Mitsubishi commits to Trinidad methanol/DME plant

OREANDA-NEWS. A consortium led by Japanese trading firm Mitsubishi has made a final investment decision to develop a 1mn t/yr methanol and 20,000 t/yr dimethyl ether (DME) project in Trinidad and Tobago after securing financial support from the Japanese government and a commercial bank.

The consortium comprises Mitsubishi, chemical firm Mitsubishi Gas Chemical (MGC) and engineering firm Mitsubishi Heavy Industries (MHI). The firms, together with local partners state-controlled National Gas and private-sector Massy, have won \\$485mn in project financing from the state-owned Japan Bank for International (JBIC) to develop the \\$990mn Caribbean Gas Chemical project. The project will be co-financed by the Bank of Tokyo-Mitsubishi UFJ, taking total funding to \\$693mn.

The companies plan to complete construction of the chemical plants at La Brea in southwest Trinidad and Tobago by the end of 2018 and start operations by March 2019. Methanol production will be globally marketed by Mitsubishi, MGC and Massy. The project will also work with the Trinidad and Tobago government to promote the use of DME as a substitute for diesel in the domestic market and other Caribbean countries. DME, produced from natural gas or coal, can also be used as a substitute for LPG.

The Japanese consortium owns 70pc of the project, with 26.25pc stakes held by Mitsubishi and MGC and 17.5pc by MHI. National Gas has 20pc and Massy holds the remaining 10pc.

Japan is entirely dependent on imports for its methanol needs and is looking to diversify import sources to ensure stability of supplies. Mitsubishi and MGC have teamed up to expand their global methanol presence, particularly in Europe, the US and South America. The firms have already invested in a methanol production venture in Venezuela that produces 1.6mn t/yr.