INEOS Acetyls and Sandpiper Chemicals have launched a strategic partnership to develop Sandpiper’s low-carbon methanol plant in Texas City. Under the agreement, INEOS will take an equity stake in the project and serve as a primary customer. This collaboration highlights Sandpiper’s role in the clean energy transition and its ability to supply cost-effective chemical feedstocks worldwide. 

Based at INEOS’ Texas City site, Sandpiper’s new facility will tap into the area’s deep-water ports and expert workforce to produce 1.1 million metric tons of low-carbon methanol annually. By pairing natural gas with carbon capture, the plant aims for a carbon footprint far lower than the industry standard. As part of the setup, INEOS will use up to 300,000 tons of the output each year for its own acetic acid production. 

The project is expected to enter the Front-End Engineering and Design (FEED) phase in Q2 2026, with a Final Investment Decision (FID) targeted for 2027 and first production anticipated in 2030. Total project investment is estimated at approximately US$ 1.7 billion. 

Declan Sealy, Business Director, INEOS Acetyls said, “Low-carbon methanol is increasingly recognized as a critical fuel and feedstock for the maritime, chemical, and energy sectors. INEOS is pleased to support Sandpiper’s development of this facility at our Texas City plant as it will position us at the forefront of a rapidly growing global market for sustainable fuels. We are excited by the economic and environmental impact this project will create.”   

Peter Nassab, Chief Executive Officer, Sandpiper Chemicals, LLC said, “This venture is a defining step in our strategy to build a lower-carbon methanol portfolio. INEOS’ Texas City site offers world-class infrastructure, an advantaged gulf coast location and a talented workforce, making it the ideal location for a project of this scale and ambition. We are grateful for INEOS’ support, and we look forward to bringing this facility to life and delivering real value to our stakeholders.” 

The project is expected to create approximately 1,500 construction jobs at peak activity and 25 permanent positions upon commissioning. The project will generate significant tax revenues for Galveston County and the State of Texas. Sandpiper and INEOS are committed to engaging with local communities, educational institutions, and workforce development programs throughout the project lifecycle. 

The facility will incorporate carbon capture and storage (CCS) technology targeting a capture rate of 97% of process CO₂ emissions, alongside best-in-class water management and air quality controls.