Global methanol demand to rise by 80% in decade, led by China

Global methanol demand is set to rise significantly -- from 60.7 million tons in 2013 to more than 109 million tons in 2023 -- with an average annual growth rate of 6%, according to new IHS research released Friday.

China is expected to be the major driver of this demand increase, while at the same time, the North American methanol market -- riding the wave of low-cost US shale-derived feedstocks -- is undergoing a renaissance as new projects deliver significant capacity additions.

“The methanol market is in a period of rapid transition, especially the North American market, which is accelerating quickly, thanks in part, to inward Chinese investment that is taking advantage of the region’s low-cost shale gas resources to feed its derivative units” said Mike Nash, global director of syngas chemicals at IHS Chemical.»