INEOS Acetyls and Sandpiper Chemicals have entered into a collaboration to develop a low-carbon methanol facility in Texas City, Texas, the companies announced on Wednesday.
Under the agreement, INEOS will take an equity stake in the Sandpiper and become an anchor offtaker for the planned facility, which will be located on INEOS’ Texas City site and is expected to produce around 1.1 million tonnes per year (tpy) of low-carbon methanol using natural gas combined with carbon capture technology.
INEOS expects to consume up to 300,000 tpy of the output for its acetic acid operations, integrating the new
The project is scheduled to enter the FEED phase in Q2 2026, and the partners are targeting an FID in 2027. Total investment is estimated to reach approximately USD 1.7 billion, with first production anticipated in 2030.
The development leverages Texas City’s established petrochemical infrastructure, access to deep-water ports and skilled workforce, positioning it as a competitive hub for large-scale energy and chemical projects along the US Gulf Coast.
“Low carbon methanol is increasingly recognised as a critical fuel and feedstock for the maritime, chemical, and energy sectors. INEOS is pleased to support Sandpiper’s development of this facility at our Texas City plant as it will position us at the forefront of a rapidly growing global market for sustainable fuels,” said INEOS business director Declan Sealy.
INEOS is a manufacturer of petrochemicals, speciality chemicals and oil products with operations in 27 countries. Houston-headquartered Sandpiper is a developer of low-carbon methanol manufacturing facilities. The Texas City development will be its third methanol development.
supply into its existing value chain.