Sector News

Mitsubishi Gas Chemical and partners finalize $1 billion methanol and DME investment in Trinidad

April 13, 2015
Chemical Value Chain
Mitsubishi Gas Chemical (MGC), Mitsubishi Corp. (MC) and Mitsubishi Heavy Industries (MHI) announced today that they have signed an agreement with state-owned National Gas Company of Trinidad and Tobago (NGC) and Massy Holdings (Massy) for the construction of a previously announced methanol and dimethyl ether (DME) manufacturing complex in Trinidad and Tobago. Investment costs have been estimated at $1 billion. The partners have also concluded the engineering, procurement and construction and gas supply contracts as well as land leases for the facilities. Discussions are currently underway with a syndicate of Japanese banks to finalize a loan agreement.
 
The complex will be owned by Caribbean Gas Chemical, a joint venture in which MGC and MC will each have a 26.25% stake, MHI 17.5%, NGC 20% and Massy 10%. It will be built at La Brea and will be designed to produce 1 million m.t./year of methanol and 20,000 m.t./year of DME. Startup is scheduled for October 2018.
 
The methanol produced at the facility will be marketed worldwide by MGC, MC and Massy. The partners will also work closely with the government of Trinidad and Tobago to promote the use of DME as a substitute for diesel in Trinidad and Tobago and in other Caribbean countries. Plant design and construction will be undertaken by MHI.
 
By Natasha Alperowicz
 

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