Celanese Clear Lake

  • Post author:
  • Post category:Clear / Lake

Warren Buffett’s position in Celanese Corp is currently worth $998 Million. That’s 0.29% of their equity portfolio (25th largest holding). The investor owns 8.56% of the outstanding Celanese Corp stock. Warren Buffett started to build up the position in Celanese Corp in Q1 2022 and continued to invest until Q3 2022. Since then they sold 891 Thousand shares. The investor’s estimated purchase price is $1.31 Billion, resulting in a loss of 24%. TCX Technology is a hydrocarbon-based ethanol production process developed and marketed by Celanese and launched in November 2010. Celanese researchers developed the TCX Technology to create a fuel that helps countries reduce their need to import oil and gas. Celanese plans to invest $700 million to build one-to-two plants in China and one in Texas that will produce TCX-based ethanol. On 16 December 2003, the U.S. private equity firm Blackstone Group announced a takeover offer for Celanese, after two years of wooing management. Shareholders formally approved the offer from Blackstone on 16 June 2004, and Blackstone completed the acquisition of Celanese AG. The company was delisted from the New York Stock Exchange, and Blackstone changed the entity’s name back to Celanese Corporation. Under Blackstone, a number of streamlining initiatives were undertaken, and several acquisitions were made.Acetyl intermediates is Celanese’s largest segment, with a product range consisting of basic chemicals such as acetic acid, acetic anhydride, and vinyl acetate. Customers of acetyl intermediates and industrial specialties are in the chemical, paint and coatings, construction, and adhesive industries for polymerization.

The food ingredients business Nutrinova produces the high intensity sweetener Sunett (acesulfame K), the preservatives Nutrinova, potassium sorbate, and sorbic acid, and other food ingredients. Major end-use markets include beverages, confections, baked goods, and dairy products. In 2021, Celanese ranked 7th on FoodTalks’ Global Top 20 Food Preservative Companies list.

Who bought Celanese?
Hoechst AG acquires Celanese Corporation for $2.85 billion.
Celanese commissioned Edward Durell Stone, a 20th century American architect, in 1959 to build the “Celanese House,” a model home in New Canaan, Connecticut, to showcase the company’s new materials and styles.

The company had introduced the word “Celanese,” a combination of “cellulose” and “ease” in 1925, seeking to promote the ease of cleaning and care of their acetate yarn, or artificial silk, fabrics. They officially took this name in 1927, becoming Celanese Corporation of America.In 1995, Hoechst Celanese was named along with Shell Oil and US Brass as a defendant in a class action lawsuit for $7 billion in both past and potential future damages for which they were accused of being liable because of leaks in their polybutylene (PB) plumbing systems. The lawsuit alleged a complex scheme to mislead buyers into believing that PB plumbing systems were suitable for use as potable water distribution systems and purportedly enjoying a lifetime of 50 years service. According to the lawsuit, scientists from the defendants allegedly reported that the PB plumbing systems would degrade even when exposed to low concentrations of chlorine typically found in municipal water systems. The lawsuit claimed that in spite of this knowledge, the defendants concealed the information and continued to market these products (Shell supplying PB resins to water pipe manufacturers and Hoechst Celanese providing acetal resins to manufacturers of pipe fittings) until approximately 1996.

Who is the world's largest methanol supplier?
Methanex We are Methanex: the world’s largest producer and supplier of methanol to major international markets in North America, Asia Pacific, Europe and South America.
In January 2014, a class action lawsuit was filed on behalf of the citizens of Cannon’s Campground, seeking relief from health and environmental dangers posed by groundwater and surface water contamination emanating from the Hoechst-Celanese manufacturing plant in Spartanburg, South Carolina. The lawsuit alleged the dumping of a number of toxic chemicals into local waters, which has diminished property values and caused a number of illnesses. Hoechst Celanese asked the courts to dismiss these charges as spurious, claiming that its discharges have not caused substantial harm to anyone or to the environment, and further asserting that a 3-year limit on tort claims had expired, relieving the company of any responsibility for damages which might be eventually discovered.In 1983, Celanese built a $20 million plant in Rock Hill, South Carolina, to produce polybenzimidazole (PBI), a material used to fabricate high-performance protective apparel used in firefighter’s gear and astronaut space suits.

