INEOS Acetyls and Sandpiper partner on 1.1 MTPA low‑carbon methanol plant in Texas City
- Sandpiper and INEOS will develop a 1.1 MTPA low‑carbon methanol plant at INEOS Texas City, with up to 300,000 t/y earmarked for INEOS acetic acid production.
- FEED starts Q2 2026, FID is targeted in 2027 and first production in 2030, with total capex about USD 1.7 billion.
- The plant will use natural gas with CCS targeting 97% process CO2 capture and is expected to create ~1,500 construction jobs and 25 permanent roles.
Project summary
INEOS Acetyls and Sandpiper Chemicals will develop a 1.1 MTPA low‑carbon methanol plant on INEOS’ Texas City site; INEOS will be a shareholder and anchor customer, taking up to 300,000 t/y for acetic acid production.
Schedule and investment
FEED is scheduled to start in Q2 2026, with FID targeted in 2027 and first production expected in 2030; total project capex is estimated at about USD 1.7 billion.
Process and environmental controls
The facility will use natural gas with carbon capture and storage, targeting 97% capture of process CO2, and will include best‑in‑class water management and air quality controls.
Market and local impact
Low‑carbon methanol is being pursued for maritime fuel and as a lower‑carbon chemical feedstock; the Texas City location leverages Gulf Coast petrochemical infrastructure, deep‑water port access and shipping lanes; the project is expected to deliver roughly 1,500 construction jobs, 25 permanent roles and generate material tax revenues for Galveston County and the State of Texas.
Developer context
Sandpiper Chemicals, headquartered in Houston, notes this will be its third methanol development and among the first blue methanol projects in the U.S.
Source: INEOS