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Board approves methanol supply contract at $6.95 per gallon amid market volatility
Summary
The Board approved a contract with Solvents and Petroleum Service to provide 100% methanol at $6.95 per gallon through 06/30/2027; commissioners discussed large price swings from previous suppliers and the tradeoffs of 100% vs. 95% product mixes.
The Board approved a contract with Solvents and Petroleum Service for 100% methanol at $6.95 per gallon to replace an expiring Saybrook supply agreement. Commissioners discussed prior pricing and market volatility; one commissioner noted Saybrook’s new quoted price had been as high as $12 per gallon and another participant mentioned prices up to $23 per gallon for certain products.
Director Scott explained why the town purchases 100% methanol rather than a cut‑blend: "Oddly enough, it's not that much cheaper... the process of cutting it to 95% actually adds cost," he said, citing distribution and packaging costs. The board moved and approved the contract, which the director said could be renewed (the agreement allows renewals up to two years under the presented terms).
