Eastman to sell Beaumont ammonia and methanol plants

Kingsport, Tenn.-Eastman Chemical Co. confirmed Dec. 29, 2010, that it plans to sell the anhydrous ammonia and methanol plants in Beaumont, Texas, that it bought from Terra Industries Inc. back in 2007 (GM July 23, 2007). The facility has the capacity to produce annually 225 million gallons of methanol and 255,000 tons of ammonia, and includes methanol and ammonia storage capacity. At the time, Eastman had planned to make them a part of a major new gasification facility planned for the Beaumont area. However, Eastman has since tabled the gasification plans. Eastman has entered into an agreement with Pandora Methanol LLC, a wholly owned subsidiary of Janus Methanol AG. The sale includes related ammonia tank and methanol terminalling assets and a methanol pipeline in Beaumont. The transaction is expected to close during first-quarter 2011. The terms of the agreement have not been disclosed. Pandora could not be contacted at press time; however, sources report that the company plans to bring both ammonia and methanol plants up in 2011, with an eye toward methanol expansion.