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The first methanol and dimethyl ether long-distance pipeline will be built
With the rapid expansion of methanol and dimethyl ether (DME) production in Inner Mongolia, the region has become a key player in China's chemical industry. To address the challenges of transporting these liquid chemicals over long distances, China is planning to build its first dedicated pipeline network for methanol and DME, connecting Inner Mongolia to the Bohai Bay area. This initiative is currently in the planning and feasibility study phase, as reported by officials from the Inner Mongolia Autonomous Region on March 23.
According to experts from the Economic Commission of Inner Mongolia, the region currently has an annual methanol production capacity of 2 million tons, with over 10 million tons of additional capacity under construction. The development of long-distance pipelines aims to overcome the transportation bottleneck that has been limiting the growth of the chemical industry in the region and across China. Over 90% of the chemical products produced in Inner Mongolia are exported both domestically and internationally, making efficient and safe transportation crucial for meeting industry goals.
Methanol and DME are classified as hazardous materials due to their flammable and toxic nature, making traditional transport methods like trucks and railways not only costly but also risky. In response, local authorities are working on comprehensive plans to develop dedicated pipelines and heavy-duty transport corridors linking major energy and chemical hubs to coastal ports. These projects are being integrated into regional infrastructure development strategies, with preliminary preparations already underway.
Experts estimate that transporting DME via pipeline could reduce costs to around 0.2 yuan per ton per kilometer, compared to approximately 0.5–0.9 yuan per ton using conventional methods. By 2010, China's DME production is expected to exceed 15.8 million tons, while global methanol demand is projected to reach 40 million tons, with domestic consumption at around 12 million tons. If oil prices remain high, methanol fuel could see significant growth, further increasing demand.
Considering the production of olefins, acetic acid, and other derivatives, methanol demand is expected to reach 20 million tons by 2010. Transporting these chemicals through pipelines from Inner Mongolia to eastern China would not only enhance economic efficiency but also support the sustainable development of the chemical industry. This project represents a strategic move toward safer, more cost-effective, and environmentally friendly logistics solutions for critical chemical products.