Mitsubishi Gas in methanol supply agreement from Transition’s Pacifico Mexinol project
Transition Industries LLC announced that it has signed a Letter of Intent (LOI) with Mitsubishi Gas Chemical Company, Inc. (MGC) to enter into a long-term methanol supply agreement, whereby Transition Industries intends to supply MGC approximately 1 million tonnes/year of ultra-low carbon methanol from its Pacifico Mexinol project, a 6,145 tonnes/day methanol production facility near Topolobampo, Sinaloa, Mexico, expected to be in operation in 2028.
Transition Industries is jointly developing Pacifico Mexinol with the International Finance Corporation (IFC), a member of the World Bank Group. The terms of the LOI were not disclosed.
When it initiates operations, Pacifico Mexinol is expected to be the largest single ultra-low carbon chemicals facility in the world – producing approximately 350,000 tonnes of green methanol and 1.8 million tonnes of blue methanol annually from natural gas with carbon capture.
Rommel Gallo, CEO of Transition Industries, commented: “We are pleased to announce our Letter of Intent for a long-term Methanol Sales Agreement with Mitsubishi Gas Chemical Company, one of the leading manufacturers and marketers of chemicals in the world. We are honoured to work with MGC in our joint efforts to address climate change and supply the Pacific Basin with ultra-low carbon methanol. Our engagement with MGC is the result of Macquarie Commodities Trading’s efforts to facilitate offtake agreements with world-class customers under our Master Services and Marketing Agreement (MSMA). Through our collaboration with our key stake holders, Transition Industries is at the forefront of advancing the global adoption of low carbon intensity chemical feedstocks.”
Masahiko Naito, Division Director, C1 Chemicals Division for Mitsubishi Gas Chemical Company, said: “As one of the major producers and suppliers of methanol globally, Mitsubishi Gas Chemical prioritizes the acceleration to lower carbon intensity of our methanol supply and aims to contribute to a sustainable world. I’m very excited to work with Transition Industries towards this goal and to bring value to society.”
Transition Industries previously announced it entered into a 15-year MSMA with Macquarie Commodities Trading, an affiliate of Macquarie Group’s Commodities and Global Markets business, where Macquarie is responsible for marketing all the production from Pacifico Mexinol to customers on a global basis, the provisioning of financial hedging services as required by the Project, and supporting the project in commodity planning and contracting for all required feedstock.
Pacifico Mexinol is expected to break ground in early 2025 and begin commercial operations in 2028.
