Long-term firm natural gas transportation capacity on Transcontinental Gas Pipe Line, or Transco, was secured by Yuhuang Chemical Inc. (YCI) for its methanol manufacturing complex, YCI said Aug. 10.

The complex costs US$1.85 billion, the North American subsidiary of China’s Shandong Yuhuang Chemical Co. Ltd. added. This is the company’s first major project in St. James Parish, La. The project will have three phases. Construction will begin on the first during the fourth quarter of 2015.

YCI-M1 will produce 1.7 million metric tonnes per year of commercial-grade methanol. There is a 20-year agreement for transportation capacity from points in Transco’s Zone 3 to a new interconnection with the plant. This interconnection will be built and operated by Transco, the company said.

Shandong Yuhuang produces and markets propylene, isobutene, butadiene, isoprene, Styrene, Toluene, and other chemicals.

Williams Cos. Inc.’s Transco Pipeline is the largest country, running from Texas to New York.