China’s Hengyi Petrochemical has reportedly announced, through subsidiary Hengyi Energy Technology (Turpan) Co., Ltd., plans to build a 2.4-million-ton-per-year coal-to-gas monoethylene glycol (MEG) project for high-quality fiber applications in the Turpan Economic Development Zone of Xinjiang Uyghur Autonomous Region, announced on May 15, 2026. Total investment is reportedly RMB 25.7 billion (approximately $3.56 billion).
The project is being built within a coal-based new materials circular industrial park in the Turpan Economic Development Zone, applying a coal-to-chemical process that uses coal as feedstock to produce ethylene glycol. The company reportedly states that upon completion, it will be the world’s largest single coal-to-MEG facility. However, the specific process technology licensor was not confirmed in the disclosure materials and is therefore not included. The company is reportedly aiming to build an integrated business structure spanning crude oil, coal, and fiber (油煊布) through this project.
Annual production capacity is 2.4 million tons, with total investment of RMB 25.7 billion. Construction is expected to take about three years, targeting commercial production in the first half of 2028. Funding is reportedly planned to come from equity and self-raised capital, and preliminary procedures — including land acquisition, project approval, energy assessment, environmental impact assessment, and safety assessment — have reportedly already been completed, with only shareholder meeting approval remaining.