Nauticol Energy, a private company with a star-studded board of directors, has reportedly announced plans for a methanol manufacturing facility based in Grande Prairie, Alta, which falls in the heart of the province’s most active gas basin.
As per trusted sources, the proposed methanol plant worth $2 billion could aid the province in accomplishing its goal of generating more oil and gas resources within its borders, while it faces severe infrastructure bottlenecks.
If the company builds the project, it will become the second methanol plant in Alberta and propel its petrochemicals vertical, which has always managed to protect important shale gas processing spots like Louisiana and Pennsylvania.
According to sources familiar with the development, the company is working on regulatory processes and plans to make an investment decision by 2019 on a facility that has the capacity of converting 300 million cubic feet of gas per day to 3 million metric tons of methanol on a yearly basis.
The facility located near Grande Prairie is next to a Canadian National Railway line, which can get the plant a direct line heading to Prince Rupert Port and access to Asian markets. Reportedly, the demand for methanol in the Asian region has soared as it is used in the manufacturing of a range of products like plywood subfloors, windshield anti-freeze, and foam.
Sources reported that last year, in a bid to promote more natural gas and petrochemical processing plant within the province, Alberta started a petrochemical diversification program with incentives worth nearly $500 million in royal credits.
Till date, the program has garnered royalty credits to Inter Pipeline Ltd for a propane-to-plastics plant worth $3.5 billion, which is under construction in the north of Edmonton. A similar facility by Pembina Pipeline Corp is expected to decide on its project this year.
After signing the off-take agreements for methanol, Nauticol can begin looking for financiers without any issues, cite sources.