Valero Energy Corp. invests in US$700 mln methanol plant at St. Charles refinery near New Orleans

11-Sep-13

Valero Energy Corp. plans to invest US$700 mln in a methanol plant at its St. Charles refinery near New Orleans. Low-cost natural gas will be sourced as feedstock from shale formations. Natural gas is used to produce methanol and has been priced below US$4 per million British thermal units (Btu) for months, down from an average US$9 per million Btu in 2008. The plant, to be completed in late 2015 or early 2016, will produce 1.6 million tons of methanol per year.