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Researched by Industrial Info Resources (Sugar Land, Texas)--Prices for methanol have been on a downturn as market supply has remained strong, despite higher demand for MTBE and formaldehyde, which methanol is used to produce. But many industry executives, such as those at OCI Partners LP (NYSE:OCI) (Beaumont, Texas), which runs the largest integrated ammonia and methanol production complex in the U.S., expect prices to recover in the long term as demand rises from energy applications. Industrial Info is tracking more than $30 billion in active projects involving methanol facilities in the U.S. and Canada.
On Wednesday, September 16, Industrial Info will present an online market outlook focusing on global spending activity and market trends in the Chemical Processing Industry, with special emphasis on what's happening in 2016. The cost is free. Click here to R.S.V.P. now!
"Production issues in Egypt and Libya, coupled with growing demand for methanol in China for the production of olefins, should support methanol prices globally during the second half of the year," said Omar Darwazah, the investor resources director for OCI, in an earnings call earlier this month. "Subsequently, we also expect prices in the United States to be impacted positively."
China accounts for 43% of global methanol demand, according to Methanex Corporation (NASDAQ:MEOH) (Vancouver, British Columbia).
Industrial Info's VP of Chemicals Research, Trey Hamblet said: "Globally, methanol demand continues to increase for use as a fuel component and feedstock for olefins. The long-term demand outlook, combined with low-cost natural gas feedstock here in North America, is driving a significant wave of capacity projects domestically. Based on the number of new units being proposed in the U.S. right now, the U.S. could become a net exporter of methanol in the coming five to 10 years."
Among the North American methanol projects tracked by Industrial Info are 10 big spenders found at seven sites:
$1.85 Billion: Yuhuang Chemical's Three-Phase Methanol Plant in Saint James, Louisiana
Yuhuang Chemical Incorporated (Houston, Texas), a subsidiary of Shandong Yuhuang Chemical (Group) Company Limited (Heze, Shandong), has begun site preparations for its long-anticipated methanol-production complex on the Mississippi River in Saint James, Louisiana. The first phase of the project, slated to kick off in second-quarter 2016, involves the construction of a 1.9 million-ton-per-year unit. The second phase, set to begin construction in early 2018, will create a second methanol unit to bring total capacity to 3.3 million tons per year. A third phase, unlikely to begin construction until at least mid-2020, involves constructing a methanol derivatives plant that will be used to produce intermediate chemicals.
More than two-thirds of the methanol produced will be exported to China. Most of the remainder will be shipped by barge and rail to North American customers, with a small portion to be used as captive feedstock for the third-phase derivatives units.
Earlier this month, Yuhuang Chemical announced it would transport gas to the methanol complex on the Transcontinental Gas Pipeline, owned by Williams Companies Incorporated (NYSE: WMB) (Tulsa, Oklahoma). And the effects can be felt outside Louisiana; Yuhuang already is adding staff to its corporate office in Houston, and expects to add more as the project progresses. The project is Louisiana's first major foreign direct investment by a China-based company.
For details on the three-phase project, see Industrial Info's project reports on Phase I, Phase II and Phase III.
$3.7 Billion: OCI Partners' Methanol Unit Addition near Beaumont, Texas
At OCI's Beaumont complex, the company plans to construct and install a 1.75 million-metric-tonne-per-year methanol unit in the $2.2 billion first phase of the project. In the second phase, which has an estimated investment value of $1.5 billion, the company plans to install a 22,000-barrel-per-day (BBL/d) methanol-to-gasoline unit.
For details on the project, see Industrial Info's project reports on Phase I and Phase II.
Other high-value methanol projects tracked by Industrial Info include:
$1.8 Billion: Canadian Methanol Corporation's Sundance Methanol Plant in Chetwynd, British Columbia
For details on this construction project, see Industrial Info's project report.
$1.5 Billion: Chemours Company LLC's Methanol Unit Addition in Belle, West Virginia
For details on this construction project, see Industrial Info's project report.
$1.3 Billion: Zero Emission Energy Plants Limited's South Louisiana Methanol Plant in Saint James, Louisiana
For details on this construction project, see Industrial Info's project report.
