Methanex to acquire OCI’s methanol business for $2bn

: Biofuels, Fertilizers, Hydrogen, Natural gas, Petrochemicals
24/09/09

Methanol producer Methanex announced Sunday that it will acquire OCI's international methanol business for $2.05bn.

As part of the transaction, Methanex will acquire four primary assets, including a 910,000 t/yr methanol facility and 340,000 t/yr ammonia facility in Beaumont, Texas.

Methanex will acquire OCI's 50pc interest in the 1.7m t/yr Natgasoline methanol plant in Beaumont. The acquisition of Natgasoline is subject to a legal proceeding between OCI and Proman, the other 50pc holder in Natgasoline, over certain shareholder rights. If the dispute is not resolved within a certain period, Methanex has the option to exclude the purchase of the Natgasoline joint venture and proceed with the rest of the transaction.

The transaction also includes OCI HyFuels, a producer of green methanol products such as biomethanol and bio-MTBE, and trading and distribution capabilities for renewable natural gas (RNG) and ethanol. Additionally, Methanex will acquire an idled 1m t/yr methanol facility in Delfzijl, Netherlands.

The purchase price includes $1.15 billion in cash, the issuance of 9.9 million shares of Methanex valued at $450 million and the assumption of about $450 million in debt and leases.

The acquisition of fertilizer producer OCI began over a year ago, according to OCI officials.

"We identified Methanex as the natural owner of OCI Methanol at the outset of our strategic process, which we initiated in the spring of 2023," OCI executive chairman Nassef Sawiris said.

This acquisition moves Methanex, primarily a methanol maker, into the ammonia sector.

"From an operating perspective, we have a shared culture of safety and operational excellence, and we expect the OCI team will help us build new skills in ammonia while enhancing our capabilities in the evolving business of low carbon methanol production and marketing," Methanex CEO Rich Sumner said.

The deal is expected to close in the first half of 2025. The transaction has been approved by the boards of directors of the two companies and is now awaiting certain regulatory approvals and other closing conditions.

The transaction is also subject to approval by a simple majority of the shareholders of OCI. The largest shareholder of OCI, has signed an agreement to vote for the transaction.

By Steven McGinn

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25/06/13

Iran suggests upcoming nuclear talks with US are off

Dubai, 13 June (Argus) — Nuclear negotiations between Iran and the US scheduled for Sunday, 15 June, appear to be off following the Israeli air and missile strikes on Iran in the early hours of today. The talks were formally confirmed by mediators Oman on 12 June as taking place in the Omani capital, Muscat. With the mood around the negotiations having taken a turn for the worse this past week, the new round would provide an opportunity for the sides to re-establish their demands, and re-evaluate progress. The key outstanding issue is Iran's ability to enrich uranium, and thus, retain a theoretical path to nuclear weapons. Tehran insists it should be allowed to retain its civilian nuclear enrichment program to supply fuel to nuclear power plants, while US administration officials now appear bent on allowing zero enrichment. The Israeli attacks , which came against US President Donald Trump's advice, appear to have thrown a wrench into the US' efforts to engage Iran diplomatically. Speaking on state television today, Iranian parliament's national security and foreign policy committee member Alaeddin Boroujerdi said the attacks on Iran meant the talks with the US now cannot take place. "With respect to the talks, which we entered at America's request… we were on the verge of a sixth round," he said. "But with these latest developments, I can't see a sixth round taking place." Iran's foreign ministry, which has been leading the discussions for the Iranian side, has yet to explicitly comment on the status of the talks. Neither has Oman. On the attacks, Tehran's Guardian Council, a powerful supervisory body tasked with overseeing legislation, vowed to "give a crushing and tooth-breaking response to these criminals of history in such a way that it will serve as a less on to the enemies of Islam, and the arrogant powers of the world." Iran sent a barrage of drones towards Israel, which appeared to trigger a second round of Israeli strikes on several cities, including Shiraz in the south, Tabriz in the northwest, and Kermanshah in the west. Trump calls for deal The Trump administration has said it was not involved in the Israeli strikes, and warned Iran not to retaliate against its personnel in the Middle East. But it did appear to have at least advance warning of the imminent attack, after ordering non-essential US personnel in Iraq and Israel to evacuate. Trump today again called on Iranian leaders to "make a deal" or face even more "death and destruction" from the next waves of Israeli attacks. "I gave Iran chance after chance to make a deal… but no matter how hard they tried, no matter how close they got, they just couldn't get it done," Trump said on his Truth Social media platform. "There has already been great death and destruction, but there is still time to make this slaughter, with the next already planned attacked being even more brutal, come to an end. Iran must make a deal before there is nothing left." By Nader Itayim and Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Egyptian urea production halted on Israel attacks

