Eastman close to picking US site for coal plant

11 June 2007 19:14  [Source: ICIS news]

HOUSTON (ICIS news)--Eastman Chemical said on Monday that it was in the process of selecting a site in Texas for a coal gasification plant.

Front-end engineering should begin in a couple of months, and Eastman should soon select a contractor, said chief executive Brian Ferguson during a presentation before JPMorgan Securities.

Ferguson said the plant should begin operations in four years.

Eastman was pursuing the project because of the growing spread between prices for coal and other hydrocarbons, Ferguson said. Eastman expects prices for oil and natural gas to remain high in comparison with coal.

The chemicals produced by the plant include hydrogen gas, methanol and carbon dioxide. Eastman plans to sell the hydrogen gas and use the methanol as feedstock.

The carbon dioxide will be used by other companies for oil recovery, Ferguson said.
By: Al Greenwood
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