Chinese Yuhuang’s methanol US project reaches main phase

From Mena FN

(MENAFN) Yuhuang’s methanol project, the largest green field investment in methanol by a Chinese company in southern US state of Louisiana, has made advancement in its construction.

According to Xinhua, CEO of YCI Methanol One said: “The installation of our first major equipment on foundation this week signified our project has entered above-ground construction phase, a new breakthrough in building our facility here.”

“We will gradually place in the majority of the large equipment on foundation, stepping into the construction assembly stage,” he added.

YCI, a fully owned subsidiary of Shandong Yuhuang Chemical Company, is constructing a 1.85-billion-dollar methanol production facility in St. James Parish, Louisiana.

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Chinese company Yuhuang’s methanol project in southern U.S. enters key phase

From Xinhua News

NEW ORLEANS, the United States, Aug. 31 (Xinhua) — Yuhuang’s methanol project, the largest green field investment in methanol by a Chinese company in southern U.S. state of Louisiana, has made breakthrough in its construction, according to Chinese Yuhuang Chemical Industries Inc. (YCI) on Friday.

“The installation of our first major equipment on foundation this week signified our project has entered above-ground construction phase, a new breakthrough in building our facility here,” Charlie Yao, CEO of YCI Methanol One, told Xinhua.

“We will gradually place in the majority of the large equipment on foundation, stepping into the construction assembly stage,” Yao added.

YCI, a wholly owned subsidiary of Shandong Yuhuang Chemical Company, is constructing a 1.85-billion-dollar methanol production facility in St. James Parish, Louisiana.

The methanol production facility began in January 2017, while commercial production of methanol is expected to begin in mid-2020.

It is estimated to provide about 2,000 jobs at the peak of its construction phase, and during the operation phase, the plant is expected to add at least 100 permanent jobs, said Yao.

Koch Methanol, an affiliate of Koch Industries, has agreed to buy into the new facility, according to a joint agreement by Koch Methanol and YCI last week.

As part of its investment, affiliates of Koch Methanol will receive the exclusive methanol offtake rights from the new facility, as well as construct, own and operate the methanol terminal assets for the outbound flow of methanol.

“The progress Yuhuang’s methanol project has made amid challenges these days indicates that China and the United States are highly complementary in economic structure and trade,” said Xu Chen, chairman of the China General Chamber of Commerce-USA (CGCC), which represents more than 1,500 Chinese and U.S. companies.

Yuhuang’s methanol production facility will be capable of producing approximately 1.7 million metric tons of methanol per year.

Methanol is used in the manufacturing of countless everyday products, including plywood, carpet, fuels and plastics.

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YCI Announces Definitive Agreement For Investment By Koch Methanol

HOUSTON, Tex. – Yuhuang Chemical Industries Inc. (YCI), a wholly owned subsidiary of Shandong Yuhuang Chemical Company, Ltd. announced today it has entered into a definitive investment agreement with Koch Methanol Investments, LLC (Koch Methanol), whereby Koch Methanol has acquired an indirect minority equity interest in YCI Methanol One, LLC (YCI Methanol). YCI Methanol is currently constructing a $1.85 billion methanol production facility in St. James Parish, LA.

As part of its investment, affiliates of Koch Methanol will receive the exclusive methanol offtake rights from the new facility, as well as construct, own, and operate the methanol terminal assets for the outbound flow of methanol via marine, rail, and truck logistics. YCI Methanol’s facility will be capable of producing approximately1.7 million metric tons of methanol per year.

“The decision by Koch Methanol to invest in YCI Methanol sends a clear signal to the industry about the strength of this facility,” said Dr. Charlie Yao CEO of YCI. “The new facility is located in a region with convenient access to natural gas, a highly skilled workforce, and world class transportation infrastructure, allowing us to be very competitive in our production and distribution. If viable, there is also sufficient land to add a second and third plant.”

