Transition Industries LLC and Mitsubishi Gas Chemical announce Letter of Intent for a long-term Methanol Sales Agreement

Houston, United States:
Transition Industries LLC announced that it has signed a Letter of Intent (LOI) with Mitsubishi Gas Chemical Company, Inc. (MGC) to enter into a long-term Methanol Sales Agreement (MSA). Under the MSA, Transition Industries intends to supply MGC approximately 1 million MT per annum of ultra-low carbon methanol from its Pacifico Mexinol project, a 6,145 MT per day methanol production facility near Topolobampo, Sinaloa, Mexico, expected to be in operation in 2028. Transition Industries is jointly developing Pacifico Mexinol with the International Finance Corporation (IFC), a member of the World Bank Group. The terms of the LOI and MSA were not disclosed.

When it initiates operations, Pacifico Mexinol is expected to be the largest single ultra-low carbon chemicals facility in the world – producing approximately 350,000 MT of green methanol and 1.8 million MT of blue methanol annually from natural gas with carbon capture.

Rommel Gallo, CEO of Transition Industries, commented: “We are pleased to announce our Letter of Intent for a long-term Methanol Sales Agreement with Mitsubishi Gas Chemical Company, one of the leading manufacturers and marketers of chemicals in the world. We are honored to work with MGC in our joint efforts to address climate change and supply the Pacific Basin with ultra-low carbon methanol.”

Masahiko Naito, Division Director, C1 Chemicals Division for Mitsubishi Gas Company, said: “As one of the major producers and suppliers of methanol globally, Mitsubishi Gas Chemical prioritizes the acceleration to lower carbon intensity of our methanol supply and aims to contribute to a sustainable world. I’m very excited to work with Transition Industries towards this goal and to bring value to society.”

Pacifico Mexinol is expected to break ground in early 2025 and begin commercial operations in 2028.