INEOS Acetyls and Sandpiper chemicals announce strategic collaboration for the development of a low carbon methanol project in Texas
In the UK, INEOS Acetyls and Sandpiper Chemicals, announced the formation of a strategic collaboration in support of Sandpiper’s low carbon methanol production facility in Texas City, Texas.
INEOS will become a shareholder and an anchor customer of Sandpiper. The project represents a significant milestone in Sandpiper’s commitment to accelerating the clean energy transition and delivering competitively priced chemical feedstocks to global markets.
The low carbon methanol facility will be located on INEOS’ Texas City site, leveraging the region’s established petrochemical infrastructure, deep-water port access, and skilled workforce. Sandpiper’s plant is designed to produce approximately 1.1 million metric tons per annum (MTPA) of low carbon methanol utilizing natural gas with carbon capture, targeting a carbon intensity significantly below the conventional methanol production benchmark. Up to 300,000 tons per year will be consumed by INEOS for its Acetic Acid production.
The project is expected to enter the Front-End Engineering and Design (FEED) phase in Q2 2026, with a Final Investment Decision (FID) targeted for 2027 and first production anticipated in 2030. Total project investment is estimated at approximately $1.7 billion.
Category: Fuels
