A projected 70% increase in annual world demand for methanol to 50 tonnes between now and 2020, fuelled by China and other Asian markets, are music to the ears of Peter Middleton, chairman of Aim-listed GTL Resources. The company has a £275m project to produce methanol, an ingredient for formaldehyde, petrol blending compounds, anti-freeze, polyesters, speciality chemicals and other substances, at its Liquigaz plant at Dampier in Western Australia. Australian groups Apache and Santos are to supply gas feedstock. Long-term design, construction and shipping arrangements are in place and Swiss group Vitol is to take 90% of production for 15 years at a price related to the input gas price and 10% at spot. Four banks are providing £184m 'non-recourse' financing and project partners have put in £70m equity. GTL reached agreement last year with aboriginal groups over Native Title at Dampier and production is scheduled to start in late 2005 at more than a million tonnes per year. Middleton expects GTL to receive around $160 a tonne. He claims costs will be below $100, implying - if gas and methanol prices do not plunge - significant future profits for GTL, which lost £1.2m in the six months to last September. GTL recently raised £1.2m for legal and other project-related costs and further fundraisings are on the cards. Worth a gamble.