MGC studies Aust methanol

04 September 2000 00:00  [Source: ACN]

Mitsubishi Gas Chemical (MGC) has embarked on a pre-feasibility study for a methanol project in Western Australia. The Japanese major expects the study to be completed by the end of this year.

MGC earlier said that it was attracted to the abundant gas resources in Western Australia. However, it had no plans to conduct a study for a methanol project in the state due to the lack of available gas pipelines (ACN 12 June, p32).

A source close to the project said representatives from MGC visited Western Australia in June to re-assess the state as a potential site for the project. He added that MGC now appears more interested in pursuing this project and is obtaining information regarding the project, which is promoted by the Western Australian government, from Itochu Corp in Perth. Itochu and MGC are part of a Japanese consortium in Saudi Methanol Co.

One possible project site is the King Bay/ Hearson Cove on the coast of Burrup Peninsula. There are currently two projects proposed for this site: Plenty River and Chambal Fertilisers and Chemicals' ammonia-urea project; and Syntroleum's gas-to-liquids conversion project.

Another possible site is West Intercourse Island on the coast of the Burrup Peninsula, where Shell and Dow Chemical are planning a cracker joint-venture project.

MGC has yet to decide on the capacity of the plant. If the project is feasible, MGC plans to export the bulk of the methanol output to Asia to replace exports from its joint-venture methanol plant in Saudi Arabia.

Western Australia may have almost lost Methanex and Saturn Methanol as potential investors for a methanol project in the state. Methanex had initially considered Western Australia for a 3m tonne/year methanol project but has since shifted its focus to evaluation of a plant of similar scale near Darwin, Northern Territory (ACN 13 Mar, p27). Saturn Methanol's plans for a methanol project in Western Australia are unclear following its 100% acquisition by Methanex.

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