China and Middle East Compete for Leadership in Methanol
Competition From the Middle East
The other dominating market is the Middle East with its access to low cost natural gas feedstock, making methanol production in this region highly cost-effective. This boosts the attraction of the region’s methanol industry, and there has already been a recent increase in capacity additions as a consequence. Analysts estimate that this development may result in increased exports from the Middle East, and if the same trend continues, other regions will suffer in the wake of rising competition.
Methanol Market Offers Huge Potentials
Global methanol demand stood at 26.6 million tons in 2000, before increasing to 44.9 million tons in 2010 at a CAGR of 5.4%. Global demand for methanol will increase to reach 122.6 million tons by 2020, demonstrating a CAGR of 10.6% during 2010-2020.