The Canadian methanol producer Nauticol Energy Ltd. plans to build a "world-scale" methanol manufacturing facility worth C$2 billion in Grande Prairie, Alberta.

The facility would be capable of producing up to 3 million tonnes of methanol per year from natural gas, according to an Oct. 9 news release. Most of the production would be exported to Asian markets, which represents about 70% of global demand for methanol, but some would go to local markets. Methanol is used as an alternative fuel, a primary driver for the increase in global demand.

Nauticol entered into a memorandum of understanding with the Western Cree Tribal Council, making it an equity participant in the project. The council is an association of First Nations.

The project is expected to generate about 1,000 construction jobs and 200 permanent jobs in the province and to begin construction in 2019, pending regulatory approvals.