25/06/13

Egyptian urea production halted on Israel attacks

London, 13 June (Argus) — All Egyptian urea plants have stopped production today because of a drop in natural gas flows from Israel, with suppliers withdrawing urea offers. Greek independent Energean has suspended production from its Karish gas field offshore Israel in line with an Israeli government order after the country carried out air and missile strikes against Iran in the early hours of Friday local time. Production at Israel's two other offshore gas fields — Leviathan and Tamar — may also have been affected. Operator Chevron declined to comment, beyond stating that its employees and facilities were safe. One source told Argus that output at Leviathan has been suspended. Leviathan has a production capacity of 1.2bn ft³/d (12.36bn m³/yr), while Tamar's production capacity is 1.1bn ft³/d. Both fields supply gas to Egypt. Egypt has bought at least 140 LNG cargoes for delivery across the rest of this year and next year. But limited import infrastructure and capacity will likely keep urea production outlook uncertain in the near term. Production will be vulnerable to further fluctuations, because of the geopolitical situation in the region. At least five Egyptian urea plants with a combined capacity of around 3.29mn t/yr stopped production on 17 May, following initial reductions a week earlier. Operating rates at the country's urea plants are estimated at 70-80pc of capacity since 9 June. By Dana Hjeij Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Iran’s oil infrastructure untouched by Israeli strikes

25/06/13

Iran’s oil infrastructure untouched by Israeli strikes

Dubai, 13 June (Argus) — Iran's oil infrastructure emerged unscathed from Israeli air and missile strikes in the early hours of 13 June, according to Iran's state news agency Irna and Argus sources. But the attacks have raised the prospect of a broader escalation in the world's largest oil-producing region. Israel said the strikes targeted military facilities and infrastructure linked to Iran's nuclear programme. It described the operation as an act of self-defence, claiming Iran is "closer than ever" to acquiring a nuclear weapon. The US denied involvement and urged Tehran not to retaliate against US personnel in the region. Iran informed the International Atomic Energy Agency (IAEA) that its Bushehr nuclear power plant was not targeted and that no increase in radiation levels had been observed at its Natanz site, IAEA director general Rafael Grossi said today. Oil operations remain unaffected. Activities at Iranian facilities are continuing "without interruption and in a stable manner," Irna reported, citing state-owned refiner NIORDC. The operator of Iran's 700,000 b/d Abadan refinery said the plant is running at full capacity with no disruption, according to the state news agency Shana. The 110,000 b/d Tabriz refinery — located near one of the reported strike zones — was not hit and "operations resumed as normal," an official at the plant told Argus . No other Iranian oil or gas facilities have been targeted so far, Argus understands. Crude futures surged in early Asian trading on news of the strikes, rising by as much as 13pc before paring gains. As of 09:00 GMT, the front-month August Ice Brent contract was trading at $74.30/bl, down from an earlier high of $78.50/bl. The absence of physical supply disruption helped ease immediate concerns, but the risk of a wider conflict remains high. In response to the strikes, Iran launched around 100 drones toward Israeli territory. "Israel is working to intercept [the drones]," Israeli military spokesperson Effie Defrin said. Israeli media later reported that all drones were intercepted. The fallout from the strikes has affected regional gas operations. Greek independent Energean suspended production from its Karish gas field offshore Israel following a government order issued after the Israeli attacks. Security concerns in key shipping lanes were already rising ahead of the strikes. On 12 June, the Joint Maritime Information Centre (JMIC) warned that the "threat will be elevated until further notice for vessels operating in or transiting the Arabian Gulf, strait of Hormuz, and Northern Arabian Sea". Any disruption to the strait of Hormuz — a chokepoint for nearly a fifth of global oil flows — could have immediate and severe consequences for global crude supply and pricing. The Yemen-based Houthi movement, part of Iran's regional proxy network known as the ‘Axis of Resistance', condemned the Israeli strikes and affirmed "Iran's right to carry out a deterrent response." It declared support for Iran's "legitimate right to respond to the aggression." So far, however, neither the Houthis nor other Iran-aligned groups — including Lebanon's Hezbollah and Shia militias in Iraq — have taken retaliatory action. Israel has significantly weakened the Axis of Resistance since the October 2023 Hamas-led attack, eliminating most of Hamas' leadership and key Hezbollah figures. Israel and Iran also exchanged missile and drone strikes in 2024. By Bachar Halabi, Yong Li Tng and Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Israel gas field halts output after Iran strikes

