AMSTERDAM, Nov. 21, 2013 /PRNewswire/ -- OCI N.V. (NYSE
Euronext: OCI) announced today that Natgasoline LLC, a wholly owned
subsidiary, plans to build a new greenfield world scale methanol
plant in Beaumont, Texas. The
plant is expected to have a capacity of up to 5,000 metric tons per
day (tpd), equivalent to approximately 1.75 million metric tons per
annum (mtpa), and is expected to start production in late 2016. It
will be the first methanol facility of this scale in the United States and will be the country's
largest methanol production facility based on nameplate
capacity.
The project will use state-of-the-art methanol technology and
will incorporate best available environmental control technology.
Natgasoline LLC submitted applications for environmental approvals
at both state and federal levels in February
2013. The plant will take up a portion of a 514 acre plot of
land recently acquired by OCI.
The project has been awarded a grant of US$ 2.1 million from the Texas Enterprise Fund,
as well as incentive commitments from local entities, including the
city of Beaumont, Jefferson County, the Beaumont Independent
School District, the Port of Beaumont and the Sabine-Neches Navigation
District. The Texas Enterprise Fund is a cash grant used as a
financial incentive tool for projects that offer significant
projected job creation and capital investment and where a single
Texas site is competing with
another viable out-of-state option. OCI estimates that the project
will create approximately 3,000 construction jobs over the next
three years and has committed to create 240 permanent jobs.
This is OCI N.V's third natural gas monetization project in the
US following the refurbishment of OCI Beaumont's integrated
methanol and ammonia facility in Beaumont, Texas (the operating subsidiary of
OCI Partners LP, NYSE: OCIP) and the construction of a US$ 1.8 billion nitrogen fertilizer complex in
Wever, Iowa by the Iowa Fertilizer
Company, a wholly-owned subsidiary of OCI N.V.
Texas Governor, Rick Perry, commented "Texas has created a job-friendly economic
environment through our low taxes, smart regulations, fair courts
and skilled workforce that welcomes world-class companies looking
to expand or relocate their operations. Natgasoline's commitment to
expanding and creating jobs in Texas further strengthens our energy industry
and continues the Lone Star State's longstanding role in fueling
the nation."
OCI N.V.'s Chief Executive Officer, Nassef Sawiris, commented: "Following the
success of OCI Beaumont's facility, OCI is pleased to have selected
the State of Texas once again to
expand its North American methanol activities. We believe that the
prospects for the US methanol industry will remain positive for the
foreseeable future because of growing U.S. and global demand,
continued access to attractively priced natural gas feedstock and
the United States' current
position as a net importer. Natgasoline LLC is well-positioned to
supply methanol, an essential building block for numerous end-use
products, to the domestic market and help reduce a substantial
reliance on annual methanol imports into the country. OCI's
Construction Group will be involved in the construction of the
plant, creating job opportunities in Texas and facilitating the completion of the
project on schedule.
The effort shown by Governor Perry, Judge Branick and the
commissioners' court, Mayor Ames, city manager Kyle Hayes and the Beaumont city council, Dr. Chargois and the
Beaumont school board, the Port of
Beaumont and the Sabine Neches
Navigation District reaffirms our commitment to Beaumont and the surrounding communities."
Although OCI N.V. currently intends to offer all or a portion of
the facility to OCI Partners LP at the appropriate time following
completion of the facility, it has no obligation to do so, and OCI
Partners LP has no right to acquire any interest in the facility
from OCI N.V. Please see "Forward Looking Statements" below.
OCI NV owns the general partner of, and a 78.3% limited
partner interest in, OCI Partners LP, which operates an integrated
methanol and ammonia production facility in Beaumont, Texas. OCI Partners LP is the
largest producer of merchant methanol in the United States.
Forward Looking Statements
This news release contains certain forward-looking statements
within the meaning of U.S. federal and other securities laws. Words
and phrases such as "is anticipated," "is estimated," "is
expected," "is planned," "is scheduled," "is targeted," "believes,"
"intends," "objectives," "projects," "strategies" and similar
expressions are used to identify such forward-looking statements.
However, the absence of these words does not mean that a statement
is not forward-looking. Forward-looking statements relating to the
proposed construction and operation of the new methanol production
facility are based on management's expectations, estimates and
projections about the methanol industry and other factors on the
date this news release was prepared. These statements are not
guarantees of future performance and involve certain risks,
uncertainties and assumptions that are difficult to predict,
including, but not limited to, the risks related to prevailing
conditions and outlook in the methanol industry, natural gas
pricing and supply conditions and outlook, construction risks,
hazards and delays, environmental and other permitting costs and
delays, and the availability of financing on acceptable terms,
whether from the capital markets or other sources. In addition, any
determination by OCI N.V. to offer any interest in the completed
facility to OCI Partners LP will be made in OCI N.V.'s sole
discretion and will in any event be subject to a number of factors,
including, but not limited to, the ability to reach agreement on
acceptable terms, the approval of a conflicts committee of OCI
Partners LP (if appropriate), prevailing conditions and outlook in
the methanol industry, natural gas pricing and supply conditions
and outlook, and OCI Partners LP's ability to obtain financing on
acceptable terms, from the capital markets or other sources.
Therefore, actual outcomes and results may differ materially from
what is expressed in such forward-looking statements. OCI N.V. is
under no obligation (and expressly disclaims any such obligation)
to update or alter its forward-looking statements, whether as a
result of new information, future events or otherwise.
About OCI N.V.:
OCI N.V. is a global nitrogen-based fertilizer producer and
engineering & construction contractor based in the Netherlands. The Fertilizer Group owns and
operates nitrogen fertilizer plants in the Netherlands, the
United States, Egypt and
Algeria and has an international
distribution platform spanning from the Americas to Asia. The Fertilizer Group ranks among the
world's top fertilizer producers with a fertilizer production
capacity of nearly 7 million metric tons. The Construction Group
provides international engineering and construction services
primarily on infrastructure, industrial and high-end commercial
projects in the United States,
Europe, the Middle East, North
Africa and Central Asia for
public and private clients. The Construction Group ranks
among the world's top global contractors. OCI N.V. employs more
than 75,000 people in 35 countries around the globe and is listed
on the NYSE Euronext in Amsterdam.
For additional information on OCI
N.V.:
www.ocinv.nl
OCI N.V. stock symbols: OCI / OCI.NA / OCI.AS /
OCINY
Mijnweg 1,
6167 AC Geleen,
The Netherlands
SOURCE OCI N.V.