Transition, MGC Sign Methanol Deal for Sinaloa Project

Transition Industries LLC and Mitsubishi Gas Chemical Company (MGC) have signed a letter of intent for a long-term methanol supply agreement  tied to Pacífico Mexinol, a large-scale methanol production facility planned for northern Sinaloa. The plant, to be built in Paredones, Ahome, will have a projected annual capacity of 2.1 million tons, making it one of the world’s largest producers of ultra-low-carbon methanol.

Under the agreement, Transition Industries will supply MGC with around 1 million metric tons of ultra-low-carbon methanol per year—approximately half of the plant’s total output—for an initial 10-year term, with an option to extend. The deal ensures long-term market stability in Asia, particularly Japan, and positions Sinaloa as a key supplier of clean energy feedstocks and sustainable chemicals.

The signing ceremony included representatives from both companies and the Sinaloa state government, with State Economy Minister Feliciano Castro Meléndrez attending as a witness on behalf of Governor Rubén Rocha Moya. Participants also included Transition Industries CEO Rommel Gallo, MGC executive Masahiko Naito, and Sergio Sierra Bernal, Economic Affairs Officer at the Mexican Embassy in Japan.

Castro said the project represents one of the largest investments in Sinaloa’s history, estimated at more than US$3.3 billion. He emphasized that Pacífico Mexinol aligns industrial growth with sustainability and international cooperation, noting its scale places it among the largest methanol plants worldwide. The project, he added, will advance regional energy transition goals and support balanced economic development.

The minister also highlighted support from the US government through the International Finance Corporation (IFC) and the importance of strategic partnerships like the one with MGC in ensuring long-term operational resilience. He underscored the site’s strategic location near the port of Topolobampo, recently designated by President Claudia Sheinbaum as a national development hub, and reaffirmed the state’s commitment to providing legal certainty, labor stability, and institutional coordination.

Transition Industries CEO Rommel Gallo described the agreement as a key milestone in advancing low-carbon industrial processes. He said the partnership strengthens the company’s mission to deploy next-generation technologies for ultra-low-carbon methanol production and to accelerate sustainable manufacturing across the Asia-Pacific region.

MGC’s Masahiko Naito noted that the collaboration supports the company’s Carbopath program, which promotes carbon circularity and emissions reduction across industrial sectors. He said the project represents a major step in expanding the global supply of ultra-low-carbon methanol and advancing the transition to cleaner energy systems.

The announcement follows development milestones reached in June, when Transition Industries signed key agreements in Mexico City. Participants included Grupo Maire (NextChem) for engineering and process technology, Samsung, and Techint for construction, and Siemens for automation and energy control systems. Governor Rocha also attended that event, reaffirming the state’s support.

The IFC, part of the World Bank Group, has joined as a financial partner, supporting the project’s development. Transition Industries expects Pacífico Mexinol to create more than 4,500 direct and indirect jobs and establish a new hub for industrial and technological innovation in northwestern Mexico. The methanol produced will serve industries including chemicals, pharmaceuticals, automotive, food processing, and energy, with most exports bound for Asia.