Ineos, Sandpiper Chemicals Team on $1.7B Low-Carbon Methanol Site in Texas

Ineos Acetyls and Sandpiper Chemicals announced a strategic collaboration to develop a low-carbon methanol production facility at Ineos’ Texas City, Texas site, with a total estimated investment of approximately $1.7 billion.

 

According to the companies, the facility will use natural gas with carbon capture and storage technology targeting a capture rate of 97% of process CO₂ emissions. Ineos will become a shareholder and anchor customer of Sandpiper, consuming up to 300,000 tons per year of the facility's output for its acetic acid production.

 

The project is expected to enter the front-end engineering and design phase in the second quarter of 2026, with a final investment decision targeted for 2027 and first production anticipated in 2030. The facility is projected to create approximately 1,500 construction jobs at peak activity and 25 permanent positions upon commissioning.

 

"Low carbon methanol is increasingly recognized as a critical fuel and feedstock for the maritime, chemical, and energy sectors," said Declan Sealy, business director at Ineos Acetyls. "Ineos is pleased to support Sandpiper's development of this facility at our Texas City plant as it will position us at the forefront of a rapidly growing global market for sustainable fuels."

 

According to the announcement, the Texas City location was selected in part for its established petrochemical infrastructure and deep-water port access to major Gulf of Mexico shipping lanes. Global methanol demand exceeds 100 million metric tons annually, according to Ineos, with demand for lower-carbon methanol expected to grow driven by marine fuel decarbonization mandates and chemical manufacturing applications.

 

The Texas City announcement comes alongside other recent portfolio activity at Ineos. Earlier this month, Ineos Inovyn agreed to sell its chlor-alkali operations in Italy to Esseco Industrial, including production sites supplying caustic soda, chlorine and sodium hypochlorite to multiple industrial sectors. The company also previously announced investments to upgrade operations at its Grangemouth, Scotland, site to improve efficiency and emissions performance.