Methanex Provides Update on Trinidad Operations
January 07 2021 - 8:15AM
Methanex Corporation (TSX:MX) (NASDAQ:MEOH) announced today that it
expects its Titan methanol facility (“Titan”) in Trinidad (875,000
annual operating capacity) will remain idled indefinitely. As a
result, the Company has made the decision to restructure its
Trinidad operations to support a one-plant operation and reduce its
Trinidad workforce by approximately 60 positions filled by
employees and long-term contractors.
To date, we have not been successful reaching an
agreement for an economic longer-term natural gas agreement and
given that the economic recovery path remains uncertain we believe
it is prudent to reduce costs while continuing our efforts to
secure longer-term gas supply. The Atlas methanol facility
(Methanex interest 63.1%) is not affected by the change and
continues to operate as it is underpinned by a separate natural gas
supply agreement that expires in 2024.
John Floren, President and CEO, Methanex
Corporation, commented, “We remain committed to doing business in
Trinidad and Tobago and we believe that we will be able to secure
an economic longer-term natural gas agreement for Titan in the
coming years. Our operations in Trinidad are well located to supply
global methanol markets and are an important component of our
global production network. We are taking the necessary steps to
maintain Titan to ensure a safe and efficient restart of the plant
when a longer-term gas agreement is reached.”
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 "believes," "expects," "will," 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:
- expected new methanol supply or
restart of idled capacity and timing for start-up of the same,
- expected shutdowns (either
temporary or permanent) or restarts of existing methanol supply
(including our own facilities), including, without limitation, the
timing and length of planned maintenance outages,
- expected methanol and energy
prices,
- expected levels, timing and
availability of economically priced natural gas supply to each of
our plants,
- anticipated operating rates of our
plants,
- expected operating costs, including
natural gas feedstock costs and logistics costs, and
- expected actions of governments,
governmental agencies, gas suppliers, courts, tribunals or other
third parties.
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:
- the supply of, demand for and price
of methanol, methanol derivatives, natural gas, coal, oil and oil
derivatives,
- our ability to procure natural gas
feedstock on commercially acceptable terms,
- operating costs, including natural
gas feedstock and logistics costs, capital costs, tax rates, cash
flows, foreign exchange rates and interest rates, and
- global and regional economic
activity (including industrial production levels).
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:
- conditions in the methanol and
other industries including fluctuations in the supply, demand and
price for methanol and its derivatives, including demand for
methanol for energy uses,
- the price of natural gas, coal, oil
and oil derivatives,
- our ability to obtain natural gas
feedstock on commercially acceptable terms to underpin current
operations and future production growth opportunities,
- the ability to carry out corporate
initiatives and strategies,
- actions of competitors, suppliers
and financial institutions,
- actions of governments and
governmental authorities, including, without limitation,
implementation of policies or other measures that could impact the
supply of or demand for methanol or its derivatives,
- world-wide economic
conditions,
- the impacts of the COVID-19
pandemic, and
- other risks described in our 2019
Annual Management’s Discussion and Analysis and our Third Quarter
2020 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 CampbellDirector, Investor RelationsMethanex Corporation604
661 2600 or Toll Free: 1 800 661 8851www.methanex.com
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