$1.3 Billion: G2X Energy Incorporated's Methanol Plant in Lake Charles, Louisiana
For details on this construction project, see Industrial Info's project report.
$1.3 Billion: Secure Energy Incorporated's Methanol Plant in Paducah, Kentucky
For details on this construction project, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
On Wednesday, September 16, Industrial Info will present an online market outlook focusing on global spending activity and market trends in the Chemical Processing Industry, with special emphasis on what's happening in 2016. The cost is free. Click here to R.S.V.P. now!
"Production issues in Egypt and Libya, coupled with growing demand for methanol in China for the production of olefins, should support methanol prices globally during the second half of the year," said Omar Darwazah, the investor resources director for OCI, in an earnings call earlier this month. "Subsequently, we also expect prices in the United States to be impacted positively."
China accounts for 43% of global methanol demand, according to Methanex Corporation (NASDAQ:MEOH) (Vancouver, British Columbia).
Industrial Info's VP of Chemicals Research, Trey Hamblet said: "Globally, methanol demand continues to increase for use as a fuel component and feedstock for olefins. The long-term demand outlook, combined with low-cost natural gas feedstock here in North America, is driving a significant wave of capacity projects domestically. Based on the number of new units being proposed in the U.S. right now, the U.S. could become a net exporter of methanol in the coming five to 10 years."
Among the North American methanol projects tracked by Industrial Info are 10 big spenders found at seven sites:
$1.85 Billion: Yuhuang Chemical's Three-Phase Methanol Plant in Saint James, Louisiana
Yuhuang Chemical Incorporated (Houston, Texas), a subsidiary of Shandong Yuhuang Chemical (Group) Company Limited (Heze, Shandong), has begun site preparations for its long-anticipated methanol-production complex on the Mississippi River in Saint James, Louisiana. The first phase of the project, slated to kick off in second-quarter 2016, involves the construction of a 1.9 million-ton-per-year unit. The second phase, set to begin construction in early 2018, will create a second methanol unit to bring total capacity to 3.3 million tons per year. A third phase, unlikely to begin construction until at least mid-2020, involves constructing a methanol derivatives plant that will be used to produce intermediate chemicals.
More than two-thirds of the methanol produced will be exported to China. Most of the remainder will be shipped by barge and rail to North American customers, with a small portion to be used as captive feedstock for the third-phase derivatives units.
Earlier this month, Yuhuang Chemical announced it would transport gas to the methanol complex on the Transcontinental Gas Pipeline, owned by Williams Companies Incorporated (NYSE: WMB) (Tulsa, Oklahoma). And the effects can be felt outside Louisiana; Yuhuang already is adding staff to its corporate office in Houston, and expects to add more as the project progresses. The project is Louisiana's first major foreign direct investment by a China-based company.
For details on the three-phase project, see Industrial Info's project reports on Phase I, Phase II and Phase III.
$3.7 Billion: OCI Partners' Methanol Unit Addition near Beaumont, Texas
At OCI's Beaumont complex, the company plans to construct and install a 1.75 million-metric-tonne-per-year methanol unit in the $2.2 billion first phase of the project. In the second phase, which has an estimated investment value of $1.5 billion, the company plans to install a 22,000-barrel-per-day (BBL/d) methanol-to-gasoline unit.
For details on the project, see Industrial Info's project reports on Phase I and Phase II.
Other high-value methanol projects tracked by Industrial Info include:
$1.8 Billion: Canadian Methanol Corporation's Sundance Methanol Plant in Chetwynd, British Columbia
For details on this construction project, see Industrial Info's project report.
$1.5 Billion: Chemours Company LLC's Methanol Unit Addition in Belle, West Virginia
For details on this construction project, see Industrial Info's project report.
$1.3 Billion: Zero Emission Energy Plants Limited's South Louisiana Methanol Plant in Saint James, Louisiana
For details on this construction project, see Industrial Info's project report.
$1.3 Billion: G2X Energy Incorporated's Methanol Plant in Lake Charles, Louisiana
For details on this construction project, see Industrial Info's project report.
$1.3 Billion: Secure Energy Incorporated's Methanol Plant in Paducah, Kentucky
For details on this construction project, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
