On November 11, the main unit of Lutianhua’s 400,000-ton methanol and 100,000-ton dimethyl ether project—the primary reformer’s nitrogen system—was successfully warmed up. This milestone marks a significant step forward for China's first large-scale single-unit methanol production facility, signaling that the completion and operation of such advanced industrial projects are now within reach.
As reporters visited the 290-mu construction site, they were struck by the scale and intensity of the work underway. Towering structures, intricate piping systems, and roaring air compressors filled the air, while hundreds of workers moved efficiently through the site. The project, which began civil construction in April 2004, was completed in just 18 months—well ahead of the originally scheduled 24 months. The participating teams demonstrated remarkable speed, quality, and commitment throughout the process.
Lu Hongsheng, vice president of Lutianhua Group and chairman of Lutianhua Luyuan Alcohol Co., Ltd., emphasized the strong market potential for methanol. With rising global crude oil prices, the demand for methanol has surged, especially as it serves as a key raw material for producing dimethyl ether—a promising alternative to diesel and liquefied petroleum gas.
Lutianhua, historically known as the birthplace of China’s modern urea industry, has long dominated the nitrogen fertilizer market. However, with the growing popularity of compound fertilizers, the demand for urea is slowing down. To ensure sustainable development, the company is now focusing on diversification, exploring non-fertilizer products like methanol and dimethyl ether.
The 400,000-ton methanol and 100,000-ton dimethyl ether project aligns with the national strategy to promote western region development, leveraging natural gas resources and enhancing core competitiveness. According to Zhao Zu, secretary of the Party Committee at Lutianhua Group, the project benefits from several key advantages: abundant natural gas supply in Sichuan, existing infrastructure that reduces investment costs, efficient construction management, and a streamlined technical team. Additionally, the use of clean natural gas minimizes environmental impact, and noise control measures ensure compliance with strict regulations.
Luyuan Alcohol Co., Ltd., a joint-stock company controlled by Lutianhua and other major stakeholders, sees strong market potential for its methanol products, which will serve both East China and local Sichuan markets. Lu Yong, deputy general manager of the company, noted that this methanol plant is the first large-scale single-unit facility under construction in China, and once completed, the dimethyl ether plant will become the largest of its kind globally.
With advanced technology, high product purity, and low energy consumption, the project sets a new benchmark in the industry. As many large-scale methanol projects are still in progress across the country, Lutianhua is leading the way, demonstrating its capability to deliver world-class facilities efficiently and sustainably.
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