Transition Industries has signed a letter of intent (LoI) with the Mitsubishi Gas Chemical Company (MGC) for a long-term sales agreement to supply methanol.
Under the MSA, Transition Industries will provide MGC with approximately 1 million tonnes per year of ultra-low carbon methanol from its Pacifico Mexinol project, which has a production capacity of 6,145t per day.
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The proposed facility, located near Topolobampo, Sinaloa, Mexico, will begin operations in 2028.
Transition Industries is developing the Pacifico Mexinol project in partnership with the International Finance Corporation.
The facility will produce an estimated 350,000t of green methanol and 1.8 million tonnes of blue methanol annually from natural gas with carbon capture technology.
Details of the LoI and the MSA have not been disclosed to the public.
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By GlobalDataThe ground-breaking ceremony for Pacifico Mexinol is anticipated to occur in early 2025, with the goal of commencing commercial operations three years later.
Transition Industries CEO Rommel Gallo commented: “We are pleased to announce our letter of intent for a long-term methanol sales agreement with Mitsubishi Gas Chemical Company, one of the leading manufacturers and marketers of chemicals in the world.
“We are honoured to work with MGC in our joint efforts to address climate change and supply the Pacific Basin with ultra-low carbon methanol.”
Mitsubishi Gas Company C1 chemicals division director Masahiko Naito stated: “As one of the major producers and suppliers of methanol globally, Mitsubishi Gas Chemical prioritises the acceleration to lower the carbon intensity of our methanol supply and aims to contribute to a sustainable world.”
In September 2024, Canadian methanol producer Methanex signed a definitive agreement to purchase OCI’s global methanol business for $2.05bn (C$2.78bn).
The acquisition encompasses stakes in two methanol facilities in Beaumont, Texas —one of which also produces ammonia — a low-carbon methanol production and marketing business, and an inactive methanol facility in the Netherlands.