25/06/13

Israel gas field halts output after Iran strikes

London, 13 June (Argus) — Greek independent Energean has suspended production from its Karish gas field offshore Israel following a government order issued in the wake of Israeli airstrikes on Iran. Energean said on 13 June that it received a directive from Israel's ministry of energy and infrastructure to temporarily halt all production and activities on the Energean Power floating production, storage and offloading (FPSO) unit. The ministry cited the "recent geopolitical escalation in the region" as the reason for the suspension. "All production activities have now been temporarily suspended and notices have been issued to Energean's customers and other stakeholders," the company said. It added that the safety of its staff remains the top priority. Production at Israel's two other offshore gas fields, Leviathan and Tamar, may also have been impacted. Operator Chevron declined to comment beyond stating that its people and facilities were safe. One source told Argus that output at Leviathan has been suspended. Leviathan has a production capacity of 1.2bn ft³/d while Tamar's production capacity is 1.1bn ft³/d. Both fields supply gas to Egypt, which is struggling to meet domestic gas demand. Energean said it is maintaining close dialogue with the ministry and other relevant stakeholders to facilitate the safe resumption of Karish production "as soon as possible." No timeline was given for restarting operations. The shutdown follows Israeli airstrikes overnight on 12–13 June targeting Iranian military and nuclear sites, in one of the most significant escalations between the two countries in years. Iran has vowed to respond, raising concerns about potential retaliation against Israeli energy infrastructure. Karish is smaller than Leviathan and Tamar but is still a key component of Israel's domestic gas supply. Energean has ramped up output from the field since first gas in late 2022. The FPSO has a production capacity of up to 8bn m³/yr (775mn ft³/d) and supplies gas under long-term contracts to Israeli power generators and industrial users. Energean said further updates will be provided as they become available. By James Keates, Aydin Calik and Martin Senior Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia allows emissions reporting for biomethane, H2

25/06/13

Australia allows emissions reporting for biomethane, H2

Sydney, 13 June (Argus) — The Australian government will enable companies to report scope 1 emissions from the consumption of biomethane and hydrogen, which will need to be backed by eligible renewable gas certificates, it announced today. Companies will be able to prove that the gas they receive from the natural gas network and consume in a reporting year contains an amount of renewable gas, as represented by renewable gas certificates retired or completed by them or on their behalf, adjusted for losses, the Department of Climate Change, Energy, the Environment and Water (DCCEEW) said on 13 June. The new product guarantee of origin (PGO) certificates registered under the guarantee of origin (GO) scheme, as well as the renewable gas guarantee of origin (RGGO) certificates issued under the GreenPower Renewable Gas Certification (RGC), will both be allowed. Any gas sourced from the natural gas network that is not covered by the new certificate-backed loss-adjusted amount must be reported as natural gas, the DCCEEW said. The changes are part of updates to the National Greenhouse and Energy Reporting (NGER) scheme, which is used to measure and report greenhouse gas (GHG) emissions and energy production and consumption. These are the latest changes following the implementation of the recommendations made at the end of 2023 by Australia's Climate Change Authority (CCA), which reviews the NGER scheme every five years. The market-based reporting allowing companies to report the scope 1 emissions benefits from their renewable gas purchases will start from 1 July 2025, and be applicable from the July 2025-June 2026 financial year onwards. They will affect NGER scheme reports to be submitted by corporations by 31 October 2026. The updates also include amendments to support the reclassification of hydrogen as a fuel type. Hydrogen was previously classified in the NGER scheme as an energy commodity. The DCCEEW will monitor the uptake of biomethane as a feedstock for ammonia and hydrogen production and may revisit some technical rules in future annual NGER scheme updates, it said. Potential impact on oil and gas facilities Other changes announced on 13 June include updates to the emission factors used in two methods for gas flared in oil and natural gas operations. Some submissions to a public consultation raised concerns about the potential overestimation of methane emissions resulting from the assumption that flare gas is 100pc methane, and implications of the proposed emission factors on facilities covered by the safeguard mechanism, the DCCEEW said. The Clean Energy Regulator has the discretion to vary the facility's baseline to accommodate the regulatory change if the revised factors have a material impact on emissions reported by a facility covered by the safeguard mechanism, it said. Facilities under the oil and gas extraction sector received a combined 3.07mn safeguard mechanism credits (SMCs) in the July 2023-June 2024 financial year as their covered scope 1 emissions were below their baselines. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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