Methanex idles Chile operations

Methanex Corp. (TSX:MX) on January 10 announced plans to idle its Chilean operations in March due to anticipated insufficient natural gas supply.
Harvesting Chile plants: Methanex is spending $550 million to relocate this methanol plant from Chile to Louisiana

Methanex Corp. (TSX:MX) on January 10 announced plans to idle its Chilean operations in March due to anticipated insufficient natural gas supply.

Only one of the company’s four Chilean plants are currently operating and it represents less than 5% of the company’s total production.

“Due to continued natural gas supply challenges, we do not expect to have sufficient feedstock to keep our Chile plant operating through the southern hemisphere winter,” said John Floren, who took over from Bruce Aitken as the company’s CEO at the start of the year.

“Our current expectation is that resumption of our plant operation would be possible later in the year.”

Methanex last year embarked on a plan to spend $550 million to move one of its idled Chilean plants to Louisiana.

Relocating that plant was expected to create 1,500 jobs during the construction phase and 130 full-time jobs when it goes into production by the end of 2014.

gkorstrom@biv.com

@GlenKorstrom

comments powered by Disqus

More from Mining & Energy

Fort St. John mayor critical of Vancouver natural gas phase-out

City plans to eliminate natural gas from residential, institutional and commercial buildings by 2050; impact on Peace Region economy unclear

Read Article

American conservationist buys, restarts mothballed B.C. coal mines

Mines’ steelmaking coal would be bundled with carbon offsets

Read Article

Steelmaking coal gets on a roll

Price rise, mine acquisitions send positive signals

Read Article

Mining companies to build LNG plant in Fort Nelson

A $200 million LNG plant in Fort Nelson will supply LNG to new mines in the Yukon

Read Article

Enbridge agrees more consultation needed on Northern Gateway

Northern Gateway agrees with court ruling that more consultation is needed on pipeline

Read Article

Subscribe to our mailing lists

* indicates required

Newsletters

* You can modify your newsletter subscriptions at the bottom of any newsletter you receive.
×