WHAT IS IT?
Methanol (CH₃OH), also called methyl alcohol or wood alcohol, is the simplest alcohol. A colourless, flammable liquid at room temperature. Produced primarily from natural gas via steam methane reforming.
HOW IS IT MADE?
Conventional: Natural gas → synthesis gas (CO + H₂) → methanol (Haber-Bosch type process)
Green methanol: Hydrogen (from electrolysis) + CO₂ → methanol. Emerging but expensive.
Bio-methanol: From biomass gasification.
KEY USES
Formaldehyde production (largest use): resins for plywood, furniture, construction
MTBE (fuel additive) and TAME production
Acetic acid feedstock (and downstream PTA, PET)
Dimethyl ether (DME) — LPG substitute
Marine fuel (IMO 2020 compliant alternative)
Biodiesel transesterification catalyst
Solvent
TRADE CORRIDORS
Major exporters: Trinidad, Saudi Arabia, Iran, Russia, China, Chile
Major buyers: China (world's largest consumer), USA, Europe
Tetra relevance: Natural gas feedstock intensive — prices track gas prices. China demand drives global pricing.
PRICING
No single global benchmark. Regional spot markets: CFR China, FOB Rotterdam, CFR Southeast Asia.
Price moves with natural gas cost (production) and downstream derivative demand.
SPECIFICATIONS
Grade AA (IMPCA standard):
Methanol: 99.85% min
Water: 0.10% max
Acetone: 30 ppm max
Ethanol: 10 ppm max
Specific gravity: 0.791–0.793
SAFETY
Highly toxic — ingestion of small amounts causes blindness or death. Flammable (flash point 11°C). Transported in chemical tankers, ISO tanks, or drums. IMDG Class 3.