As part of its investment, affiliates of Koch Methanol will receive the exclusive methanol offtake rights from the new facility, as well as construct, own and operate the methanol terminal assets for the outbound flow of methanol.

"The progress Yuhuang's methanol project has made amid challenges these days indicates that China and the United States are highly complementary in economic structure and trade," said Xu Chen, chairman of the China General Chamber of Commerce-USA (CGCC), which represents more than 1,500 Chinese and US companies.

Yuhuang's methanol production facility will be capable of producing approximately 1.7 million metric tons of methanol per year.

Methanol is used in the manufacturing of countless everyday products, including plywood, carpet, fuels and plastics.