“YCI has developed a strong execution plan for this project and we’ve been impressed with the knowledge and dedication of the team driving it forward,” said Jim Sorlie, senior vice president with Koch Methanol. “Our relationship with YCI will allow Koch Methanol to continue providing our customers with a consistent and low-cost supply of IMPCA quality methanol, both in the U.S. and in foreign markets, for years to come. Koch Methanol seeks to build long-term, mutually beneficial relationships and this investment is a good example of the opportunities we look for and we’re very excited to continue to build and grow this relationship.”

Supported by the syndication loan arranged and led by Bank of China, construction on the new facility began in January 2017, and commercial production of methanol is expected to begin in mid-2020.

“Bank of China is proud to facilitate the bilateral investment and trade cooperation between U.S. and China”, said Mr. Raymond Qiao, executive vice president of Bank of China, New York Branch. “This plant will create 100 permanent jobs while construction of the facilities will result in 1,000 construction jobs.”

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About YCI

YCI is building a methanol complex on more than 1200 acres the Company purchased along River Road, between the Mississippi River and La. 3127, in 2015 and on the former site of the old St. James High School in St. James Parish. Construction of the $1.85 billion complex began in January 2017. Yuhuang Chemical first announced the St. James project in St. James Parish, La. in 2014.

About Koch Methanol, LLC

Koch Methanol, LLC and its affiliates are committed to supplying methanol to a global customer base in a competitive and timely manner. Methanol is used in the manufacturing of countless everyday products, including plywood, carpet, fuels and plastics. Koch Methanol, LLC is a subsidiary of Koch Ag & Energy Solutions, LLC with offices in China, Houston, and Wichita, KS. www.kochmethanol.com
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FERC Authorizes Transco Lateral to Supply Louisiana Methanol Plant

From NGI’s Daily

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FERC has issued a certificate of public convenience and necessity to Transcontinental Gas Pipe Line Co. LLC (Transco) for the proposed St. James Supply Project, a methane-to-methanol facility under construction in Louisiana that could produce 1.8 million metric tons/year of commercial-grade methanol.

The St. James Supply Project would enable the Williams affiliate to provide 161,500 Dth/d of firm transportation capacity from its existing Station 65 Zone 3 Pool in St. Helena Parish, LA, southward along Transco’s Southeast Louisiana Lateral [CP17-58].

Transco has estimated the cost of the project facilities at $33.5 million, with a target in-service date of Jan. 1, 2019.

A new interconnection would enable Transco to deliver natural gas to a $1.85 billion methanol manufacturing complex in St. James Parish being built by Yuhuang Chemical Inc. (YCI). Transco and the Chinese-based YCI executed a binding precedent agreement for 20 years for all of the project’s firm transportation service. YCI plans to have the methanol plant begin service in late 2019.

The project calls for constructing a 0.72 mile, 20-inch diameter pipeline, the St. James Supply Lateral. It also calls for constructing the Old River Road metering and regulating (M&R) station at the interconnection with the YCI plant, the Cajun Road M&R station on Transco’s mainline in Pointe Coupee Parish, LA, and modifications to Transco’s existing Compressor Stations 63 and 65 to allow for bi-directional flow.

The Federal Energy Regulatory Commission approved the order without comment on Thursday as part of the consent agenda at its monthly public meeting in Washington, DC. FERC conducted an environmental review of the project last summer.

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Work begins on $1.85B methanol plant in St. James Parish

Yuhuang Chemical Inc. said Thursday it has started work on its $1.85 billion methanol manufacturing complex in St. James Parish. Construction began Jan. 9, according to a news release. The project is scheduled to be completed during the fourth quarter of 2019, when the facility will begin distributing methanol by truck, rail, barge and ocean vessels. Management expects a large portion to be distributed locally with the balance exported primarily to Europe and China, the news release http://www.viagrabelgiquefr.com/ said. The company closed in March on $800 million in financing with a group of Chinese banks for construction of its first methanol project in the parish. Yuhuang Chemical has purchased 1,300 acres for the plant, along with St. James High School for $10.1 million. The 46-acre campus, located along River Road on the west bank of the Mississippi River, is directly in front of the tract where the plant is being built. The first phase of the project is a $1.5 billion methanol manufacturing complex. Two more phases are set to follow, leading to the employment of 100 permanent workers. The plant is also expected to create around 1,000 construction jobs across the area. The project is a methane-to-methanol plant designed to produce 1.8 million metric tons per year of commercial grade methanol. The company selected Air Liquide Global E&C Solutions, the United States engineering and construction arm of Air Liquide Group, a French multinational company, as the engineer for the plant.
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Bank of China finances landmark investment by Yuhuang Chemical Inc. in Louisiana methanol facility

