Business Expansion and Company Acquisition by Market Players such as Celanese Corporation and Others to Foster the Growth of the Global Methanol Market

Methanol is referred to as methyl alcohol which is used extensively in everyday products and industrial applications. It is a highly versatile chemical with efficiency of an energy carrier. The demand of methanol has been increased in recent years as a fuel for manufacturing units. Methanol is also being used in different parts of the world as a resource of clean energy.

Impact Analysis of COVID-19 on the Market

The emergence of COVID-19 pandemic affected the industries small and big across the world. The global economy has experienced slowdown and hence the loss of revenue in almost all the manufacturing units. The global methanol market has also been affected in negative way during the pandemic. Moreover, restrictions on import-export and supply chain have impacted the major countries including China and USA which produce methanol. However, the leading players of the market are developing many strategies to sustain the methanol market growth in the post pandemic period.

Recent Developments in the Methanol Market

According to a report published by Research Dive, the leading players of the global methanol market include Celanese Corporation, Methanex Corporation, BASF SE, SABIC, Mitsubishi Gas Chemical Company, Inc., Petroliam Nasional Berhad (PETRONAS), Valero, Zagros Petrochemical Co., Mitsui & Co., Ltd., and Methanol Holdings (Trinidad) Limited.

These industry players are investing a lot of efforts on the research and development of smart and unique strategies to sustain the growth of the market. These strategies include product launches, mergers and acquisitions, collaborations, partnerships, and refurbishing of existing technology. Some of the recent developments of the market are as follows:

• In April 2019, Celanese Corporation, a global chemical and specialty materials company, expanded the production capacity at its Clear Lake acetyl intermediates manufacturing facility located in Texas, USA. The production will be increased to around 1.7 million tonnes per annum, a surge of 125% from the original capacity. The company has been granted approvals from the board of directors of Fairway Methanol LLC for a second phase expansion.
   
• In April 2020, Celanese Corporation, a global chemical and specialty materials company, announced about the completion of the acquisition of redispersible polymer powders business of Nouryon offered under the Elotex® brand. Celanese is looking forward to integrate the Elotex® product portfolio and production facilities into its global vinyl acetate ethylene (VAE) emulsions business to further contribute to the global product demand.
   
• In April 2021, Origin Materials, Inc., the world leader in carbon negative materials, entered into a partnership with Mitsubishi Gas Chemical, Inc., a global leader in basic and fine chemicals and advanced materials. This partnership is expected to mechanize and manufacture advanced chemicals and materials built on the Origin Materials technology platform.
   
• In August 2021, The National Gas Company of Trinidad and Tobago Limited (NGC) inked a Consolidated Gas Supply Contract (CGSC) with Methanol Holdings (Trinidad) Limited (MHTL), part of the Proman family of companies which is also the largest methanol producer in the world. The agreement is supposed to upkeep operations at the MHTL Methanol Complex, which includes one of the world’s most competent producers of low carbon methanol-- the mega-methanol M5 plant.

Forecast Analysis of Global Market

The global methanol market is projected to witness an exponential growth over the forecast period, owing to the wide usage of methanol for the production of biodiesel, olefins, and the manufacturing of plastic products. Conversely, the rising popularity of ethanol and bioethanol over methanol and the high costs associated with the raw materials used for the production of methanol are expected to hamper the market growth in the projected timeframe.

The increasing application of methanol in industrial sector and the rising popularity of methanol as an alternative to conventional transportation fuels are the significant factors and methanol market trends estimated to bolster the growth of the global market in the coming future. According to a latest report published by Research Dive, the global methanol market is expected to garner $54,630.4 million during the forecast period (2022-2030). Geographically, the Asia-Pacific region of the methanol market is estimated to be most dominant by 2030, owing to the rising demand for methanol in countries like India and other for using as a low emission alternative fuel and achieving low carbon mobility in the region. Presently, the methanol production capacity in India is 2 MT per annum.