Investor Presentaiton
12
Firm capacity additions unlikely to meet growing demand;
tight market conditions support strong methanol prices
Estimated industry capacity additions*
MMT
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
New capacity additions
Pace of capacity additions to slow after the
recent start-up of CGCL, Koch, and Schekino
Azot III between late 2020 and late 2021
Besides G3, limited firm capacity addition
expected in the Atlantic market
New capacity is needed to meet growing
demand; greenfield projects typically take 4
to 5 years from FID to commercial production
Methanol price outlook
Higher methanol prices and tight market
conditions supported by:
0.0
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
•
Growing methanol demand
°
US
Iran
China
Others
Firm Capacity Addition
Hypothetical Capacity Addition
Source: IHS 2022 World Analysis, Fall 2021 Update. *Capacity calculated on a pro-rata basis depending on the actual start-up timing.
Hypothetical capacity additions needed to balance the market otherwise operating rate improvements will be required.
Structural industry supply challenges
Higher energy prices
methanex
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