At least one subcontractor is still owed $2.9 million in unpaid work following the construction of a methanol plant in Geismar, La. owned by Methanex USA, the world’s largest supplier of methanol.
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Both subcontractors worked under general contractor Progressive Pipeline Construction, LLC. A mechanics lien prevents a property’s sale or refinancing while active, which helps force payment for unpaid contractors.
Methanex USA’s new $1.4 billion methanol plant is set to become operational by the second half of 2022, according to a report from Natural Gas Intelligence from July of 2019. The new plant will mark Methanex USA’s third methanol facility at their headquarters in Geismar.
“Compared to a standalone U.S. Gulf greenfield plant, this project benefits from substantial capital and operating cost advantages, and we expect will deliver outstanding returns,” Methanex CEO John Floren told Natural Gas Intelligence in 2019.
One Subcontractor Owed $2.9 Million
Warrior Field Services’ is allegedly still owed $2,905,000 for their part in constructing Methanex USA’s third methanol plant, located at 4279 LA-73, Geismar, LA.
According to the lien affidavit, Warrior Field Services last serviced the job site on June 20, 2020.
The subcontractor provided horizontal directional drilling to the methanol plant while working under Direct Tech Drilling.
On July 15, the subcontractor submitted two invoices that totaled $2,680,000 in unpaid work. By June 22, Warrior Field Services processed another invoice valued at $225,000, resulting in the sub’s mechanics lien filing of $2.9M.
Methanex New $1.4B Methanol Plant
Methanex USA’s new facility in Geismar consists of a 1.8 million metric ton/year methanol plant. This third facility is now located adjacent to Methanex USA’s two previous methanol plants.
By July of 2019, total costs at the plant had reached $60M.
In September of 2019, the Advocate reported that fellow industrial gas supplier Air Liquide invested over $270 million into their own infrastructure located in Geismar to support Methanex USA’s new plant.
Both Air Liquide’s headquarters in Geismar and Methanex USA are separated by just under 2 miles along Louisiana Highway 30.
Air Liquide’s investment involved the creation of two new air separation units that will reportedly manage 2,500 tons of oxygen per day. The air separation units and additional undisclosed infrastructure contributed by Air Liquide will be connected to Methanex USA’s Mississippi River pipeline.