IGP New Methanol Production Complex Under Construction

IGP Methanol is currently developing a new methanol production complex at Gulf Coast Methanol Park in Louisiana, US. The complex is made up of four natural gas-based methanol units with the capacity of 1,800kt/a each. That means that local methanol capacity of IGP Methanol is to reach 7,200kt/a. The complex is planned to be put into operation by the end of 2020, based on the cheap raw material costs on the US Gulf coast and increasing demand for methanol as a clean fuel in the developing world. Half the complex’s anticipated products will be shipped to a methanol to olefins (MTO) unit under development in China’s industrial port of Jinzhou.

The U.S. domestic demand is balanced, so Asia, North America and South America will be the target markets for IGP’s products, especially China. Although the sailing time to Europe will be shorter than to Asia, Europe is not expected to soak up the resources to an extent that a plant at the scale of the IGP project will produce.

The crackdown on pollution has led coal to chemical projects to lose favor with the Chinese government, and methanol offers potential as a cleaner-burning fuel for transportation and heating. IGP wish that the products of Gulf Coast Methanol Park can help some Chinese MTO plants to deal with high feedstock cost and short supply. There is talks of developing methanol storage and transportation bases across China to take in overseas methanol shipments. IPC also hopes that they can boost the promotion of methanol-fueled vehicle, boiler and ship in China.