West Australianchemical company Coogee has commenced a feasibility study into a methanol plantnear Darwin.
The 350,000tonne per annum methanol plant would be located at Middle Arm industrialprecinct. A final investment decision is expected in Quarter 1 early 2021, with construction commencing soonafter.
The Projectwill cost approximately $500 million and commence operating in 2024, andis estimated to create around 1000 jobs during construction and 350 direct andindirect jobs on an ongoing basis.
Last year ChiefMinister Michael Gunner unveiled the NT Governments 5-Point NT Gas Strategy aimed at driving Governments vision for the Territory as a world class hub forgas production, manufacturing and services by 2030.
Methanol isused as a fuel additive and in the manufacture of products such as textiles andpharmaceuticals.
Coogee are currently working with the NT Governments Gas Task Force as they undertakethese studies and the Power and Water Corporation, and gas owners, on optionsto supply up to 40 TJs of gas per day.
Coogeeowns Australias only methanol plant, which operated for 22 years beforeclosing in March 2016 due to high east coast gas prices.
MiddleArm is already home to the ConocoPhillips Darwin LNG Plant and the INPEXIchthys Onshore LNG Processing Facility.
As stated byChief Minister Michael Gunner:
The TerritoryGovernments focus is on creating jobs for Territorians – this project willsupport over 1000 jobs during construction, and a further 350 direct andindirect jobs during operations, meaning it will create the kind of long termjobs the Territory needs.
“There isenormous opportunity in the Territory to build amanufacturing hub, which will create many hundreds of permanent localjobs. I have long said the Northern Territory can be a world class hub for gasproduction and manufacturing it is a value-add industry right here in the NT.
“Ive met withCoogee and have been encouraging them to invest right here in the Top End.
“They believe inthe Territorys economy and are keen to invest in Territory jobs.”
As stated byCoogee Chief Executive Officer and Managing Director Dr Grant Lukey:
The proposedMethanol Plant will be strategically located in Darwin to take advantage of itsabundant gas supply and its proximity to the south east Asia market. Theproposed plant will use innovative, low-emission technology.