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Old 08-09-2014, 02:03 PM   #18 (permalink)
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I listened to about 10 minutes of the pitch, then did some googling. With the rising availability and falling price of natural gas from fracking, many companies have announced plans for various plants to make methanol, ethylene and polyethylene, and other products, mostly around the Gulf coast in LA and TX. According to the most recent article on this in the American Chemical Society news magazine, if they are all built the construction costs will be about $100 billion, but many are just announcements to test the investor and competition waters and will never materialize. Anyway, a company called ZeoGas (ZeoGas LLC) has licensed natural gas to methanol technology from Air Liquide, and methanol to gasoline technology from ExxonMobil, and is planning a 16,000 barrel per day gasoline plant, so that matches up with the numbers in the sales pitch link. They are an LLC so no stock available, so maybe the sales pitch in the newsletter will be to wait for an IPO? Couldn't find any economic analysis so can't confirm that part, but Exxon developed the methanol to gasoline tech back in the 80's and there has been a 14,500 barrel per day plant operating in New Zealand since 1985 so there shouldn't be any surprises. I'm not an economist but since they will be a small part of the total volume to me it makes the most sense to price their product just a tad under the current market price, so they guarantee that they sell their full production volume. Any cheaper and they just leave profit on the table, so I doubt the result will be any substantial price drop for us consumers. I think the price will still be driven by the price of oil which is mostly driven by world fears :-).
Carl Ijames carl.ijames xx@xx delete the xxs
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