VENEZUELA - Methanol.

Two JVs produce methanol at Jose: Metor (Metanol de Oriente), on stream since 1994, owned 37.5% by Pequiven, 23.75% by each of Mitsubishi Corp. and Mitsubishi Gas of Japan, and the other partners are Polar (10%) and the World Bank's International Finance Corp. (IFC - 5%). Metor produces 840,000 t/y. It is to be expanded to 1.74m t/y. Supermethanol, on stream since Feb. 18, 1995 owned 34.5% by each of Pequiven and Ecofuel of ENI, and 15% by each of Methanol Holding Ltd. and Petrochemical Investments Ltd. Supermethanol has a nameplate capacity of 690,000 t/y, which is to be raised to about 1.3m t/y.

In early 2005 Metor joined the Methanol Institute (MI) in the US, which serves as a global trade association for the methanol industry. Metor then announced plans to build a second methanol train at Jose, raising its capacity to 1.74m t/y in a US$320m project to be on stream in 2008. Pequiven and PDVSA Gas have signed a long-term supply agreement for the necessary gas feedstock. Most of Metor's output is exported to the US, the world's largest methanol market.

Jan W. Spin, vice president of Southern Chemical and chairman of the MI's board was last February quoted as saying: "Welcoming Metor to MI demonstrates our continued commitment to helping global producers maintain a voice in Washington on US legislative initiatives and international regulatory issues". Metor CEO Betulio Hernandez said: "We are very glad to join the Methanol Institute. We are sure that its continuous support to the global producers and consumers will be a key issue in the coming years for the methanol industry worldwide, not only for regulatory issues but also in new market development and consumer education. We believe in this industry, that is why we are now committed with the expansion project". (Methanol, also known as wood alcohol, is a feedstock for hundreds of widely used chemical commodities, including formaldehyde, acetic acid, windshield wash fluid, and the gasoline additive MTBE. Methanol is a leading source of hydrogen for emerging fuel cell technology applications, including fuel cell-powered laptop computers and cellular phones). Mark Vassar, vice president of Mitsubishi Gas Chemical and vice chairman of the MI board, said: "MI is our industry touchstone for many facets of representation. MI plays a vital role in consumer education about methanol that all producing areas of the globe require".