India’s Deepak methanol plant in Taloja shut since mid-July

14 August 2012 06:45  [Source: ICIS news]

SINGAPORE (ICIS)--Deepak Fertilizers and Petrochemicals’ 100,000 tonne/year methanol unit at Taloja in India’s Maharashtra state has been shut since mid-July, citing unprofitable production because of high feedstock costs, a company source said on Tuesday.

“The price of natural gas now is $14/mmBTU [million metric British thermal unit] (€11/mmBTU) and it is no longer cost effective to produce,” the source said.

Power generation and fertilizer production take priority in usage of natural gas, which is in short supply in India, the source said.

“All the gas is being channelled to ammonia production,” the source said.

With the market condition unlikely to improve for the rest of the year, Deepak Fertilizer is considering importing methanol to continue selling to domestic customers, the source said.

Other methanol producers in India include Gujarat Narmada Valley Fertilizers Co (GNFC) and Rashtriya Chemicals and Fertilizers.

Methanol is used in the production of formaldehyde, tert-amyl methyl ether (TAME), methyl derivatives such as methyl chlorides and methyl amines, acetic acid, and as solvents in pharmaceutical and paint industries.

India is estimated to import around 1.4m tonnes of methanol in 2012. The country’s methanol demand grows at an annual rate of 5-6%, according to market participants.

($1 = €0.81)

By: Heng Hui
+65 6780 4359

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