Shandong Yuhuang Chemical subsidiary plans US$1.85 bln methanol complex on the Mississippi River

18-Jul-14

A subsidiary of China-based Shandong Yuhuang Chemical Co. Ltd. plans to build a US$1.85 bln methanol manufacturing complex on the Mississippi River in St. James Parish, joining a booming petrochemical industry along the riverfront in Louisiana, as per nola.com. The project would be Shandong Yuhuang Chemical's first major investment in the United States. Yuhuang Chemical Inc. is a newly created North American subsidiary of Shandong Yuhuang Chemical Co.The three-phase project will begin with construction of a methanol plant next to the Plains All-American Pipeline terminal beginning in 2016. The plant is expected to be operational after two years. In future phases, the company plans to build a second methanol plant and a methanol derivatives plant. The two methanol plants will have a combined annual capacity of 3 million metric tons of methanol. Most of the methanol will be shipped by ocean vessel to China for use in Shandong Yuhuang's other chemical operations. About 20 to 30% will be sold to North American customers and shipped by river barge and rail.