10 May 2007 09:26 [Source: ICIS news]
SINGAPORE (ICIS news)--Capital costs for a 1m tonne/year methanol plant have almost doubled to $600m raising the financial bar for producers to make a reasonable profit, warned a US-based methanol consultancy Thursday.
"Approximately, five years ago a 1m tonne/year plant would have been built somewhere in the range of $340m," said Jim Jordan, president of Jim Jordan and associates at the International Methanol Producers and Consumers Association Asian methanol conference in ?xml:namespace>
"This is not good news for consumers because when capital costs go up, prices go up," he said.
The estimate given to producers now for a 1m tonne/year plant is closer to $600m and possible higher said
Rampant construction in the Middle East and
Some senior engineers have also warned the petrochemical industry faces cost increases because of a shortage of skilled workers.
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