INEOS Acetyls and Sandpiper Chemicals, LLC announced the formation of a strategic collaboration in support of Sandpiper’s low-carbon methanol production facility in Texas City, Texas. INEOS will become a shareholder and an anchor customer of Sandpiper. The project represents a significant milestone in Sandpiper’s commitment to accelerating the clean energy transition and delivering competitively priced chemical feedstocks to global markets.
The low-carbon methanol facility will be located on INEOS’ Texas City site, leveraging the region’s established petrochemical infrastructure, deep-water port access, and skilled workforce. Sandpiper’s plant is designed to produce approximately 1.1 million metric tons per annum (MTPA) of low-carbon methanol utilizing natural gas with carbon capture, targeting a carbon intensity significantly below the conventional methanol production benchmark. Up to 300,000 tons per year will be consumed by INEOS for its Acetic Acid production.
The project is expected to enter the Front-End Engineering and Design (FEED) phase in Q2 2026, with a Final Investment Decision (FID) targeted for 2027 and first production anticipated in 2030. Total project investment is estimated at approximately USD 1.7 billion.
Declan Sealy, Business Director, INEOS Acetyls said, “Low-carbon methanol is increasingly recognized as a critical fuel and feedstock for the maritime, chemical, and energy sectors. INEOS is pleased to support Sandpiper’s development of this facility at our Texas City plant as it will position us at the forefront of a rapidly growing global market for sustainable fuels. We are excited by the economic and environmental impact this project will create.”
Peter Nassab, Chief Executive Officer, Sandpiper Chemicals, LLC said, “This venture is a defining step in our strategy to build a lower-carbon methanol portfolio. INEOS’ Texas City site offers world-class infrastructure, an advantaged gulf coast location and a talented workforce, making it the ideal location for a project of this scale and ambition. We are grateful for INEOS’ support, and we look forward to bringing this facility to life and delivering real value to our stakeholders.”
Methanol is one of the world’s most widely traded commodity chemicals, with global demand exceeding 100 million metric tons annually. Demand for low-carbon methanol is forecast to grow substantially over the coming decade, driven by its adoption as a marine fuel compliant with decarbonization mandates, as well as its expanding role in chemical manufacturing. Texas City’s proximity to major shipping lanes in the Gulf of Mexico further enhances the project’s commercial competitiveness.
The project is expected to create approximately 1,500 construction jobs at peak activity and 25 permanent positions upon commissioning. The project will generate significant tax revenues for Galveston County and the State of Texas. Sandpiper and INEOS are committed to engaging with local communities, educational institutions, and workforce development programs throughout the project lifecycle.
The facility will incorporate carbon capture and storage (CCS) technology targeting a capture rate of 97% of process CO₂ emissions, alongside best-in-class water management and air quality controls.