Taiwan’s CPC Corp to set up methanol and MTBE joint venture in Qatar

In a move to extend presence overseas, Taiwan’s CPC Corp has expedited oil-exploration projects in Chad, Kenya and Libya and has decided to increase investments of US$500 mln to augment methanol and MTBE (methyl tertiary butyl ether) capacity at Qatar Fuel Additives Co. (QAFAC). CPC currently holds 20% stakes in QAFAC. CPC plans to increase investments to double production capacity to 1.6 mln tpa of methanol and 1.3 mln tpa of MTBE. Feedstock is sourced through a contract inked with the Ras Laffan Liquefied Natural Gas Company Limited (II), that ensures a stable supply of natural gas with no impact of the volatility in global prices. As feedstock costs remain steady, and methanol continues to be linked to oil prices, QAFAC could see growth in gross profit margin.