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MHTL to partner with G2X, negotiate methanol offtake agreement from G2X methanol-to-gasoline plant

G2X Energy, Inc. and Methanol Holdings Trinidad Limited (MHTL) announced that MHTL intends to partner with G2X Energy to construct the world-scale methanol-to-gasoline (MTG)-ready, methanol production facility being developed by G2X Energy in Lake Charles, Louisiana. (Earlier post.)

MHTL is one of the largest methanol producers in the world with a total capacity of more than 4 million metric tons annually from its five (5) methanol plants located at the Point Lisas Industrial Estate on the twin island Republic of Trinidad and Tobago. The company is the largest supplier of methanol to North America and is also a significant supplier to the European Market.

The Big Lake Fuels LLC facility will produce 1.4 million metric tons of commercial-grade methanol per year and will have the necessary facilities to convert methanol to automotive gasoline in the future. As part of MHTL’s potential investment into G2X Energy and the Big Lake Fuels plant, MHTL will enter into the negotiation of an exclusive offtake agreement to market the entire production of methanol from Big Lake Fuels’ first methanol plant.

The Big Lake Fuels plant will initially produce methanol, and methanol-to-gasoline production will be an option in the future, said G2X Energy President and CEO Tim Vail.

The plant will be located on a 200-acre site on the Calcasieu Industrial Canal off of the main Calcasieu Ship Channel. The site is located adjacent to multiple large natural gas pipelines and industrial electricity connectivity, and affords the option to ship methanol via barge or oceangoing vessel. The site has the capability to support multiple production process trains and has been secured from the Port of Lake Charles under a long-term lease agreement.

The facility will be constructed by the Proman Group under a fixed price EPC contract. Proman, based in Wollerau, Switzerland, has extensive experience building methanol production facilities. The company has built five world-scale plants in Trinidad and Oman similar in design to the Big Lake Fuels plant. The plant will utilize steam reforming and methanol synthesis technologies from Johnson Matthey Davy Technologies Limited. The plant received its air and construction permit from the state of Louisiana on 25 May. Construction is expected to begin in early 2015, after the project obtains the remaining permits and completes initial engineering.


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