Houston — Yuhuang Chemical, a wholly owned subsidiary of Shandong Yuhuang Chemical Company, Ltd., has entered into an offtake agreement with Koch Methanol for the supply of methanol from its St. James Parish, Louisiana facility, the company said.
"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," the statement said Thursday.
The 1.7 million mt methanol facility in St. James Parish is currently under construction. The project broke ground in January 2017 and is estimated to cost $1.85 billion. Commercial production from the facility is expected to begin in mid-2020, the company said.