In the energy and petrochemicals sector, innovation and sustainability are becoming increasingly important. For Caribbean Gas Chemical Limited (CGCL), a company that has swiftly risen to prominence since its commercial operations began in 2020, these values are not just corporate buzzwords, but core principles that guide their day-to-day operations. Business Enquirer sat down with CEO Mr Keio Kato and Mr Sieunarine Ramkumarsingh, General Manager of Plant Operations at CGCL, to learn more about their journey, achievements, and the exciting opportunities that lie ahead.
A Strong Foundation in Methanol Production
CGCL is a joint venture company established by a mix of local and international stakeholders, which include Mitsubishi Gas Chemical Company Inc., Mitsubishi Corporation, Mitsubishi Heavy Industries Ltd., and two partners from Trinidad and Tobago, the National Gas Company and Massy Holdings Limited. CGCL’s core business is the production and sale of methanol, a vital ingredient in a variety of industries, including chemicals, plastics, and fuel. Located in the southwestern part of the island of Trinidad and Tobago, the company’s facility, is designed to produce 1 million metric tons of methanol annually, with a secondary capacity to produce di-methyl-ether (DME), a key industrial solvent or aerosol. Construction of the Plant began in 2016, and by 2020, CGCL commenced commercial operations, marking a significant milestone for the company and for the region.
“From the outset, our vision was clear: to establish a state-of-the-art facility that would not only meet global demand for methanol but also contribute positively to the local economy,” said Sieunarine. “Our facility has been running at full capacity since 2020, producing high-quality methanol that meets international standards, and we’re proud to say that we’ve never had to announce a force majeure since starting operations.”
Mr Keio Kato’s Career Journey
Mr Keio Kato’s career at CGCL is a testament to his dedication and expertise in the chemical and petrochemical industry. After joining Mitsubishi Gas Chemical, as a chemical engineer in 1999, he spent eight years honing his skills before transitioning to a role as a process licenser in the methanol business in 2007. With a wealth of experience in this field, Mr Kato progressed to the position of technical support manager, where he collaborated with various teams to solve complex technical challenges, while ensuring compliance with quality standards.
His leadership abilities were recognized when he was appointed as Director of a joint venture company, a role he held before being named CEO of CGCL in June 2024. Reflecting on his journey, Mr Kato’s steady rise through the ranks highlights his expertise, problem-solving skills, and commitment to driving progress within the company.
Achievements Since Launch
The company’s rapid progress since launching in 2019 is a testament to the hard work and dedication of the entire team. “In December 2020, we achieved commercial operation status, and by October 2024, we shipped our 200th cargo of methanol,” Sieunarine noted. “It’s a significant achievement, considering the global challenges the industry has faced.”
CGCL’s commitment to quality has also been recognized with ISO 9001 certification, a global standard for quality management systems. This certification affirms the company’s ability to consistently deliver products that meet both customer and regulatory requirements.
The company’s dedication to operational excellence is also reflected in its technical innovations. “Our methanol production process is licensed by Mitsubishi Gas Chemical, incorporating cutting-edge intellectual property that has led to an onstream factor of over 97%,” Sieunarine explained. “This, combined with our efficient natural gas consumption, has helped us remain competitive on the global stage.”
Caribbean Roots
When asked about the advantages of establishing CGCL’s operations in Trinidad and Tobago, Kato was quick to highlight the strategic importance of the location. “Trinidad is one of the world’s largest exporters of methanol, and the island’s infrastructure, combined with its natural gas resources, makes it an ideal location for our operations,” he said.
The company’s decision to establish its plant in the southwest of Trinidad has also helped boost the local economy, particularly in the early stages of construction, providing jobs and fostering knowledge transfer between Trinidad and Japan. “The foreign direct investment (FDI) of $1 billion US from both our Japanese and local shareholders speaks volumes about the confidence they have in Trinidad and Tobago as a hub for energy and petrochemicals,” Sieunarine explained.
