China, Argentina to produce methanol

The Argentine government and the Chinese province of Shaanxi have signed an agreement to develop a methanol plant and energy generation in the Patagonian province of Tierra del Fuego, a report said. Roberto Croccianelli, economy minister for the province, revealed that Tierra del Fuego Energía y Química, the company to be established as a result of the accord will remain under Shaanxi control. Plans call for investing US$500 million to construct a 700,000 ton per year methanol plant and generate 100 megawatts of electricity, as well as install a 220 kilometer high tension cable to interconnect Río Grande and Ushuaia. The agreement is subject to the approval of the Tierra del Fuego provincial government. “The Argentine methanol market will be satisfied quickly because it is small. There will be no problems in exporting production,” Croccianelli said. (August 19, 2008)