China Energy Ltd., a producer of methanol and dimethyl ether (DME), plans to invest US$443 million to triple its methanol production capacity to 750,000 metric tons/year by the end of 2008. The company mainly uses methanol as feedstock to produce DME.
The company plans to boost DME capacity to 3.6 million tons a year by the end of 2009, up from an earlier expansion target of 3.2 million tonnes and a quadrupling from the 900,000 tonnes for this year.
Since its expansion in methanol production is insufficient for its DME plans, the company will buy methanol from other sources to make up the gap.
The company expects China’s demand for dimethyl ether as vehicle fuel to stay strong in the medium term.