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China To Build Huge Methanol Plant In Texas To Meet Rising Domestic Demand

Jerin Mathew, International Business Times

Chinese firms, Connell Group of China and Sino Life Insurance Co are looking to build a huge methanol production and deep-port export facility in the shale gas-rich US state of Texas.

An oil and gas processing plant fed by local shale wells is pictured along a highway outside Carrizo Springs, Texas

Fracking boom in the US made Texas a natural gas rich state. Reuters

Fund Connell USA Energy and Chemical Investment Corp, the US arms of Connell Group of China and Sino Life, have secured a lease on a 900-acre property at Shoal Point in Galveston Country, Texas, for the purpose.

The companies will begin engineering pre-design and feasibility studies at the site, and are targeting to confirm the project by mid-2015.

“The abundant sources of natural gas in the Gulf Coast region and the expansion of the Panama Canal in 2016 make this location attractive for the production and exporting of methanol in large quantities as feedstock for the growing petrochemical production capacity in China,” Sinolife Chairman Zhang Jun said in a statement.

At peak level, the facility will have a capacity to convert up to 560 million cubic feet of natural gas into methanol daily, and would produce 7.2 million tons of methanol a year for export to China, making it one of the largest such plants in the world.

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