Gas Chemistry
The conversion of natural gas in a synthesis gas (the first step in the methanol synthesis process) enables access to a broad spectrum of synthesis processes, for example important industrial processes such as hydrogenation and hydroformulation. Such applications open up new production perspectives for UCP Chemicals in addition to the company's current focus on the production of methanol.
Methanol is an important basic chemical, which is primarily derived from natural gas. The versatility of methanol properties enables a wide range of applications. For example, after its conversion into formaldehyde, methanol turns out to be an important raw material in the production of synthetic resins and plastics. Methanol is also used in manufacturing biodiesel, as an additive for fuels (MTBE), as well as in the production of acetic acids, in particular ester, propylene and dimethyl ether.
Due to growing global demand in the last few years, production capacity in Russia has climbed significantly. About 50% of total Russian production is exported, primarily to Europe. The trend is clearly towards increasingly large-scale facilities, known as "MegaMethanol" plants.
The price for methanol is closely linked to the price development of natural gas. The ongoing price increases for natural gas and insufficient capacities in methanol production have led to a significant rise in methanol prices in recent years.
Measured against the total volume, methanol is by far the most important raw material used by UCP Chemicals.
The entry into the field of methanol production represents an initial step on the part of UCP Chemicals to penetrate the promising gas chemistry market. On the one hand, through this backward vertical integration, UCP Chemicals should profit from being able to produce its own raw materials at optimal prices. On the other hand, as a consequence, UCP should also be able to profit from growth perspectives in this segment in the long term i.e. the development of new methanol-based products.