Celanese Corporation, formerly known as Hoechst Celanese, is an American technology and specialty materials company headquartered in Irving, Texas. A Fortune 500 corporation, the company is the world’s leading producer of acetic acid, producing about 1.95 million tonnes per year, representing approximately 25% of global production. Celanese is also the world’s largest producer of vinyl acetate monomer (VAM).
On 21 January 2005, Celanese Corporation conducted an initial public offering and became a publicly traded corporation traded on the New York Stock Exchange under the symbol “CE”. When Blackstone sold the last of its shares in 2007, it had made five times what it had invested and it, and its co-investors collected a $2.9 billion profit.

In 1998, in a $2.7 billion deal, Hoechst Celanese sold its Trevira division to a consortium between Houston-based KoSa, a joint venture of Koch Industries, IMASAB S.A., and Grupo Xtra, both of Mexico. Also in 1998, Hoechst combined most of its industrial chemical operations into a new company, Celanese AG.
The American Cellulose and Chemical Manufacturing Co. Ltd plant in Cumberland, Maryland, was set up during World War I to produce cheaper fabric for airplane manufacturing. The plant location was chosen inland to protect against Zeppelin attacks. It was also situated in proximity to a ready source of water at the Potomac River and easy access to coal supplies and railroad lines. After a series of delays, production began on Christmas Day, 1924 with a series of cellulose acetate commercial fabrics and yarns intended as alternatives to silk. The plant was closed in 1983, and was later torn down to provide a space for a new state prison.

Advanced engineered materials offers plastic polymers to customers in the automotive, electronics, telecommunications, and medical industries. Major products include engineered plastics for fuel system components (provided by Ticona, the engineering polymer business of Celanese), conveyor belts, electronics, safety systems, emissions filtration, and fluid handling. Polymer production is improved by the acquisition of SO.F.TER Group, Forlì, in Italy in 2016.In 1999, Hoechst spun off Celanese AG as a publicly traded German corporation, cross-listed on both the Frankfurt and New York stock exchanges as “CZZ” and “CZ”, respectively.

Celanese is one of the world’s largest producers of cellulose acetate. Acetate products are primarily used in cigarette filters, as well as in the production of fashion apparel and linings. Celanese also manufactures Clarifoil cellulose acetate film that is wood pulp based and certified biodegradable and compostable in home and industrial composting conditions.
Industrial specialties, using the feedstock from acetyl intermediates, manufactures polymer and emulsions such as polyvinyl acetate emulsions, and specialty chemicals as ethylene vinyl acetate. Major end-use markets include polyvinyl alcohol producers, paper, mortar and gypsum, textiles, paints, coatings, and adhesives manufacturers.Celanese bought operations of Imperial Chemicals Incorporated in 1982. This included the Fiber Industries Incorporated plant in Salisbury, North Carolina, a part of Invista since 2004.

Who is the largest consumer of methanol in the world?
The Asia-Pacific dominated the worldwide market with a significant market share. It is projected to maintain its dominance during the forecast period. China alone is the largest producer and consumer of over 60% of the world’s methanol, making the country the worldwide leader.
Celanese operates 25 production plants and six research centers in 11 countries, mainly in North America, Europe, and Asia. The company owns and operates the world’s three largest acetic acid plants: one in the Clear Lake area of Pasadena, Texas, one on Jurong Island in Singapore, and a third in Nanjing, China.The methanol market is fragmented, with top players holding insignificant shares to affect market demand individually. Some major players in the market (in no particular order) include SABIC, Proman, Ningxia Baofeng Energy Group Co. Ltd, Methanex Corporation, and ZPCIR.The COVID-19 pandemic drastically curtailed industrial activities due to imposed government bans and restrictions in 2020 and the first half of 2021, limiting the growth of the methanol market. The chemical industry was paralyzed due to scarce raw material supply, limited working hours/labor strength, reduced demand, and constrained financials. However, the chemical and petrochemical industries have been on track for recovery since the retraction of the pandemic in mid-2021. The exponential rise in demand for chemicals in end-user sectors continues to exert pressure, which is expected to contribute to the growth of the methanol market.

The methanol market is segmented by Application (Traditional Chemical (Formaldehyde, Acetic Acid, Solvent, Methylamine, Other Traditional Chemicals), Energy Related (Methanol-to-Olefin (MTO), Methyl Tert-butyl Ether (MTBE), Gasoline Blending, Dimethyl Ether (DME), Biodiesel), and Geography (Asia-Pacific, North America, Europe, South America, Middle East and Africa). The report also covers the market sizes and forecasts for the methanol market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done in terms of volume in kilo tons.
Mordor Intelligence’s images may only be used with attribution back to Mordor Intelligence. Using the Mordor Intelligence’s embed code renders the image with an attribution line that satisfies this requirement.The methanol market is estimated to reach over 92,700 kilo tons by the end of the current year. It is projected to register a CAGR of over 3.5% during the forecast period.

