INEOS Acetyls Blue Methanol Project

INEOS and Sandpiper Chemicals are jointly developing a $1.7 billion low-carbon methanol facility in Texas City, Texas, with planned production capacity of approximately 1.1 million tonnes per year of blue methanol. Located at INEOS’ existing Texas City petrochemical complex, the project will utilize natural gas feedstock combined with carbon capture and storage (CCS) technology targeting capture of approximately 97% of process CO₂ emissions, positioning the facility among the first large-scale blue methanol projects in the United States. INEOS will serve as both an equity partner and anchor offtaker, consuming up to 300,000 tonnes per year of methanol output for its acetic acid operations. The project is expected to enter FEED in Q2 2026, target final investment decision in 2027, and begin commercial operations in 2030. The Texas Gulf Coast location provides access to existing industrial infrastructure, deepwater shipping routes, and growing demand for low-carbon marine fuels and chemical feedstocks.