North America to stop methanol production by 2010

10 May 2007 04:12  [Source: ICIS news]

SINGAPORE (ICIS news)--North American methanol production will cease to exist by 2010, a senior US-based consultant warned on Thursday.

 

The estimated 900,000 tonnes/year of capacity now has very little influence on the global market, said Jim Jordan, president of Jim Jordan and Associates in a paper presented at the 10th International Methanol Producers and Consumers Association (IMPCA) conference in Singapore.

 

"The only influence would be to shut down the remaining capacity before the end of the decade," he said.

 

Former production in the whole of North America stood at more than 7m tonnes/year but is now less than 1m tonnes/year.

 

"Eventually, the outlook for energy prices in North America convinced these producers they could no longer compete with the newer offshore plants with less expensive gas," he said.

 

There are currently only three plants of any significance including a 600,000 tonne/year Lyondell plant in Texas, a 120,000 tonne/year plant in Woodward, Oklahoma, and the 180,000 tonne/year Eastman plant in Tennessee, which is a coal-based plant.

 

Jordan highlighted that Celanese's 850,000 tonne/year plant in Edmonton closed at the end of March this year and predicts two other plants to close between 2008 and 2010.

 

The US' push to ban MTBE, high natural gas prices and the introduction of biofuels has compounded methanol producers’ plight in the region.

 

By: Matt Kovac
+65 6780 4359

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