Methanol is a clear liquid chemical used in thousands of everyday products, including plastics, paints, cosmetics, and fuels. Methanol is also an energy resource used in the marine, automotive, and electricity sectors and an emerging renewable energy resource. Increasingly, methanol’s environmental and economic advantages make it an attractive alternative fuel for powering vehicles and ships, cooking food, and heating homes.
Thank you for your Purchase. Your payment is successful. The Report will be delivered in 24 – 72 hours. Our sales representative will reach you shortly with the details.We are always looking to hire talented individuals with equal and extraordinary proportions of industry expertise, problem solving ability and inclination.

Why is Buffett buying Celanese?
Buffett has always been bullish on companies that have sustainable advantages over their competitors and are already dominant in their markets. Because of the cost involved in producing chemicals, Celanese is not likely to face pressure from new startups in its field.
Statistics for the 2023 Methanol market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Methanol analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

What are the main products of Celanese?
Celanese is a global leader in the manufacturing of industrial grade chemicals, including acetic acid, vinyl acetate monomer, acetic anhydride and other specialty derivative products.
The Methanol Market is Segmented by Application (Traditional Chemical (Formaldehyde, Acetic Acid, Solvent, Methylamine, Other Traditional Chemicals), Energy Related (Methanol-to-Olefin (MTO), Methyl Tert-butyl Ether (MTBE), Gasoline Blending, Dimethyl Ether (DME), Biodiesel), and Geography (Asia-Pacific, North America, Europe, South America, Middle East and Africa). The report offers market sizes and forecasts in terms of volume in kilo tons for all the above segments.In addition, by using the embed code, you reduce the load on your web server, because the image will be hosted on the same worldwide content delivery network Mordor Intelligence uses instead of your web server.

Is Celanese still in business?
Celanese Corp. is headquartered in Dallas, Texas, and is the parent company of Celanese’s North American operations and Celanese AG. Henceforth, Celanese AG is the holding company for Celanese’s European operations and most of its Asian activities.
The Clear Lake plant of the Celanese Corporation opened in 1964. It is located in a petrochemical plant cluster in southern Pasadena that is separate from the rest of the Houston Ship Channel petrochemical corridor, near the Bayport Ship Channel. Celanese is one of the largest producers of acetyls, an intermediate petrochemical used in many other petrochemicals and plastics. Celanese has a few other plants in Texas, and is headquartered in Irving, Texas.View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. Compare your portfolio performance to leading indices and get personalized stock ideas based on your portfolio.

Identify stocks that meet your criteria using seven unique stock screeners. See what’s happening in the market right now with MarketBeat’s real-time news feed. Export data to Excel for your own analysis.
Get daily stock ideas from top-performing Wall Street analysts. Get short term trading ideas from the MarketBeat Idea Engine. View which stocks are hot on social media with MarketBeat’s trending stocks report.

Celanese has a net margin of 14.85% compared to Gold Fields’ net margin of 0.00%. Celanese’s return on equity of 23.75% beat Gold Fields’ return on equity.
Should you be buying Celanese stock or one of its competitors? The main competitors of Celanese include Gold Fields (GFI), Suzano (SUZ), Cameco (CCJ), Mosaic (MOS), FMC (FMC), International Paper (IP), CF Industries (CF), Bunge (BG), Eastman Chemical (EMN), and Westlake (WLK). These companies are all part of the “basic materials” sector.

Celanese currently has a consensus target price of $121.71, indicating a potential upside of 7.58%. Gold Fields has a consensus target price of $11.50, indicating a potential downside of 16.06%. Given Celanese’s stronger consensus rating and higher probable upside, analysts plainly believe Celanese is more favorable than Gold Fields.Celanese has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500. Comparatively, Gold Fields has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Celanese received 484 more outperform votes than Gold Fields when rated by MarketBeat users. Likewise, 65.02% of users gave Celanese an outperform vote while only 55.24% of users gave Gold Fields an outperform vote. In the previous week, Celanese had 20 more articles in the media than Gold Fields. MarketBeat recorded 21 mentions for Celanese and 1 mentions for Gold Fields. Celanese’s average media sentiment score of 0.09 beat Gold Fields’ score of -0.02 indicating that Celanese is being referred to more favorably in the media.Celanese pays an annual dividend of $2.80 per share and has a dividend yield of 2.5%. Gold Fields pays an annual dividend of $0.38 per share and has a dividend yield of 2.8%. Celanese pays out 20.6% of its earnings in the form of a dividend.

