PRINCETON JUNCTION, New Jersey, May 18, 2015 /PRNewswire/ -- International Process Plants (IPP) announces the immediate availability of a 500 metric tons per day methanol plant. The plant has been recently modernized and has excellent turndown and expansion capability. IPP is soliciting offers to purchase and relocate this asset.
The plant is in excellent operating condition and was only shut down due to high feedstock (natural gas) costs in its current location. Major modifications through 2009 have increased both the flexibility of the plant's operation and reliability. Engineering and major equipment are already in place to make the plant capable of producing 750 metric tons per day. Depending on the required offtake, the plant also has the ability to run at anywhere from 40 percent to 100 percent utilization efficiently. The plant is well documented with full electronic records, production records, drawings, and diagrams.
Methanol producers or consumers looking to expand their operations, or backwardly integrate would be able to derive significant benefits from acquiring this asset from IPP. Purchasing and relocating a second-hand facility generally results in a total project cost of approximately 50-60% of the cost of building a new plant. Companies will also save time by using existing equipment and engineering when constructing a plant in a new location. It takes roughly three years to get a new plant of this type into operation; by using this existing plant, dismantling it and reassembling it elsewhere, the new owner can cut that time in half.
"With the low cost of natural gas in the United States, a significant amount of stranded and associated gas that is not being monetized effectively or at all, and good market demand for methanol," says Ron Gale, President of IPP, "we believe that this plant represents an excellent opportunity to expand or start a methanol business in the US, and elsewhere where feedstock costs might also be low." Operating this plant, according to preliminary research, should yield in an approximately US$200/MT net profit margin at today's spot price.
IPP has been in the business of buying and selling second hand process plants and equipment for the past 37 years. The company has grown into a multinational corporation with offices in 15 countries worldwide, including the United States. The company's mission is to be the leading source for used process plants in the chemical, petrochemical, oil & gas, pharmaceutical, paper, plastic, power generation and mining industries. Including the aforementioned methanol plant, the company has approximately 70 plants available.
For more information, contact Ross Gale, +1 (609) 586-8004, RossGale@ippe.com
SOURCE International Process Plants (IPP)