By
13 min ago 2 min read
British specialty chemical manufacturer INEOS Acetyls (INEOS) and Houston-based chemical company Sandpiper Chemicals (Sandpiper) have partnered to build one of the US’s first large-scale blue methanol production facilities at INEOS’ Texas City site.
The project represents a total investment of approximately $1.7bn and is expected to produce around 1.1 million metric tons per annum (mtpa) of low-carbon – or blue – methanol, with first output targeted for 2030.
The site is expected to enter the front-end engineering and design (FEED) phase in Q2 2026 and will leverage existing petrochemical infrastructure and port access.
A final investment decision (FID) is expected in 2027.
Under the agreement, INEOS will become both a shareholder in Sandpiper Chemicals and an anchor customer for the project.
Peter Nassab, CEO of Sandpiper Chemicals, said, “This venture is a defining step in our strategy to build a lower-carbon methanol portfolio.”
Declan Sealy, Business Director at INEOS, said the development will position INEOS to meet the growing demand for sustainable fuels on the global market.
The Texas City facility will target a 97% carbon dioxide (CO2) capture rate using carbon capture and storage (CCS) technology, with around 300,000 tonnes per year of captured CO2 directed to acetic acid production.
Methanol is one of the world’s most widely traded commodity chemicals, with global demand exceeding 100 million tonnes per annum. Low-carbon methanol is produced using hydrogen and carbon dioxide over a catalyst in a synthesis reactor.
In the synthesis reactor, hydrogen and CO2 react over a catalyst to produce methanol and water. The methanol-water mixture is then distilled to separate it from the other hydrocarbons.