94.2% of Celanese shares are owned by institutional investors. Comparatively, 23.6% of Gold Fields shares are owned by institutional investors. 0.3% of Celanese shares are owned by insiders. Comparatively, 36.8% of Gold Fields shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Celanese (NYSE:CE) and Gold Fields (NYSE:GFI) are both large-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, media sentiment, valuation, dividends, risk, institutional ownership, community ranking, analyst recommendations and profitability.The Clear Lake methanol unit was commissioned in October of 2015 as a joint venture between Celanese and Mitsui & Co., Ltd., of Tokyo, Japan (NASDAQ: MITSY), with an annual capacity of 1.3 million metric tons. The unit utilizes abundant, low-cost natural gas in the U.S. Gulf Coast region as a feedstock. The joint venture operates as Fairway Methanol LLC, with both Celanese and Mitsui maintaining a 50/50 ownership. This carbon capture and reuse process is expected to produce sustainable methanol with a high capital efficiency at competitive pricing via an expansion of the company’s Fairway joint venture. The methanol production unit at the Clear Lake facility, operated as Fairway Methanol LLC, is a manufacturing joint venture between Celanese and Mitsui & Co., Ltd., and will contribute to the sustainability targets of both companies. Celanese has quite a few growth catalysts, such as the acetic acid expansion at Clear Lake, debottlenecks and capacity expansions. Currently, the engineering materials segment also offers growth opportunities due to increased demand for electric vehicles, medical and pharmaceutical products, 5G and sustainability. Therefore, Celanese has significantly increased its capacity to meet growing demand. The expansion has led to a dramatic rise in debt levels. The 7.5x debt to EBITDA ratio concerns me greatly. Yet this need not be a problem if profits do not continue to decline. Clear Lake’s expansion is expected to add $100 million annually to profits starting in 2024. Therefore, I see no reason to panic; Celanese therefore offers a buying opportunity.As a result of lower commodity prices, I anticipate a rise in price spread. In the long term, I see strong growth catalysts such as growth in electric vehicles and also medical systems. Also, the expansion of the acetyl chain provides a strong addition to earnings. One caveat, however, is that a possible recession could throw a spanner in the works. The treasury yield slope has been negative for some time now, which could indicate a possible recession in the coming year. The automotive end market is cyclical, so this risk spills over to Celanese as well. Fortunately, the acetyl chain is less cyclical because of the many end markets in the food industry.The recent acquisition has led to large increases in debt, and total debt is now about $14.7 billion. The debt to EBITDA ratio of 7.5x is extremely high in my opinion. Interest coverage is also at a dangerously low level of only 2, while Ben Graham recommends at least 5 in his book Security Analyses. On a positive note, liquidity is more than adequate at $1.5 billion.What makes Celanese (NYSE:CE) interesting are its strong growth catalysts, as well as its attractive valuation. The stock price has already corrected significantly since its all-time high in late 2021. Celanese is an American company specializing in chemical and specialty materials, and high-performance engineered polymers.Despite the strong improvement from Q4 2022, I still see challenges. Volumes of engineering materials fell, excluding the M&M acquisition. However, Clear Lake’s expansion will help meet the persistently high demand in the acetyl chains market. The sales prices remain uncertain and demand will not yet be strong enough to justify a price increase in the acetyl chain segment. Therefore, for the second quarter, Celanese expects adjusted earnings per share of $2.50 as the price recovery in the acetyl chain becomes apparent.

Warren Buffett has not explained why he invests in Celanese; he almost never does for his stocks. What is further interesting is that Markel (MKL) has also taken a stake in Celanese. Markel is often called the “baby Berkshire” because of the capital strategy similar to Berkshire Hathaway’s. Both Tom Gayner (CEO of Markel) and Warren Buffett are renowned investors who have grown their insurance portfolios solidly over the years.
About all of free cash flow is spent on dividends and share repurchases. About $300 million is paid out annually as dividends, representing about 17% of free cash flow. This is easy to sustain in the long run. The remainder will be returned as share buybacks which could increase the dividend per share. Due to the decreased share price, the dividend yield is currently 2.5%. I expect the dividend to increase further after the completion of the Clear Lake facilities. I do not expect the substantial dividend increase to occur until after 2024.

