Transition Industries LLC has announced the signing of a Letter of Intent (LOI) with Mitsubishi Gas Chemical Company, Inc. (MGC) to establish a long-term Methanol Sales Agreement (MSA). This agreement will enable Transition Industries to supply MGC with approximately 1 million metric tons (MT) per year of ultra-low carbon methanol from its upcoming Pacifico Mexinol project. This facility, located near Topolobampo, Sinaloa, Mexico, will have a production capacity of 6,145 MT of methanol per day and is set to commence operations in 2028. Transition Industries is collaborating with the International Finance Corporation (IFC), part of the World Bank Group, to develop the Pacifico Mexinol project. Specific details regarding the terms of the LOI and MSA remain undisclosed.
In a previous announcement, Transition Industries revealed a 15-year Methanol Sales and Marketing Agreement (MSMA) with Macquarie Commodities Trading, an affiliate of Macquarie Group’s Commodities and Global Markets division.
Upon starting operations, Pacifico Mexinol is projected to be the world’s largest single facility for ultra-low carbon chemicals, producing around 350,000 MT of green methanol and 1.8 million MT of blue methanol annually, utilizing natural gas with carbon capture technology.
Rommel Gallo, CEO of Transition Industries, expressed enthusiasm about the partnership, stating, “We are thrilled to announce our Letter of Intent for a long-term Methanol Sales Agreement with Mitsubishi Gas Chemical Company, a leading global manufacturer and marketer of chemicals. Collaborating with MGC allows us to address climate change while supplying ultra-low carbon methanol to the Pacific Basin. This engagement stems from Macquarie Commodities Trading’s efforts to secure offtake agreements with esteemed customers under our Master Services and Marketing Agreement (MSMA). With the support of our key stakeholders, Transition Industries is positioned at the forefront of promoting the global adoption of low carbon intensity chemical feedstocks.”
Masahiko Naito, Division Director of the C1 Chemicals Division at MGC, emphasized the company’s commitment to sustainability: “As a major global producer and supplier of methanol, Mitsubishi Gas Chemical is focused on reducing the carbon intensity of our methanol supply to contribute to a sustainable world. I am excited to collaborate with Transition Industries to achieve this goal and provide value to society.”
Additionally, under the MSMA with Macquarie, the firm will handle marketing for all production from Pacifico Mexinol, provide necessary financial hedging services, and assist in commodity planning and contracting for required feedstock.
Construction of the Pacifico Mexinol facility is anticipated to begin in early 2025, with commercial operations slated to start in 2028.
