Methanol is a colorless, flammable liquid that is used as a key feedstock for various chemicals and fuels. The global methanol market is primarily driven by its increasing use in the production of formaldehyde, acetic acid, and methanol-to-olefins (MTO) and methanol-to-propylene (MTP) processes. Growing demand for petrochemicals and transportation fuels, particularly in developing economies, is also boosting the demand for methanol. The use of methanol as an alternative fuel source in the transportation sector is expected to increase significantly, particularly in China, where methanol is being used as a gasoline substitute. However, the market growth is also hindered by factors such as the fluctuating prices of crude oil and natural gas, as well as the hazardous effects of methanol on human health and the environment.
Top Companies in the Methanol Industry:
1. BASF SE
BASF SE is a German chemical company founded in 1865, with headquarters in Ludwigshafen, Germany. The company operates in more than 80 countries and has a strong presence in the methanol market through its subsidiary BASF-YPC, which produces methanol in China. In 2020, BASF announced plans to invest €90 million in a new methanol plant in China, which is expected to start production in 2022.
2. Celanese Corporation
Celanese Corporation, founded in 1918 and headquartered in Texas, USA, is a leading producer of acetyl intermediate chemicals, including methanol. The company operates in 18 countries and has a strong presence in the Asia-Pacific region. In 2021, Celanese announced a joint venture with Mitsui & Co., Ltd. to produce methanol in Singapore, with a production capacity of 1.3 million tons per year.
3. Methanex Corporation
Methanex Corporation, founded in 1968 and headquartered in Canada, is the world's largest producer and supplier of methanol, with production facilities in Canada, Chile, Egypt, New Zealand, Trinidad and Tobago, and the United States. In 2020, the company announced a joint venture with Mitsubishi Gas Chemical Company to build a methanol plant in Louisiana, USA, with a production capacity of 1.8 million metric tons per year.
4. Mitsui & Co., Ltd.
Mitsui & Co., Ltd., founded in 1947 and headquartered in Tokyo, Japan, is a diversified global trading and investment company that operates in 66 countries. The company is involved in the production, trading, and marketing of methanol, and has announced several joint ventures and acquisitions in the methanol market in recent years. In 2021, Mitsui & Co. announced a joint venture with Celanese Corporation to produce methanol in Singapore.
5. Petroliam Nasional Berhad (Petronas)
Petroliam Nasional Berhad (Petronas) is a Malaysian oil and gas company founded in 1974, with headquarters in Kuala Lumpur, Malaysia. The company is involved in the production and marketing of methanol, and operates a methanol plant in Labuan, Malaysia. In 2021, Petronas announced plans to build a new methanol plant in Sarawak, Malaysia, with a production capacity of 1.7 million metric tons per year.
6. SABIC
SABIC, headquartered in Riyadh, Saudi Arabia, is a global chemical company founded in 1976. The company is involved in the production and marketing of methanol, and operates a methanol plant in Ibn Rushd, Saudi Arabia. In 2021, SABIC announced plans to increase its methanol production capacity to 9 million metric tons per year by 2025.
*Definition- Methanol is a colorless liquid chemical with the formula CH3OH. It is commonly used as a solvent, fuel, and raw material in the production of chemicals such as formaldehyde and acetic acid.
