Methanol: Feedstocks
Why methanol is really a way to sell gas
What this tab covers What it is made from and what it feeds: the raw materials and energy per tonne with their share of cost (linked to the commodity table), who is low-cost and why, and the chemicals made from it.Methanol is about two-thirds energy cost. A gas plant burns and converts about 29-32 GJ of gas per tonne, so the price of gas decides who is competitive. Coal gasification uses about 1.4-1.7 t of coal per tonne. Where gas is stranded or flared, as in Trinidad, Iran or Oman, methanol is one of the few ways to sell it.
Inputs per tonne
| Input | Quantity per tonne | Role | Share of cost | Source |
|---|---|---|---|---|
| Gas Natural gas | about 29-32 GJ (28-30 MMBtu) per t (indicative) | carbon and hydrogen source plus fuel | about 60-80% of cash cost (indicative) | indicative industry energy use |
| Tc Thermal coal | about 1.4-1.7 t per t (indicative) | gasifier feed and fuel (China) | about 50-60% of cash cost (indicative) | IRENA (2021, indicative) |
| Water and oxygen | coal routes need an air separation unit and large water volumes | gasification and shift | small (indicative) | indicative |
| Copper-zinc catalyst | replaced every 3-5 years (indicative) | synthesis | under 2% (indicative) | indicative |
Who is low-cost, and why
Lowest cost: Middle East and Trinidad on cheap or stranded gas, then US Gulf on shale gas (about $100/t gas cost at 2025 Henry Hub). Chinese coal plants are mid-to-high cost but protected by integration. European and Indian plants on imported gas are the marginal suppliers; China's MTO affordability sets the price ceiling (Argus).
Raw materials on the commodity table
Gas Natural gasTc Thermal coalWhat it is made into
| Product | Note |
|---|---|
| HCHO Formaldehyde | largest outlet, about 29% (derived) |
| AcOH Acetic acid | via carbonylation, about 0.54 t methanol per t |
| MTBE MTBE | about 0.36 t methanol per t MTBE |
| C3H6 Propylene | via MTO in China |
| C2H4 Ethylene | via MTO in China |
| PMMA Acrylics (PMMA) | via methyl methacrylate |
| Amn Specialty amines and ethanolamines | methylamines for agrochemicals and solvents |
| FAME Biodiesel (FAME) | methanol supplies the methyl group in FAME |
| Sil Silicones | via methyl chloride |