Supported by

Sultanate of Oman

Ministry of Commerce & Industry

"Industry outlook in light of new capacities"

The methanol industry suffered dramatic changes in recent times. From strong demand growth and unprecedented high prices, the situation drastically reversed as the global economic crisis impacted the sector. Continued weakness of the construction and automotive sectors in the US and Western Europe impacted on methanol consumption, resulting in reduced demand for chemical uses. Meanwhile, there was some mitigation provided by "new uses", such as DME in China for heating during winter and gasoline blending.

With methanol netbacks falling below production costs, Russian producers have been operating at reduced rates and extended maintenance/turnaround periods. They are serving local markets as high land freight costs and low methanol prices make them less competitive in export markets.

In China, significant capacity has shut down due to poor economics. Some coal-based producers have incurred negative margins whereas gas-based producers have suffered supply shortages during the winter. Natural gas supply for domestic heating is prioritized over chemical uses. Hence, record imports have been observed in the country, which has led to an antidumping investigation by the Chinese government. Imports from Saudi Arabia, New Zealand, Malaysia and Indonesia could be affected.

Asia-Pacific, in particular China, is expected to continue to be the driver for methanol demand, mitigating slightly the slowdown of other major markets such as the US and Western Europe. In Oman, Oman Methanol's 3000 MTPD plant successfully started up in 2007 and Salalah Methanol's 3000 MTPD plant is set to come on-stream by April 2010. Also in the Middle East, Chemanol successfully start-up its 700 TPD plant at Al Jubail in 2009 (also co-producing CO) while EMethanex's 3600 MTPD plant at Damietta is slated for start up in April 2010.

From the technological angle, production growth of Methanol also spurred adoption of new processes and catalytic technologies for efficient production and deriving olefins and gasoline from Methanol. With a significant tranch of new capacity due on-stream, particularly in the Middle East and China, how are methanol suppliers and downstream players gearing up for the next 12 - 15 months? Will key emerging applications for methanol such as olefins, DME, gasoline and biodiesel provide markets for methanol, driving future growth? CMT's 5th Methanol Market Tech offers top industry panel to discuss issues and challenges ahead.

Attend CMT's 5th Methanol Markets & Tech to:

• Engage personally with producers from Oman, Saudi Arabia, China, Iran and Azerbaijan
• Hear from the importers from Asia, Europe, Japan and assess demand/import requirements
• Assess the feedstock economics of coal, natural gas and other alternatives
• Optimise your business portfolio in the value chain of methanol production, shipping and derivatives
• Keep abreast with the latest environmental standards in methanol production
• Evaluate utilization of Methanol-Gasoline Blending and status of DME adoption
• Be updated on the Formaldehyde and Fuel Cell Markets, and its impact on methanol demand
• Gain the latest on freight and shipping market
• Access to extensive networking opportunities with key stakeholders

You will network with

Presidents - MDs - SVP - VPs - Commercial Directors/Advisors ; General Managers - Operations/Technical Sales Executives ; Purchasing/Procurement Executives from organizations including: Oil and Gas - Coal - Biomass - Petrochemicals - Methanol - Derivatives/Downstream - Formaldehyde, Acetic Acid, DME, MTBE, Biodiesel, Automotives and Direct Methanol Fuel Cell (DMFC) - Technology/Catalysts/Additives