INEOS Acetyls and Sandpiper Chemicals Partner on $1.7 Billion Low Carbon Methanol Project in Texas
INEOS Acetyls and Sandpiper Chemicals are collaborating on a $1.7 billion low carbon methanol production facility in Texas City. INEOS will be a shareholder and anchor customer, consuming 300,000 tons annually. The plant aims to produce 1.1 MTPA of methanol using natural gas with 97% carbon capture, significantly lowering its carbon footprint. Expected to reach FID in 2027 and begin production by 2030, this project targets the growing demand for sustainable fuels and feedstocks, creating 1500 construction jobs.
INEOS Acetyls and Sandpiper Chemicals, LLC have announced a strategic collaboration to develop a low carbon methanol production facility in Texas City, Texas. INEOS will become both a shareholder and a key anchor customer, utilizing up to 300,000 tons per year of the produced methanol for its Acetic Acid operations. This $1.7 billion project is designed to produce approximately 1.1 million metric tons per annum (MTPA) of low carbon methanol by leveraging natural gas combined with advanced carbon capture and storage (CCS) technology, aiming for a 97% capture rate of process CO2 emissions.The facility will be strategically located at INEOS’ Texas City site, capitalizing on the region’s established petrochemical infrastructure, deep-water port access, and skilled workforce. The project is scheduled to enter the Front-End Engineering and Design (FEED) phase in Q2 2026, with a Final Investment Decision (FID) targeted for 2027 and the first production anticipated in 2030. This initiative addresses the rapidly growing global demand for low carbon methanol, driven by its increasing adoption as a sustainable marine fuel and a critical chemical feedstock. Beyond its environmental benefits, the project is expected to generate significant economic impact, creating approximately 1500 construction jobs and 25 permanent positions, alongside substantial tax revenues for Galveston County and the State of Texas.