Revenues from the engineering materials segment also showed strong growth, increasing 32% sequentially. In addition to the strong sales growth, EBIT also increased substantially with 56% during the same period. Demand for engineering materials increased sequentially with volume growth of 34%, due to the acquisition of M&M and growth in end markets. The demand for engineering materials in the automotive industry is particularly strong. Higher demand for electric vehicles will drive further volume growth. Nevertheless, the dynamic pricing model remains highly competitive. The decrease in raw material and energy costs is beneficial to the profit margin of this segment, but also affects sales prices.
The acetic chain segment is Celanese’s most profitable segment with an EBIT margin of 25% compared to 13% for the engineering materials segment. Celanese expanded its acetic acid production in Clear Lake which significantly increased revenues. Revenues in this segment increased 10% sequentially due to strong volume growth partially offset by lower prices. The acetic chain segment has challenging pricing dynamics due in part to energy price volatility and higher costs. Celanese tactically responded to gain from its geographic supply and demand to still have strong profit margins despite increased raw material prices. With an adjusted EBIT margin of 25%, it was up from 21% in the fourth quarter of 2022.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
The outlook for the acetic acid chain business segment is positive because of the completion of the new acetic acid production plant in Clear Lake, which will increase profits by another ± $100 million from 2024. I see this as a strong catalyst.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in CE over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Who are Celanese top competitors?
The main competitors of Celanese include Suzano (SUZ), FMC (FMC), Gold Fields (GFI), CF Industries (CF), Mosaic (MOS), Cameco (CCJ), Bunge (BG), International Paper (IP), Westlake (WLK), and AngloGol
d Ashanti (AU). These companies are all part of the “basic materials” sector.
One of Celanese’s many shareholders is Warren Buffett’s Berkshire Hathaway (BRK.A)(BRK.B), which first bought the stock in the first quarter of 2022. Its position was increased until the fourth quarter of 2022, after which it was reduced by 9%. Currently, Berkshire owns about $1 billion worth of Celanese company shares, giving it such a significant stake of more than 8%. So, there is clearly a lot of confidence in the company. Yet the share price has fallen considerably since its initial purchase. The share price at the beginning of 2022 was about $170, so the share price is down 36%. Many analysts expect growth in adjusted earnings per share starting in 2024. In 2025, 22 analysts expect adjusted earnings per share of $16, bringing the forward P/E ratio for 2025 to 7x. The forward P/E ratio of companies in the specialty chemical segment is 16x, so Celanese is very attractively valued in the sector. I think investors have punished Celanese too harshly. The company has strong growth catalysts and is significantly increasing its production volumes. Some end markets may be cyclical in nature, but this risk is already well embedded in Celanese’s share price. Investors do need to consider an upcoming recession, which could throw a spanner in the works in the auto manufacturing market that directly affects Celanese’s results. I also consider the high debt as a major risk. Weighing the risk against the reward, I arrive at a buy rating. Forward-Looking Statements: This release may contain “forward-looking statements,” which include information concerning the company’s plans, objectives, goals, strategies, future revenues or performance, capital expenditures and other information that is not historical information. When used in this release, the words “outlook,” “forecast,” “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based upon current expectations and beliefs and various assumptions. There can be no assurance that the Company or its customers will realize these benefits or that these expectations will prove correct. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements contained in this release. Numerous other factors, many of which are beyond the Company’s control, could cause actual results to differ materially from those expressed as forward-looking statements. Other risk factors include those that are discussed in the Company’s filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made, and the Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances.Linde is a leading global industrial gases and engineering company with 2019 sales of $28 billion (€25 billion). We live our mission of making our world more productive every day by providing high-quality solutions, technologies and services which are making our customers more successful and helping to sustain and protect our planet.The new air separation unit is also connected to Linde’s nitrogen and oxygen pipeline network which enables safe and reliable supply to Celanese as well as other customers in the area.

