U.S. Becomes a Global Leader in Methanol Production
August 20, 2019
New Methanol plants continue to be fired up in the U.S., despite the oversupply seen in the domestic Methanol market. The global market, for use in applications such as chemicals, plastics, and fuel, is sparking increased export demand for Methanol, and the low cost of the raw material natural gas makes the U.S. the ideal production location.
The Gulf Coast is home to most of the country’s Methanol plants, due to ease of access to both raw materials and major consumers such as China. The largest production facility in the country, Natgasoline, opened there last summer, with two more plants slated to open on the Gulf by the end of 2020. Big Lake 1 and Yuhuang’s St. James 1 plant will increase total U.S. Methanol capacity by a whopping 45%. Major producer Methanex recently announced their decision to build a third Methanol plant, Geismar 3, to begin operations in 2022. This plant will be dedicated 100% to export Methanol. A Liberty One plant in Brazil was deconstructed, moved, reconstructed in West Virginia, and expects to begin production in early 2020.
With the Asia / China fuel market and MTO (Methanol To Olefins) considered a sure bet for Methanol demand, United States is becoming a global leader in Methanol production, and is fast becoming a net exporter of Methanol.
This significant new production capacity is fueling an oversupply situation in the United States. According to the Methanex price index, Methanol prices are currently at a near three year low, after peaking in November of 2018.
CORECHEM looks forward to supplying your Methanol needs! View our Methanol product offering here.