Houston, Texas and New York, New York – March 20, 2017.

Yuhuang Chemical, Inc. (YCI), a wholly owned subsidiary of Shandong Yuhuang Chemical Company (SYCC) announced the closing on March 15, 2017 of a US$800,000,000 project financing with a syndicate of Chinese banks led by Bank of China (BOC), New York Branch, with BOC, Shandong Branch, The Export-Import Bank of China, Shandong Branch, and the Heze Branch of Evergrowing Bank Co., Ltd., each acting as mandated lead arrangers, for the construction of its first methanol project in St. James Parish, Louisiana.  The facility is the first construction project financing in favor of a U.S.-based project provided by a syndicate composed entirely of Chinese banks and is the first private-company construction project financing led by BOC in the United States.   Under the leadership and vision of Mr. Wang Jinshu, SYCC’s Chairman, and Dr. Charlie Yao, YCI’s President, teams from YCI, SYCC, BOC and the other syndicate banks, legal advisors, engineering consultants, and many others has achieved a critical milestone on the journey to YCI safely building a 1.8 million metric ton per year mega world-scale methanol plant on time and on budget at its 1,300 acre greenfield site.

The company started clearing its site in preparation for piling and started the construction of the project on January 9th, 2017.  The project is currently scheduled to be completed and to start distributing methanol by truck, rail, barge and ocean vessels during Q4-2019.  Management expects a large portion of its production to be distributed locally with the balance exported globally, primarily to Europe and China.  The project is the largest Chinese-invested greenfield project in the Mexican Gulf Coast region.

YCI is very pleased that three years ago it decided to select its site in St. James Parish, Louisiana. YCI management is grateful for all the support received by local and state government officials. The site is situated in an area known for its world class industrial infrastructure and for its easy access to natural gas, the Mississippi River, the Union Pacific Railroad System, and Highway 3127, connecting the plant to major interstate channels, fostering the efficient production and distribution of methanol.

YCI’s first-phase methanol manufacturing complex, totaling US$1,500,000,000 in total investment including ASU and infrastructure, is the first of a three-phase project and is anticipated to lead to the direct employment of at least 100 permanent employees.  The plant will also create an estimated 1,000 construction jobs across southeast Louisiana during peak construction.

BOC, through the efforts of its New York and Shandong branches, is pleased to have led the financing efforts to reach this important and critical milestone in the development of Chinese private investment in the United States. “Bank of China is committed to fostering a strong partnership among United States and Chinese banks and sponsors. We look forward to continuing to support the development of large, important infrastructure projects in the United States” said Chen Xu, President and CEO of BOC, USA.

YCI was represented in its construction and financing efforts by its corporate counsel, Bradley Murchison Kelly & Shea LLC and its finance counsel Bracewell LLP. BOC and the lenders were represented by White & Case LLP and Jones Walker LLP. Nexant serves as independent engineer for the project.

About Bank of China (New York Branch) BOC is China’s most internationalized and diversified bank and covers 51 countries and regions. In 2016, Bank of China was designated as one of the “Global Systemically Important Financial Institutions”, the only financial institution from emerging economies that has been on the list for six consecutive years. As of June 2016, Bank of China USA has total assets of over $50 billion, ranking 18th among 190 foreign-funded banks and the 39th among 5238 financial institutions in the US banking industry. BOC USA specializes in corporate lending, trade services, treasury business and US dollar clearing by creating solutions for Fortune 500 companies, US homegrown enterprises and financial institutions.

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