Sinopec Engineering Group Co Ltd, a subsidiary of China's largest oil refiner Sinopec Group, announced on Thursday that it signed a contract worth 18.67 billion yuan ($3.07 billion) with Zhong Tian He Chuang Energy Corp Limited for a coal chemical project.

The two parties entered into an engineering procurement construction contract for the development of a new coal chemical project located in Uxin Banner, Ordos, the Inner Mongolia autonomous region.

The contract took effect from the date of signing and the provisional handover date will be October 30, 2015.

This is the world's largest coal to olefin, synthetic fiber, project. It will be equipped with technology jointly developed by Sinopec Engineering and its parent company.

Sinopec Group has capacity up to produce 3.6 million metric tons a year of methanol to olefin units.