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Louisiana Methanol Plant Would Require 45 Bcf of Natural Gas Per Year

G2X Energy Inc. and Methanol Holdings Trinidad Ltd. (MHTL) are partnering to construct a methanol production facility in Lake Charles, LA, that is projected to use 45 Bcf per year (about 150 MMcf/d) of natural gas feedstock.

The Big Lake Fuels LLC facility will produce 1.4 million metric tons of commercial-grade methanol per year and will have the necessary facilities to convert methanol to automotive gasoline in the future, the partners said.

The plant is to be located on a 200-acre site on the Calcasieu Industrial Canal off of the main Calcasieu Ship Channel. It is adjacent to multiple large natural gas pipelines (both interstate and intrastate) and industrial electricity connectivity, the partners said. The site affords the option to ship methanol via barge or oceangoing vessel and has the capability to support multiple production process trains.

MHTL is expected to be the marketer of the methanol production. "Coupling MHTL's significant presence in the existing methanol markets and their marketing, construction and operational expertise with G2X Energy's proven experience in the U.S. natural gas market and U.S. development and financial markets will ensure successful execution of the project and long-term production of low cost methanol," said G2X Energy CEO Tim Vail.

G2X is a partner with WPX Energy Inc. in the Piceance Basin (see Shale Daily, Aug. 27). Vail told NGI the endeavor will likely supply via a swap arrangement some of the natural gas needed by the methanol plant.

This is not the only such project slated for Louisiana. In October Castleton Commodities International said it would to invest $1.2 billion to develop a methanol manufacturing plant on the east bank of the Mississippi River in Plaquemines Parish, LA (see Daily GPI, Oct. 10).

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