A company owned by Koch Industries is now the majority owner and managing member of a $1.85 billion methanol production complex under construction in St. James Parish.
The move comes in a recapitalization of YCI Methanol One LLC, a joint venture between Koch Methanol Investments LLC (Koch Methanol) and Yuhuang Chemical Industries Inc., a wholly owned subsidiary of Shandong Yuhuang Chemical Company.
“Koch Methanol … believes in the significant opportunities being created,” said Jim Sorlie, vice president of Koch Methanol Investments. “Consequently, Koch Methanol has decided to acquire a larger equity stake in the Joint Venture.”
As part of its original investment, affiliates of Koch Methanol received the exclusive methanol offtake rights from the new facility—expected to be as high as 1.7 million metric tons per year—as well as the rights to construct, own, and operate the methanol terminal assets to facilitate the outbound flow of methanol via marine, rail, and truck logistics.
The complex is on track for an on-budget Phase I project completion in the third quarter of 2020. Additionally, YCI Methanol One LLC is evaluating an expansion that would more than double the production of methanol at the site.
YCI is building a methanol complex on more than 1,200 acres the Company purchased along River Road, between the Mississippi River and La. 3127, in 2015 and on the former site of the old St. James High School in St. James Parish. Construction of the $1.85 billion complex began in January 2017. Yuhuang Chemical first announced the St. James project in St. James Parish, La. in 2014.
Koch Methanol LLC is a subsidiary of Koch Ag & Energy Solutions, LLC with offices in China, Houston, and Kansas.