On March 2nd, Liu Jishen, the general manager of Xinneng Chemical Group, a subsidiary of Hebei Xin'ao Group, revealed at the "China DME Summit Forum" that the Chinese government is planning to build two dedicated methanol transportation pipelines. One will stretch from Inner Mongolia's Ordos region to Jinzhou Port, while the other will run from Bohai Bay to the same destination. These projects aim to address the challenges of long-distance methanol transport and mark the first such pipeline initiative in China. Although the project has not yet received official approval, it is currently in the early stages of planning. The New Austrian Group, which has been active since 1989, is a key player in the clean energy sector, with three listed companies under its umbrella: Xinao Gas (2688.HK), Enric (3899.HK), and Hebei Weiyuan Biochemical (600803.SH). Earlier this year, on January 8th, the group partnered with the Ordos City Development and Reform Commission to initiate a pipeline project connecting Inner Mongolia to Bohai Bay. According to Liu Jishen, the project will be led by the state, with local governments and multiple companies, including Xin’ao, involved in its construction. “Xin’ao is just one of many participants,” he explained, emphasizing that the initiative is part of a broader national strategy. In addition to the pipeline, Xin’ao has also set up two joint ventures focused on railway transportation of dimethyl ether (DME) and ethanol. These efforts are aimed at addressing future market demands for alternative fuels. When asked about the timeline for completion, Liu Jishen said the project depends on national planning and local coordination. “All preliminary work is underway,” he added. With rising oil prices, the development of coal-based fuels like DME is gaining momentum. Liu believes that, given China’s resource profile—limited oil and gas but abundant coal—coal-based alcohol ether fuels will play a crucial role in the country’s energy strategy. Dimethyl ether, which shares similar properties with liquefied petroleum gas, is increasingly seen as a viable substitute for diesel and LPG. The National Development and Reform Commission has proposed that DME production reach 10 million tons by 2020. As competition in the energy sector intensifies, logistics and infrastructure will become key differentiators. Guo Xuezhi, deputy general manager of New Energy Supply Chain Co., Ltd., noted that transportation and storage capabilities will determine success in the evolving energy landscape. With growing methanol production in Ordos, improving logistics remains a critical challenge.

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