IGP Methanol LLC, which has an air permit in hand to build what could be the world’s largest methanol production facility in Plaquemines Parish, LA, on Wednesday added two Chinese partners to help build two plants, each capable of producing 1.8 million tons/year.
Houston-based IGP in January said it had been granted Title V air permit by the Louisiana Department of Environmental Quality for the Gulf Coast Methanol Park, to be built near Myrtle Grove.
State-owned China Ocean Shipping (Group) Co., i.e. Cosco, a shipping and logistics supplier, is joining with Jinguotou (JGT) to help construct the two plants, IGP said. No financial details were disclosed.
"The project will assure long-term stable and low-priced pure methanol for JGT's MTO projects as well as supply ultra-clean fuels to China, from abundant U.S. natural gas resources,” said IGP Methanol Chairman James S. Lamoureaux.
The methanol would supply feedstock for JGT’s methanol-to-olefins facility at China’s Jin Zhou Port. The companies signed a memorandum of understanding (MOU) to advance their plans.
“The cooperation with IGP and JGT brings opportunity for Cosco to access and participate in the new ‘Green Energy Revolution Market,’” which China is advancing. “It is a key step for Cosco to move toward new clean transportation fuels, promoting the transformation and upgrading of traditional businesses for Cosco Energy Transportation, while providing strong support for IGP Methanol and JGT methanol distribution,” IGP said.
According to IGP, methanol is the fastest-growing “new energy” fuel in China, as it is being used to replace coal in industrial boilers.
In addition to the MOU, the companies “also intend to discuss the feasibility of building new shipping vessels for the project, which can run on methanol,” IGP said.