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Connell Group and Sino Life to invest $4.5 billion in US Methanol project

Texas and Louisiana race for Chinese methanol project

The Chinese companies Connell Group (Connell) and Sino Life Insurance Corporation (Sino Life) are currently evaluating potential sites in Shoal Point, Texas, and Donaldsonville, Louisiana, to build and operate a world-scale methanol plant in USA.

Based in Jilin, in the northeast of China, Connell is a chemical group already active in the production of methanol derivatives.

To maintain its competitive advantage, the Chinese companies such as Connell investigate all opportunities to access feedstock at the lowest prices.

Connell_Sino-Life_Texas_Methanol_Project_MapSince most of the methanol costs is coming from methane prices, USA is topping the list of the most attractive countries.

Then the concentration of the shale gas production in the east and the south of the country drive all potential investors to Texas and Louisiana.

These two US States benefit from best infrastructures to gather, transport and distribute through multiple pipelines and storage systems the gas to be supplied to potential new comers.

In that respect Connell and Sino Life qualified Shoal Point in Texas and Donaldsonville in Louisiana to invest $4.5 billion capital expenditure in this world-scale methanol facility.

In Texas, Connell and Sino Life are considering a 900 acre site on the Shoal Point Peninsula near by Texas City.

Benefiting from the Texas City Dike channel, Connell and Sino Life could use Port of Texas City infrastructure to ship their methanol production with large carriers designed according to the new Panamax generation.

Connell and Sino Life Methanol project to go fast track  

Since Connell and Sino Life are planning to export all their methanol production to China, they are synchronizing their methanol project with the ongoing expansion of the Panama Canal.

With the expansion of the Panama Canal expected in 2016, Connell and Sino Life will have the opportunity to use the shortest route from the Gulf of Mexico to China with 330 meters long new Panamax-type ships.

Connell_Sino-Life_Texas_Methanol_ProjectIn this perspective, Connell and Sino Life are investing in a fleet of these methanol carriers.

To support the access of these large sizes vessels, Port of Texas City shall require deep water expansion.

In parallel, Louisiana is proposing a similar site in Donaldsonville in order to continue their successful series of successes in attracting foreign investors.

Led by its Louisiana Economical Development (LED) office, the State is proposing site along the Mississippi River with attractive tax break package.

In both cases, Connell ans Sino Life are considering to produce 7.2 million tonnes per year (t/y) of methanol.

Connell and Sino Life are developing this new Texas Methanol or Louisisana Methanol project on fast track with the final investment decision (FID) to take place on mid 2015.

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