Eastman Acquires Option For Terra Unit

Terra Industries has given Eastman Chemical an option to purchase its ammonia and methanol facility in Beaumont, Texas. The plant, which has capacity to make 225 million gal of methanol and 255,000 metric tons of ammonia per year, has been idle since December 2004. Eastman says the facility is a potential site for a new coal gasification plant. Last fall, Eastman unveiled plans to build a gasification plant on the Gulf Coast. Methanol made in the process would be shipped to the company's Longview, Texas, facility for further processing into propylene and then downstream chemical products.