages of CECC GTX value chain options
CECC has targeted advantaged locations for project sitting, both at the resource end of the value chain. We have identified upstream locations with the combination of access to competitively priced gas, local government support, and accessible existing infrastructure. We also identified downstream locations with local government support, appropriate expansion plans, backed with business development finance.