Methanex Progresses DME Project in Egypt
December 11 2007 - 9:00AM
Marketwired
VANCOUVER, BRITISH COLUMBIA plant in China, Methanex (TSX:
MX)(NASDAQ: MEOH)(SANTIAGO: Methanex) has executed a Memorandum of
Understanding for the development of a similar plant in Egypt. This
new plant will have a capacity of 200,000 tonnes of DME per year
and will consume approximately 300,000 tonnes per year of
methanol.
The Egyptian DME joint venture will include Methanex and XinAo
Group (Methanex's DME joint venture partner in China) as minority
participants, with the government owned Egyptian Petrochemicals
Holding Company (Echem) holding the majority interest. Echem is
also a 12% participant in the EMethanex methanol joint venture
currently under construction in Egypt.
Bruce Aitken, President and CEO of Methanex, commented, "The
development of this DME project in Egypt demonstrates further
progress towards two of our key strategic objectives. First, it
expands Methanex's relationship with Echem, underlining our
commitment to support host country objectives, such as energy
supply. And second, it reinforces our conviction that methanol has
an exciting growth opportunity in the energy sector, which we are
pursuing."
Mr. Aitken added, "Egypt is a significant importer of LPG, and
the DME produced will be blended into the domestic LPG supply for
use in homes, thus decreasing the country's reliance on LPG
imports."
Michael Macdonald, Methanex's Senior Vice President, Corporate
Development, who is also responsible for the Company's activities
in Egypt, remarked, "The DME project will be located adjacent to
Methanex's joint venture methanol plant currently under
construction at Damietta, on Egypt's Mediterranean Coast. This
plant is expected to employ the same design and technology deployed
in China and provided by XinAo Group, a leading energy provider in
China."
Mr. Macdonald continued, "We are very pleased that XinAo, our
joint venture partner in China, will join us in this DME project in
Egypt. XinAo's technology and experience in the DME industry in
China will facilitate the successful implementation of this
project."
DME is a methanol derivative with properties similar to
liquefied petroleum gas (LPG). It can be blended with LPG up to
approximately 20 percent weight without any need to change delivery
infrastructure or the applications where it is burned, such as home
heating and cooking. While the market for DME blending into LPG for
domestic purposes is already large, applications are being
developed for DME as a replacement for diesel fuel in the transport
sector, notably in Japan, where demonstration projects are already
underway.
Methanex is a Vancouver based, publicly traded company engaged
in the worldwide production, distribution and marketing of
methanol. Methanex shares are listed for trading on the Toronto
Stock Exchange in Canada under the trading symbol "MX", on the
NASDAQ Global Market in the United States under the trading symbol
"MEOH", and on the foreign securities market of the Santiago Stock
Exchange in Chile under the trading symbol "Methanex". Methanex can
be visited online at www.methanex.com.
Information in this press release contains forward-looking
statements. Certain material factors or assumptions were applied in
drawing the conclusions or making the forecasts or projections that
are included in these forward-looking statements. Methanex believes
that it has a reasonable basis for making such forward-looking
statements. However, forward-looking statements, by their nature,
involve risks and uncertainties that could cause actual results to
differ materially from those contemplated by the forward-looking
statements. The risks and uncertainties include those attendant
with producing and marketing methanol and successfully carrying out
major capital expenditure projects in various jurisdictions, the
ability to successfully carry out corporate initiatives and
strategies, conditions in the methanol and other industries
including the supply and demand balance for methanol, actions of
competitors and suppliers, actions of governments and governmental
authorities, changes in laws or regulations in foreign
jurisdictions, world-wide economic conditions and other risks
described in our 2006 Management's Discussion & Analysis. Undue
reliance should not be placed on forward-looking statements. They
are not a substitute for the exercise of one's own due diligence
and judgment. The outcomes anticipated in forward-looking
statements may not occur and we do not undertake to update
forward-looking statements.
Contacts: Jason Chesko Director, Investor Relations Methanex
Corporation 604 661 2600 or Toll Free: 1 800 661 8851 Website:
www.methanex.com
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