Alberta Company Plans New Methanol Plant
Calgary-based Nauticol Energy said October 9 it intends to build a C$2bn (US$1.5bn) world-scale methanol manufacturing facility at Grande Prairie, northwest of Edmonton.
The facility will use about 300mn ft3/day of low-cost natural gas to produce about 3mn metric tonnes/year (mt/yr) of methanol. Alberta’s only other methanol plant, operated by Methanex at Medicine Hat, produces about 600,000 mt/yr of methanol.
The first of three phases of modularised construction is expected to begin in 2019. PCL Construction will fabricate the modules in Alberta and transport them to the plant site, about 10km south of Grande Prairie.
“Nauticol is committed to building value-add industry in the Grande Prairie region,” Nauticol CEO Mark Tonner said. “This is a made-in-Alberta/made-for-Albertans project that will add tremendous economic, environmental and societal benefits both here and around the world.”
Peak construction is expected to generate about 1,000 jobs, while 200 new operating jobs will be created when the facility opens, Nauticol said.
While some of the methanol produced will supply local markets, most will be directed to Asian markets, which account for about 70% of current global demand. A study earlier this year by the Canadian Energy Research Institute (CERI) found that strong demand for methanol in Asia, combined with Alberta’s abundant and low-cost natural gas supplies, offered robust economics for a new methanol plant in the province.
“The growth rate for methanol products is quite high – in the range of 3% to 4% – so this is where we want to look for a sweet spot where there is significant growth and where the competitiveness of those activities in Canada makes a difference,” CERI CEO Allan Fogwill told a Calgary seminar in April 2018 outlining the results of the study.
Nauticol has signed a memorandum of understanding with the Western Cree Tribal Council (WCTC) that is expected to lead to the WCTC becoming an equity participant in the project. The WCTC represents the Duncan, Horse Lake and Sturgeon Lake Cree First Nations in northwestern Alberta.
“Nauticol truly values the meaningful relationships we have developed with the Western Cree Tribal Council,” Tonner said. “Our company is committed to a partnership built on reciprocity, shared knowledge and shared opportunities.”