Midstream Methanol LLC is building a series of scalable natural gas conversion plants located near customers in the U.S. Midwest, reducing transport costs and benefiting from cheap shale gas feedstock to provide the lowest delivered methanol cost to regional customers.
The business model is driven by North American and worldwide methanol demand, which has grown at 10% a year for a decade, and pairs seamlessly with cost effective, reliable natural gas feedstock emerging in multiple North American production basins.
The Midstream team is developing the blueprint for Plant #1 that will be leveraged for all subsequent plants; our Adaptable Standard Plant Design will reduce costs and risks and schedule using a manufacture-ship-assemble construction model.
Midstream Methanol, a midstream company creating a multi-billion dollar enterprise through natural gas conversion plants, and expanding into terminals and multi-mode transport
Methanol Market Growth
- Methanol is produced from natural gas using proven alcohol synthesis—no technology risk.
- Methanol consumption has grown 10% a year for a decade and will continue at multiples of world GDP, with low carbon, zero sulfur, liquid fuel as one of its fastest growing applications.
- Third party forecasters (e.g. Nexant) predict a 100 million metric tonnes market by 2020, representing more than 100 new methanol plants.
U.S. Methanol Consumers
Methanol consumption in the Midwest PADD2 is 1 million metric tonnes a year—second only to the U.S. Gulf Coast PADD 3. However, unlike PADD3, PADD2 does not currently benefit from local methanol production. Localized production in PADD2 will optimize site selection, storage and transport, and result in the lowest delivered cost of methanol.
Methanol consumers in the U.S. Midwest can benefit from the following strategic advantages:
- Long-term natural gas price advantage
- $65 to $100+ per MT methanol price premium over the U.S. Gulf Coast
- Inexpensive land, labor, natural gas and power
- Most comprehensive rail and logistics network in the United States
- Powerful combination of political, technical and industrial support at local level
If you should have any questions regarding Midstream Methanol, please contact email@example.com or call 512-693-9414