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Major methanol plant construction back on track in Ascension; but less expensive | Business – New Orleans, Louisiana

New Orleans, Louisiana 2021-07-19 16:35:00 –

Methanex Corp, a Canadian methanol manufacturer. The board of directors approved the company’s plans to resume construction work at Ascension Parish after pressing the pause button over a year ago.

Methanex has decided to postpone spending $ 500 million on its third methanol plant in Geismer for 18 months from early April 2020 due to the uncertain global economy during the coronavirus pandemic. ..

The previously planned $ 1.4 billion methanol plant, which is expected to produce 1.8 million tonnes of methanol, reached a final investment decision before the pandemic and associated economic blockade began.

The Vancouver-based company plans to begin producing methanol by the end of 2023 or early 2024, which is slower than previously planned for 2022.

Methanex, the world’s largest producer of methanol, already has two methanol plants in Geismer. The third plant will create 62 permanent jobs, and all three plants are expected to create a total of 230 jobs.

The Louisiana plant is the company’s only major project over the next few years. As a result, the overall plant size has been reduced from $ 200 million to $ 600 million, with total costs from $ 1.25 billion to $ 1.35 billion.

According to the company, “this revised estimate is based on a significant reduction in the project’s execution risk profile.”

The business will spend $ 435 million by the third quarter of this year and an additional $ 900 million after October, but instead of increasing debt, it will build with cash on hand and future cash flow. Provide funding.

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The other two Louisiana facilities were demolished in Chile and relocated to the United States a few years ago.

The average price of methanol has been around $ 430 per ton in recent months, approaching 2018 prices. Between 2019 and 2020, the average price of methanol dropped to nearly $ 200 per ton. industry.

“The outlook for the methanol industry is good, we have a strong financial position to fund the project, the project is significantly less risky and can be completed on time, so the Geismar3 project The right time to resume construction is within budget. “

The company predicts that demand for methanol will increase by 20%, or 16 million tonnes, over the next five years, while the market capacity from existing methanol plants is 14 million tonnes.

According to the company, the Geismer plant is the cheapest in its portfolio and is “one of the lowest CO2 emission intensity profiles in the industry.” The concept of reducing carbon dioxide intensity rather than pure emissions is common in industrial parks, especially as companies often increase capacity year after year to meet customer demand.

Methanex Corp, a Canadian methanol manufacturer. Evaluates all costs, including the $ 1.4 billion methanol plant proposed by Ascension …

Methanex Corp, a Canadian methanol manufacturer. Has postponed a $ 500 million capital investment in a third methanol plant in Geismer …

Major methanol plant construction back on track in Ascension; but less expensive | Business Source link Major methanol plant construction back on track in Ascension; but less expensive | Business

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