Mitsubishi Gas, Mitsubishi Corp Plan Methanol Plant in Caribbean
Stock Chart for Mitsubishi Gas Chemical Co Inc (4182)
The companies are in the final stages of an agreement with the government of the Caribbean nation and Neal & Massy Holdings Ltd., the Japanese companies said in a statement today.
The partners aim to reach a final decision by March and start commercial operation by March 2017, according to the statement.
The initial investment for the plant is estimated to be $850 million, Ryuji Ideno, a spokesman for Mitsubishi Gas Chemical, said by phone today.
Global demand for methanol, currently 60 million tons a year, is expected to increase as much as 5 percent annually in the coming years, according to the statement.
The partners plan to produce 1 million tons of methanol and 100,000 tons of dimethyl ether, the companies said. Methanol is used as a raw material to make products such as adhesives and agrochemicals; dimethyl ether can work as a clean energy substitute for diesel fuel in cars and power generation.
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