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Methanol Chemicals Co. (Chemanol) signed, on Jan. 23, an agreement for preliminary engineering design for the methanol plant expansion with the company that owns the technology for the existing plant.
The company said in a bourse filing that the increase in production capacity of the plant will be used as feedstock for setting up further expansion projects as announced earlier.
The expansion of the methanol plant is considered as a fundamental pillar for the company’s expansion strategy, and will contribute to achieve the objectives of the Saudi Energy Efficiency Program, in addition to having a positive impact in lowering the production costs.
Chemanol will announce any material developments related to these projects in due course in accordance with the relevant laws and regulations.
The expected date of completion for the project will be Q4 2022.
According to data compiled by Argaam, on March 1, 2020, Chemanol obtained the Ministry of Energy’s approval for allocating the required feedstock to expand the methanol plant in order to increase its output by 100,000 tons, bringing the annual production to 331,000 tons.
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