Investing in the Community
One of the standout features of CGCL is their strong commitment to corporate social responsibility. The company has focused much of its efforts on the community of La Brea, where its plant is located. At the peak of construction, CGCL employed approximately 3,000 workers from within its local and fence line areas, and today, several of its permanent staff members come from the surrounding region.
CGCL’s corporate social responsibility initiatives focus on five main pillars: education, community health, sports, culture and community development. A key partnership has been with the University of the West Indies (UWI) to provide scholarships and bursaries to students from La Brea and nearby areas. “Education is one of the cornerstones of our community development efforts,” Sieunarine explained. “This partnership has resulted in 20 bursary and 14 scholarship awardees receiving financial support from CGCL over the past 4-5 years. These students have since graduated.”
The company has also led and supported initiatives that assists other needy students in the community, including a reading fluency programme that reaches around 1,500 primary school students. Additionally, two Learning Support Centres have been established in collaboration with the La Brea Association for Innovation (LBAFI), that prepares ‘at risk’ students for the national secondary assessment examinations. CGCL’s CSR investments over the years total over 8 million Trinidad and Tobago dollars, underscoring the company’s commitment to improving the social and economic well-being of the local area.
Sustainability: A Core Focus
Sustainability is at the heart of CGCL’s operations. Sieunarine explained that the company’s greenhouse gas emissions reduction strategy aligns with both National and Global sustainability goals. “We’ve committed to reducing our emissions by 5% by 2030, in line with the Paris Agreement,” he said. The Paris Agreement, defined in 2015 aims to limit the rise in global temperatures to well below 2C, above pre-industrial levels. CGCL is already making strides in this regard. For example, the company decommissioned an incinerator in 2021, reducing CO2 emissions by over 5,000 tonnes annually, a powerful nod to their dedication to this agreement. More recently, it stopped using a natural gas booster compressor motor, which has led to an additional 10,000 tonnes of CO2 savings per year. Looking to the future, CGCL is exploring renewable energy sources, and has submitted a proposal for a green hydrogen pilot project, to further reduce its carbon footprint.
Growth and Expansion Plans
CGCL is focused on expanding its reach and continuing to innovate. “Currently, we are serving markets in the United States, Europe, and Asia, but we are looking to expand into South America, where there is growing demand for methanol,” Sieunarine said.
The company is also exploring opportunities within the emerging low-carbon marine fuel market, as Trinidad and Tobago move towards becoming a hub for low-carbon marine bunkering. “Given our expertise in methanol, we see a real opportunity to contribute to the development of low-carbon marine fuels, which will help to reduce global emissions,” Sieunarine said.
Overcoming Challenges and Embracing Opportunities
Of course, CGCL has faced its share of challenges since its inception. “Fluctuating global methanol prices and utility constraints have presented hurdles, but we’ve navigated these challenges through careful planning and innovation,” Sieunarine acknowledged. However, he remains optimistic about the future, particularly with the growing emphasis on sustainability and clean energy.
“We believe that methanol, with its high hydrogen-to-carbon ratio, has an important role to play in the transition to a low-carbon economy,” Sieunarine concluded. “We’re excited to be part of that journey, and we’re committed to continuing to innovate, invest in our people and communities, and deliver value to our shareholders and customers.”
Looking Ahead
As CGCL moves forward, its mission remains clear: to consistently deliver high-quality products, reduce its environmental impact, and contribute to the local community. With ambitious sustainability goals, a commitment to innovation, and plans for future growth, the company is positioning itself to thrive in the rapidly evolving global methanol market.
The CEO’s closing words encapsulated the company’s vision: “Our goal is to be a leading, sustainable producer of methanol and an active player in the global energy transition. We want to create lasting value for our shareholders, our employees, our customers and the community.”
As CGCL continues to grow, one thing is clear: this is a company that is not only shaping the future of the methanol industry but also making a meaningful difference in the world around it.