OCI’s Resumption Of US Methanol Production Line ‘Positive’ – Analyst
Mona El Shazly, analyst at Pharos Research, commented on the news that the Investors Relations of Orascom Construction Industries (OCI) stated that the methanol production line of OCI Beaumont in North America has commenced operations. The company will start selling its methanol production locally in the US as of September 2012.
El Shazly said this news is positive, adding that the new line is part of OCI’s expansion plan in the fertilizers segment in North America. OCI Beaumont is an integrated ammonia and methanol production facility located in Texas, North America. The ammonia plant has already commenced production in Q1-12 on low capacity, and is on track to reach its full capacity of 0.25m tons per annum (tpa).
The analyst indicated that the methanol plant has a production capacity of 0.75m tpa and was scheduled to commence operations in June 2012. However, the production has been delayed to Q3-12. OCI has signed a long-term off take agreement with Methanex Corporation, the world’s largest supplier of methanol, to sell a portion of its methanol production from the new line.
Mubasher
