Syngas Energy Plans $360 Million Louisiana Methanol Facility
Syngas Energy Holdings has unveiled plans to pump $360 million in capital investment funds into the construction of a methanol plant in St. James Parish, Louisiana.
After securing permits and making a final investment decision, Houston-based Syngas anticipates beginning construction in the second quarter of 2016, with completion expected at the end of 2018 and an initial production capacity of 500,000 metric tons of methanol per year.
Plans call for the plant to increase production to 700,000 tons per year in a later phase.
Located on the west bank of the Mississippi River, the project will be sited on 130 acres acquired from NuStar Energy, which operates a major crude oil terminal and logistics complex on the Mississippi River.
NuStar also has storage and shipping capabilities for specialty liquids, such as methanol, at the St. James site, where NuStar will provide rail and barge transportation services for the Syngas project. Syngas will build additional storage capacity on its site for truck shipping of its own product.
“The Port of South Louisiana welcomes Syngas Energy to our port. We are pleased to have had a role in having them locate in St. James Parish,” said Executive Director Paul Aucoin of the Port of South Louisiana. “Syngas Energy is joining a long and strong list of companies that are choosing to expand in Louisiana and create high-paying jobs for the people of the River Region.”
With its projected production of 500,000 metric tons of methanol yearly, “it will further propel the Port of South Louisiana’s standing within U.S. commerce and global commerce,” said Aucoin.