Celanese advances plans for 2nd US methanol plant

CEO Mark Rohr says the Texas company should have a clear view on the proposed project with partner Mitsui & Co later this year. (Celanese)

Interview article by Joseph Chang

COLORADO SPRINGS, Colorado (ICIS)–US-based Celanese is continuing to work with partner Mitsui & Co on a potential second methanol project in the US and should have a clearer view on it by the end of the year, Celanese’s CEO said on Tuesday.

“We’ve done the preliminary engineering and more work is due at the end of the year when we should have an updated business case,” Mark Rohr said in an interview with ICIS on the sidelines of the American Chemistry Council (ACC) annual meeting in Colorado Springs.

Celanese’s first US methanol plant with joint venture partner Mitsui & Co in Clear Lake, Texas, came online in October 2015.

“This would be a replica of that plant as that way we can minimise capital costs,” said Rohr.

The first plant, with capacity of 1.4m tonnes/year, is running full out, he said.

If everything proceeds as planned, the second methanol plant could start up in three to three-and-a-half years, said Rohr, putting the timeframe in the 2019-2020 range.

While there should be more clarity on the second project by the end of 2016, it won’t necessarily be a binary decision as to whether a final investment decision is made, or the project is dropped, he said.

Including the 25% share of its methanol joint venture in Saudi Arabia with SABIC and an affiliate of Duke Energy, Celanese produces around half the methanol it consumes for downstream products, said Rohr.

“We like being in the methanol market. It gives us a handle on the global economic environment as well,” said Rohr.

On the slew of US methanol projects being planned, Rohr said, “A lot more have been announced than will happen. The methanol needs a home, and unlike many others, we have a big sink.”

SMALL IMAGE: Corporate headquarters in Irving, Texas.  (ddp USA/REX/Shutterstock)