Vancouver-based Methanex Corp. (TSX:MX) has announced it plans to restart a mothballed methanol plant at its Motunui site in New Zealand. That plant is expected to start production in mid-2012.
The company also announced it is has signed a 10-year agreement with New Zealand-based Todd Energy to supply natural gas for up to half of the 1.5 million tonnes of annual capacity at the Motunui site.
“Based on the improved natural gas supply position that has developed in New Zealand over the past several years, we are delighted to announce the restart of a second plant in New Zealand,” Methanex president and CEO Bruce Aitken said in a press release.
Aitken added the company has entered into the long-term gas supply agreement.
“The quantity of gas supply under this contract potentially allows us to produce about 7.5 million tonnes of methanol over the next 10 years, representing multi-billion dollars of revenues,” he said.
Methanex has also announced plans to move one of its idle methanol plants in Chile to Geismar, Louisiana. The plant is expected to be operating in 2014’s second half.
“The outlook for low North American natural gas prices makes Louisiana an attractive location in which to produce methanol,” Aitken said. “It is also a large methanol-consuming region, possesses world-class infrastructure, skilled workers and is a positive environment in which to do business.”
After both pieces of news were announced yesterday, Methanex’s stock increased by nearly 2%. At press time this morning, it was up by a further 1.9% to $27.30.
Jenny Wagler
@JennyWagler_BIV