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More Natural Gas Supply has been ensured for trial-production of Dazhou Project

05-28-2010 The Ko Yo Group's project with annual productivity of synthetic ammonia and urea of approximately 400,000 tonnes and 450,000 tonnes respectively in the Natural Gas Energy Utilization Area of Dazhou City, Sichuan Province (“Dazhou Project”) has gained stable and enough natural gas supply to trial-production from Sinopec since the project has got some gas supply only sufficient for test-run in mid-January 2010. 


On 16 January 2010, Sinopec started supplying natural gas to the site where the project was. And then the equipment has successfully carried out a single body with allied move run-in. With continuously expanding and increasing supply volume of natural gas from Sinopec for Dazhou Project, the test run and trial-production of the equipment will be ensured by stable and sufficient gas supply and be well prepared for realizing its full production. 



Dazhou Project is a new project initiated by the management of Ko Yo Group after comprehensive consideration on the development trend of chemical and fertilizer industry and on the basis of the fact that rich natural gas resources exist in that place. The equipment of such project runs on natural gas (the annual 450 million m3 of natural gas standard required under the project has been confirmed by the Development and Reform Commission of the Sichuan Provincial Government and China Petrochemical Corporation) to produce liquefied ammonia and processed into urea products. The project is cost effective. The aggregate amount of investment of the project is approximately RMB 1 billion, which is only 1/3 of the aggregate amount of investment of same level equipment in the industry. The project adopts Kellogg’s Process and Stamicarbon’s CO2 Stripping Process. Both are international cutting edge technologies and are low in consumption and emission with the advantage of boosting productivity and efficiency. 



Currently, the deployment of production resources and marketing network of the project has been completed. It is expected that the completion and production of the project will become a new source of profit for the Group and at the same time ensure the sustainable development of the Company in the future.

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