BP and China create Northwest Innovation Works JV
The UK super major BP and China Academy of Sciences created a cascade of joint venture called Clean Energy Technology Company to run the Northwest Innovation Works joint venture, a newly formed company, to build and operate twin major greenfield methanol plants at Port of Kalama in Washington, and at Port Westward in Oregon, USA.
The newly formed joint venture Northwest Innovation Works selected the Port of Kalama and Port Westward because of their ideal position along the lower Columbia River.
At Port of Kalama, BP and local Authorities are focusing on large available space along the existing Steelscape mill.
In building these twin methanol facilities on the US west coast, BP and China Academy of Sciences are willing to measure at large scale the environmental and financial benefits to export natural gas under the methanol form compared with the export of conventional liquefied natural gas (LNG) and the domestic production of methanol from coal.
The China Academy of Sciences involvement in this project is to represent all the Chinese research institutes and share all the experienced acquired through this project.
Dalian to build Lianing methanol import terminal
Another partner is coming from USA with the H&Q Asia Pacific private equity company, based in the Silicon Valley and well introduced in China.
Each methanol plant will require $1.8 billion capital expenditure and will be opened for a second phase expansion.
This methanol will be exported to Dalian in China with 50,000 tons Panamax ships.
On the Chinese east coast, the City of Dalian will build storage facility to receive the methanol with a capacity of 8 million tons.
As usual with Chinese driven projects, their implement is planned on fast track, so that BP and China Academy of Sciences are expecting the Northwest Innovation Works methanol-converted gas to come on stream in 2018 with the expansion phase to start in following at Port of Kalama, Washington and Port Westward, Oregon, USA.