South Louisiana Methanol LP has signed an agreement to receive a significant amount of natural gas for its proposed $1.3 billion St. James Parish facility from Transcontinental Gas Pipe Line Co. LLC.

South Louisiana Methanol LP is a natural gas-to-methanol project owned by The Todd Corp., a private family-owned New Zealand company, and ZEEP Inc. in Austin, Texas.

“This agreement is a crucial step on the road to building North America’s largest methanol plant,” said SLM Chief Executive Officer Barry Williamson.

The 10-year agreement stipulates that Transco will construct infrastructure and provide transportation from Transco’s Station 65 to the SLM facility. The Transco pipeline system stretches from south Texas to New York City and is a major provider of natural gas to the northeastern and southeastern states.