The company serves a variety of end markets including chemicals & refining, food & beverage, electronics, healthcare, manufacturing and primary metals. Linde’s industrial gases are used in countless applications, from life-saving oxygen for hospitals to high-purity & specialty gases for electronics manufacturing, hydrogen for clean fuels and much more. Linde also delivers state-of-the-art gas processing solutions to support customer expansion, efficiency improvements and emissions reductions.
“We are proud to be a key supplier to Celanese and further strengthen our relationship through various long-term projects with this world-class company,” said Jeff Barnhard, Vice President South Region, Linde. “The new plants, along with our pipeline network, are uniquely positioned to safely and reliably supply Celanese and other valued customers in the U.S. Gulf Coast. These projects will also support our merchant liquid business customers in the region.”Guildford, UK, July 7, 2020 – Linde (NYSE: LIN; FWB: LIN) today announced it has started up a state-of-the-art hydrogen and carbon monoxide facility in Clear Lake, Texas (TX), as well as a new air separation unit in LaPorte, TX. The plants will supply oxygen, nitrogen and carbon monoxide to Celanese, under a previously announced long-term agreement, and hydrogen to other customers via Linde’s U.S. Gulf Coast pipeline system.

What is Celanese known for?
Celanese is one of the world’s largest producers of cellulose acetate. Acetate products are primarily used in cigarette filters, as well as in the production of fashion apparel and linings.
Headquartered in Vancouver, Canada, Methanex currently operates production sites in Canada, Chile, Egypt, New Zealand, Trinidad and Tobago and the United States.We are Methanex: the world’s largest producer and supplier of methanol to major international markets in North America, Asia Pacific, Europe and South America.

Methanex Corporation is the world’s largest producer and supplier of methanol to major international markets in North America, Asia Pacific, Europe and South America. The Power of Agility® is our key differentiator and how our global team of employees delivers on our brand promise everyday.The Power of Agility® is our key brand differentiator and is how our global team of approximately 1,400 employees safely and reliably delivers on our brand promise everyday by quickly adapting and responding to our customers’ needs and creating and capitalizing on opportunities in the marketplace.

Our global operations are supported by an extensive global supply chain of terminals, storage facilities and the world’s largest dedicated fleet of methanol ocean tankers.
The company serves a variety of end markets including chemicals & energy, food & beverage, electronics, healthcare, manufacturing, metals and mining. Linde’s industrial gases are used in countless applications, from life-saving oxygen for hospitals to high-purity & specialty gases for electronics manufacturing, hydrogen for clean fuels and much more. Linde also delivers state-of-the-art gas processing solutions to support customer expansion, efficiency improvements and emissions reductions.

What is the capacity of Celanese methanol?
The facility currently has the capacity to manufacture 1.43 million metric tons of methanol per year, a feedstock for other manufactured products.
“Linde’s products and technologies can assist customers in finding ways to produce essential chemicals with a lower carbon intensity,” said Jeff Barnhard, Vice President South Region, Linde. “By capturing the carbon dioxide from our production facility and providing this to Celanese for use in their process, we are helping them to reduce their carbon footprint while also lowering Linde’s own carbon emissions.”

“Celanese is taking strategic steps aimed at reducing our operational impact globally, and the work we are doing with recycled carbon dioxide at our Clear Lake facility is a significant step forward in our efforts to preserve the environment and be a responsible community partner,” said John Fotheringham, Senior Vice President, Acetyls, Celanese. “By working with Linde, we expect to produce lower carbon intensity methanol with a high capital efficiency at a competitive cost.”

Linde currently supplies oxygen, nitrogen and carbon monoxide to the Clear Lake facility. Under the terms of the expanded agreement, Linde will now also supply carbon dioxide captured in its nearby carbon monoxide production facility. Celanese will use the carbon dioxide, plus hydrogen, as an alternative feedstock to produce methanol with a significantly lower carbon intensity in their Fairway Methanol LLC joint venture. By using the carbon dioxide captured from Linde’s facility, the hydrogen supplied by Linde will also have a lower carbon intensity. Supply is expected to commence in the first half of 2023.
Guildford, UK, February 7, 2022 – Linde (NYSE:LIN; FWB:LIN) announced today it has expanded its existing agreement with Celanese Corporation, a global chemical and specialty materials company, and will begin supplying carbon dioxide and hydrogen to the Celanese manufacturing facility in Clear Lake, Texas.

Linde is a leading global industrial gases and engineering company with 2020 sales of $27 billion (€24 billion). We live our mission of making our world more productive every day by providing high-quality solutions, technologies and services which are making our customers more successful and helping to sustain and protect our planet.