Mitsubishi Gas Chemical Co. and Mitsubishi Corp. plan to build a plant to produce methanol and dimethyl ether in Trinidad and Tobago.
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.