# Methanol: Feedstocks

Why methanol is really a way to sell gas

Source page: https://www.materialinsights.org/chemicals/methanol/feedstocks/

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](https://www.materialinsights.org/energy/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](https://www.materialinsights.org/energy/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 gas](https://www.materialinsights.org/energy/natural_gas/)[Tc Thermal coal](https://www.materialinsights.org/energy/thermal_coal/)

#### What it is made into

| Product | Note |
|---|---|
| [HCHO Formaldehyde](https://www.materialinsights.org/chemicals/formaldehyde/) | largest outlet, about 29% (derived) |
| [AcOH Acetic acid](https://www.materialinsights.org/chemicals/acetic_acid/) | via carbonylation, about 0.54 t methanol per t |
| [MTBE MTBE](https://www.materialinsights.org/chemicals/mtbe/) | about 0.36 t methanol per t MTBE |
| [C3H6 Propylene](https://www.materialinsights.org/chemicals/propylene/) | via MTO in China |
| [C2H4 Ethylene](https://www.materialinsights.org/chemicals/ethylene/) | via MTO in China |
| [PMMA Acrylics (PMMA)](https://www.materialinsights.org/chemicals/pmma/) | via methyl methacrylate |
| [Amn Specialty amines and ethanolamines](https://www.materialinsights.org/chemicals/specialty_amines/) | methylamines for agrochemicals and solvents |
| [FAME Biodiesel (FAME)](https://www.materialinsights.org/energy/biodiesel/) | methanol supplies the methyl group in FAME |
| [Sil Silicones](https://www.materialinsights.org/chemicals/silicones/) | via methyl chloride |

## Other sections

- [Summary](https://www.materialinsights.org/chemicals/methanol/index.md)
- [Overview](https://www.materialinsights.org/chemicals/methanol/overview/index.md)
- [Correlation](https://www.materialinsights.org/chemicals/methanol/correlation/index.md)
- [Production route](https://www.materialinsights.org/chemicals/methanol/routes/index.md)
- [Production](https://www.materialinsights.org/chemicals/methanol/production/index.md)
- [Cycles](https://www.materialinsights.org/chemicals/methanol/cycles/index.md)
- [Trading](https://www.materialinsights.org/chemicals/methanol/trading/index.md)
- [Movement](https://www.materialinsights.org/chemicals/methanol/movement/index.md)
- [Regulation](https://www.materialinsights.org/chemicals/methanol/regulation/index.md)
- [Characteristics](https://www.materialinsights.org/chemicals/methanol/characteristics/index.md)
- [Emissions](https://www.materialinsights.org/chemicals/methanol/emissions/index.md)
- [Relationships](https://www.materialinsights.org/chemicals/methanol/links/index.md)