CNOOC Petrochemical (03983) approved 1.2 million tons/year natural gas to methanol project

Zhitong Finance App News, CNOOC (03983) announced that in order to strengthen the comprehensive utilization of natural gas resources, develop and expand the natural gas chemical industry, and enhance the value realization capacity of the entire industry chain, the board of directors has reviewed and approved the feasibility study report of the company's 1.2 million tons/year natural gas to methanol project. The project is located in Dongfang City, Hainan Province, China, and will be implemented by Fudao, a wholly-owned subsidiary of the company.

The project plans to build 1.2 million tons/year natural gas methanol plant and supporting public works and auxiliary facilities. The main source material for the project is natural gas, and the annual utilization volume is about 1,716 billion cubic meters. After the project is completed and put into operation, the annual utilization scale of natural gas will exceed 5 billion cubic meters, and the company's total methanol production capacity will reach 2.6 million tons per year.

The funds for the project will be disbursed from the company's internal resources and external bank loans.

Construction of the project is scheduled to begin in December 2027 and is expected to be officially put into operation in December 2029.

The announcement stated that the project is in line with the national industrial policy guidelines and will help create a pattern for the entire natural gas chemical industry chain. The project has targeted upstream natural gas resources and will give full play to the competitive advantages of CNOOC's upstream and downstream operation collaboration. There is a certain supply gap in the market area where the project is located, so the project market prospects are good. After the completion of the project, the company will form a differentiated competitive advantage characterized by natural gas resources, consolidate the company's market position as one of the largest methanol suppliers in South China, and provide a raw material base for the downstream layout of high-end new materials and high-value chemicals.