China’s LUXI Chemical lets contract for methanol-to-olefins plant

LUXI Chemical Group Co. Ltd., Liaocheng City, Shandong Province, China, a subsidiary of state-owned LUXI Group Co. Ltd., has let a contract to Honeywell International Inc. to provide process technology and automation controls to its Liaocheng manufacturing site that will convert methanol derived from gasified coal into basic olefins used to produce plastics.

Honeywell subsidiary UOP LLC will delivery LUXI Chemical its proprietary advanced methanol-to-olefins (MTO) technology to covert coal-derived methanol into 293,000 tonnes/year of ethylene and propylene, Honeywell said.

As part of the contract, Honeywell Process Solutions (HPS) will implement a suite of automation and control systems, including the Experion Process Knowledge System (PKS) and Safety Manager, which will be used in tandem with proprietary UOP operating models, to manage plant operations.

Neither a value of the contract nor a timetable for production startup were disclosed.

LUXI Chemical marks the eighth company in China to select UOP’s Advanced MTO technology to meet increased demand for ethylene and propylene, which continues to grow globally at a rate of 4-5%/year, the service company said.

Lacking the abundance of domestic crude supplies traditionally used to produce olefins, China is due to invest more than $100 billion in coal-to-chemicals technology within the next 5 years, Honeywell said.

Contact Robert Brelsford at

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...