Methanex Reaches Agreement for Natural Gas Supply to Its Chile Operations
October 08 2019 - 5:01PM
Methanex Corporation (TSX:MX) (NASDAQ:MEOH) announced today that it
has restructured its existing commercial arrangements with Empresa
Nacional del Petróleo (“ENAP”) for natural gas supply to underpin
approximately 25% of Methanex’s 1.7 million tonnes of annual
production capacity in Chile for a six year period from 2020
through 2025. This longer-term gas supply arrangement provides
greater certainty for future gas volumes for our Chile operations
and allows for ENAP to make further investments in its gas
development activities.
We expect that this gas supply, when combined
with commitments from other gas suppliers, will allow for up to a
maximum of 75% of a two-plant operation or annual production of up
to 1.3 million tonnes. We are optimistic that we can secure
sufficient gas to underpin a full two-plant operation over the
coming years.
In addition, we recently completed the first
phase of the major refurbishment of our Chile I plant, and we have
successfully restarted the plant. This refurbishment will support
the long-term reliability of the plant.
John Floren, President and CEO of Methanex,
commented “We are very pleased to secure a longer-term commitment
for gas supply with ENAP through 2025. Over the last two years, we
have made significant progress toward restoring Chile to a
two-plant operation at a very low capital cost. This agreement and
the completion of the first phase of the Chile I refurbishment
reflect important steps to returning our assets in Chile back to
full operating rates.”
Methanex is a Vancouver-based, publicly traded
company and is the world's largest producer and 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" and on the NASDAQ Global Market in the United
States under the trading symbol "MEOH”. Methanex can be visited
online at www.methanex.com.
FORWARD-LOOKING INFORMATION
WARNING
This news release contains forward-looking
statements with respect to us and our industry. These statements
relate to future events or our future performance. All statements
other than statements of historical fact are forward-looking
statements. Statements that include the words "will," "expect" or
other comparable terminology and similar statements of a future or
forward-looking nature identify forward-looking statements.
More particularly and without limitation, any statements
regarding the following are forward-looking statements:
- The future operating rate at Methanex’s Chile operation;
and
- Methanex’s ability to increase future production in Chile.
We believe that we have a reasonable basis for making such
forward-looking statements. The forward-looking statements in this
document are based on our experience, our perception of trends,
current conditions and expected future developments as well as
other factors. 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, including,
without limitation, future expectations and assumptions concerning
the following:
- our ability to procure natural gas feedstock for our Chile
operation on commercially acceptable terms; and
- operating costs at our Chile plants including natural gas
feedstock and logistics costs, capital costs, tax rates, cash
flows, foreign exchange rates and interest rates.
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 primarily include those
attendant with producing and marketing methanol and successfully
carrying out major capital expenditure projects in various
jurisdictions, including, without limitation:
- our ability to obtain natural gas feedstock on commercially
acceptable terms to underpin current operations;
- conditions within the natural gas delivery systems that may
prevent delivery of our natural gas supply requirements;
- competing demand for natural gas, especially with respect to
domestic needs for gas and electricity in Chile;
- world-wide economic conditions; and
- other risks described in our 2018 Annual Management’s
Discussion and Analysis and our Second Quarter 2019 Management’s
Discussion and Analysis.
Having in mind these and other factors, investors and other
readers are cautioned not to place undue reliance on
forward-looking statements. They are not a substitute for the
exercise of one’s own due diligence and judgment. The outcomes
implied by forward-looking statements may not occur and we do not
undertake to update forward-looking statements except as required
by applicable securities laws.
For further information, contact:
Kim CampbellManager, Investor RelationsMethanex Corporation604
661 2600 or Toll Free: 1 800 661 8851www.methanex.com
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