China BlueChem (03983) has announced that its board of directors has reviewed and approved the feasibility study report for a 1.2 million tonne per year natural gas-to-methanol project, as part of efforts to strengthen the comprehensive utilization of natural gas resources, expand its natural gas chemicals business, and enhance value realization across the entire industrial chain.
The project is located in Dongfang City, Hainan Province, China, and will be implemented by the company's wholly-owned subsidiary, Fudao Company.
The project plans to build a 1.2 million tonne per year natural gas-to-methanol facility along with supporting utilities and auxiliary infrastructure.
The primary raw material for the project is natural gas, with an annual consumption of approximately 1.716 billion cubic meters.
Once the project is completed and put into operation, the annual natural gas utilization scale will exceed 5 billion cubic meters, and the company's total annual methanol production capacity will reach 2.6 million tonnes.
Funding for the project will be provided through the company's internal resources and external bank loans.
Construction is scheduled to commence in December 2027, with formal production expected to begin in December 2029.
The announcement stated that the project aligns with national industrial policy direction and will help build a full industrial chain layout for natural gas chemicals.
The project has already secured upstream natural gas resources and will fully leverage the competitive advantages of upstream and downstream operational synergies within the China National Offshore Oil Corporation group.
There is a certain supply gap in the market region where the project is located, giving the project favorable market prospects.
Upon completion of the project, the company will develop a differentiated competitive advantage featuring natural gas resources, consolidate its market position as one of the largest methanol suppliers in South China, and provide a raw material foundation for downstream expansion into high-end new materials and high-value chemicals.
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