MOSCOW (MRC) -- Valero Energy Corp.’s previously-announced USD700 million methanol plant, planned at its existing St. Charles Parish, LA, facility, has been shelved indefinitely, said Naturalgasintel.
A spokeswoman for the San Antonio-based mega-independent refiner told NGI this week that "after continued evaluation of the proposed methanol project at St. Charles, Valero does not have plans to move forward at this time."
The methanol plant, announced in 2013 would have produced 1.6 million tons/year of methanol, tapping low-cost natural gas from the nearby Eagle Ford Shale and other basins to make a wide range of products, including paints, solvents, plastics and other consumer goods.
But the project appears to be a casualty of the commodities downturn. After the company told analysts during a conference call last summer to expect a final investment decision by 4Q2015, the methanol project never came up during subsequent earnings calls.
Valero had also been looking for a partner to help shoulder some of the cost of the methanol plant.
As it was written earlier, in February 2015, Valero Energy Partners LP approved the partnership's acquisition of certain businesses from subsidiaries of Valero Energy Corporation. In the transaction, the partnership will receive the outstanding membership interests in Valero Partners Houston, LLC and Valero Partners Louisiana, LLC for total consideration of about USD671 mln.
Valero Energy Corporation is a Fortune 500 international manufacturer and a marketer of transportation fuels, other petrochemical products, and power. It is based in San Antonio, Texas, United States. The company owns and operates 16 refineries throughout the United States, Canada, United Kingdom, and the Caribbean with a combined throughput capacity of approximately 3 million barrels (480,000 m3) per day, 10 ethanol plants with a combined production capacity of 1.2 billion US gallons (4,500,000 m3) per year, and a 50 megawatt wind farm.
MRC