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Researched by Industrial Info Resources (Sugar Land, Texas)--IGP Methanol LLC (Houston, Texas) has secured an air-quality permit for a $3.6 billion, four-unit complex in Plaquemine Parish, Louisiana. As designed, it could become the world's largest methanol production facility.
IGP is just one in a string of corporations expected to pour money into petrochemical projects along the Mississippi River in coming years. The growth is fed by U.S. natural gas prices, which are expected to remain low with booming domestic production. Industrial Info is tracking 13 active methanol-related projects valued at $13.3 billion in the State of Louisiana.
Click on the image at right for a chart showing energy-manufacturing capital expenditures by sector in Louisiana.
Each of IGP's four proposed plants would process 1.8 million tons of methanol per year--or a combined 7.2 million tons per year (MM tons/year)--once completed on a 140-acre site near Myrtle Grove, Louisiana. IGP expects the project to employ up to 1,500 construction workers per plant and provide 325 permanent operations and maintenance jobs. Haldor Topsøe A/S (Ravnholm, Denmark) is the licensor and technology provider for all four IGP plants.
For more information, see Industrial Info's project reports on the first, second, third and fourth phases of the IGP Gulf Coast methanol complex.
With a $3.6 billion total investment value (TIV), the IGP project would top current Louisiana methanol projects under construction or that have started in recent years, including Methanex Corporation (TSX:MX) (NASDAQ:MEOH) (Vancouver, British Columbia), which spent $1.4 billion relocating two plants--each with a capacity of 2 MM tons/year--from Punta Arenas, Chile, to Geismar, Louisiana. Those plants are now up and running.
In 2015, Yuhuang Chemical Incorporated (St. James, Louisiana), the U.S. subsidiary of Shangdong Yuhuang Chemical Company Limited (Dongming, China), broke ground on a $1.9 billion grassroot methanol plant in St. James. Two more phases are set to follow, creating about 1,000 construction jobs and leading to the employment of 325 permanent operations and maintenance workers. Air Liquide Global E&C Solutions Incorporated (Houston, Texas), the U.S. subsidiary of Air Liquide S.A. (Paris, France), is providing engineering, procurement and construction services.
Industrial Info is tracking all major aspects of Yuhuang's St. James project, including the $1.4 billion first phase under construction, designed to produce up to 1.9 MM tons/year of methanol. Phase I construction began in January 2017, and Industrial Info forecasts the project has a high probability (81%-99%) of being completed by the end of 2019. The second phase of Yuhuang's project is expected to increase the facility's capacity to 3.3 MM tons/year, and the third and final phase of construction will involve the addition of a methanol derivatives unit. See Industrial Info's project reports on the second and third phases of the St. James project, for more information.
On January 18, the U.S. Federal Energy Regulatory (FERC) (Washington, D.C.) approved a $21 million project that will enable Transcontinental Gas Pipe Line Company LLC (Transco) (Houston, Texas), a subsidiary of Williams Companies (NYSE:WMB) (Tulsa, Oklahoma), to proceed with its St. James Supply Lateral project in Louisiana. The project, which includes compressor-station modifications in Convent, Louisiana, and Greenburg, Louisiana, involves the addition of a new interconnection that would enable Transco to deliver 161.5 million standard cubic feet per day of natural gas from an existing compressor station in St. Helena Parish, Louisiana, to Yuhuang Chemical's methane-to-methanol complex in St. James. Yuhuang's agreement with Transco provides 20 years of transportation capacity for the facility. For more information, see Industrial Info's project reports on the Convent and Greenburg additions.
The majority of the Yuhuang's St. James production will be shipped to China for use in Shandong Yuhuang's petrochemical operations. At least 20% will be shipped by barge and rail to customers in North America, and the remaining balance will be used as captive feedstock for future downstream derivatives.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle TM, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com
IGP is just one in a string of corporations expected to pour money into petrochemical projects along the Mississippi River in coming years. The growth is fed by U.S. natural gas prices, which are expected to remain low with booming domestic production. Industrial Info is tracking 13 active methanol-related projects valued at $13.3 billion in the State of Louisiana.
Each of IGP's four proposed plants would process 1.8 million tons of methanol per year--or a combined 7.2 million tons per year (MM tons/year)--once completed on a 140-acre site near Myrtle Grove, Louisiana. IGP expects the project to employ up to 1,500 construction workers per plant and provide 325 permanent operations and maintenance jobs. Haldor Topsøe A/S (Ravnholm, Denmark) is the licensor and technology provider for all four IGP plants.
For more information, see Industrial Info's project reports on the first, second, third and fourth phases of the IGP Gulf Coast methanol complex.
With a $3.6 billion total investment value (TIV), the IGP project would top current Louisiana methanol projects under construction or that have started in recent years, including Methanex Corporation (TSX:MX) (NASDAQ:MEOH) (Vancouver, British Columbia), which spent $1.4 billion relocating two plants--each with a capacity of 2 MM tons/year--from Punta Arenas, Chile, to Geismar, Louisiana. Those plants are now up and running.
In 2015, Yuhuang Chemical Incorporated (St. James, Louisiana), the U.S. subsidiary of Shangdong Yuhuang Chemical Company Limited (Dongming, China), broke ground on a $1.9 billion grassroot methanol plant in St. James. Two more phases are set to follow, creating about 1,000 construction jobs and leading to the employment of 325 permanent operations and maintenance workers. Air Liquide Global E&C Solutions Incorporated (Houston, Texas), the U.S. subsidiary of Air Liquide S.A. (Paris, France), is providing engineering, procurement and construction services.
Industrial Info is tracking all major aspects of Yuhuang's St. James project, including the $1.4 billion first phase under construction, designed to produce up to 1.9 MM tons/year of methanol. Phase I construction began in January 2017, and Industrial Info forecasts the project has a high probability (81%-99%) of being completed by the end of 2019. The second phase of Yuhuang's project is expected to increase the facility's capacity to 3.3 MM tons/year, and the third and final phase of construction will involve the addition of a methanol derivatives unit. See Industrial Info's project reports on the second and third phases of the St. James project, for more information.
On January 18, the U.S. Federal Energy Regulatory (FERC) (Washington, D.C.) approved a $21 million project that will enable Transcontinental Gas Pipe Line Company LLC (Transco) (Houston, Texas), a subsidiary of Williams Companies (NYSE:WMB) (Tulsa, Oklahoma), to proceed with its St. James Supply Lateral project in Louisiana. The project, which includes compressor-station modifications in Convent, Louisiana, and Greenburg, Louisiana, involves the addition of a new interconnection that would enable Transco to deliver 161.5 million standard cubic feet per day of natural gas from an existing compressor station in St. Helena Parish, Louisiana, to Yuhuang Chemical's methane-to-methanol complex in St. James. Yuhuang's agreement with Transco provides 20 years of transportation capacity for the facility. For more information, see Industrial Info's project reports on the Convent and Greenburg additions.
The majority of the Yuhuang's St. James production will be shipped to China for use in Shandong Yuhuang's petrochemical operations. At least 20% will be shipped by barge and rail to customers in North America, and the remaining balance will be used as captive feedstock for future downstream derivatives.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle TM, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com
