Methanex Announces Agreement With ENAP to Source Natural Gas for Chile Operations
May 05 2008 - 3:19PM
Marketwired
VANCOUVER, BRITISH COLUMBIA (NASDAQ: MEOH)(SANTIAGO: Methanex)
announced today that it has signed an agreement with ENAP (the
Chilean state-owned oil and gas company) to accelerate gas
exploration and development in the Dorado Riquelme exploration
block and supply new Chilean-sourced natural gas to Methanex's
production facilities in Chile. Under the arrangement, Methanex
expects to contribute approximately $100 million in capital over
the next three years and will have a 50 percent participation in
the block. It is expected that deliveries of gas from the block
will commence later this year and that the block has the potential
to become a significant new supply source for Methanex's facilities
in Chile. The arrangement is subject to approval by the Government
of Chile.
Bruce Aitken, President & CEO of Methanex commented, "I am
very pleased to announce this agreement with ENAP, which represents
an important step in returning our assets in Chile back to full
operating rates. With this arrangement, our recently announced
agreement with GeoPark, and the new oil and gas activity associated
with the bidding round recently conducted by the Government of
Chile, we expect to receive increasing quantities of Chilean gas in
the next few years."
Methanex's Latin America Senior Vice President, Paul Schiodtz,
added, "We are very pleased to have reached this agreement with
ENAP, which we have enjoyed a strong relationship with as our
primary gas supplier in southern Chile over the last 20 years. The
Dorado Riquelme block represents an excellent opportunity. Our
involvement will add additional capital and personnel dedicated to
accelerate development activity of the block. In addition, the area
has existing pipeline and other infrastructure in place to make it
possible for gas to be flowing to our plants later this year."
Methanex is a Vancouver-based, publicly traded company and is
the world's largest supplier of methanol to major international
markets. 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.
ENAP (Empresa Nacional del Petroleo) is the Chilean state-owned
oil and gas company which was created in 1950 by the state of
Chile. ENAP is involved in the exploration, production and
commercialization of hydrocarbons and their derivatives, which it
does both in Chile and abroad.
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, the success
of natural gas exploration and development activities in southern
Chile and our ability to obtain any additional gas in that region
on commercially acceptable terms, actions of competitors and
suppliers, changes in laws or regulations in foreign jurisdictions,
world-wide economic conditions and other risks described in our
2007 Management's Discussion & Analysis. In addition, no
assurance can be given that the approval from the Government of
Chile referred to in this release will be obtained. 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 Website: www.methanex.com
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