Mitsubishi Gas, Itochu to produce methanol in Brunei

KUN0068 4 GEN 0183 KUWAIT /KUNA-PWM1 ECO-JAPAN-BRUNEI Mitsubishi Gas, Itochu to produce methanol in Brunei TOKYO, Sept 22 (KUNA) -- A Japan's leading methanol producer Mitsubishi Gas Chemical Co. will establish a joint venture next April with trading house Itochu Corp. and a Bruneian company to produce and market methanol in Brunei. The move is in response to growing Southeast Asian demand for the material, which is used in paint and adhesives. The three companies will build a methanol plant with an annual output capacity of 850,000 tons in Brunei's Sungai Lian industrial area at a cost of up to USD 300 million. The plant is expected to commence operations in summer 2007, with most products likely supplied to Southeast Asia. The firms determined that they could procure natural gas, a raw material for methanol, at a relatively low cost in the natural gas-rich Brunei, the Tokyo-based chemical company said. Mitsubishi Gas is considering expanding the output capacity of a methanol plant in Saudi Arabia. It also plans to create another joint methanol venture in Chongqing, China, in 2008. (end) mk.ajs KUNA 221826 Sep 04NNNN