Methanex Signs Natural Gas Supply Agreements for Its Chile Operations From Argentine Suppliers
August 13 2018 - 7:15PM
Methanex Corporation (the “Company”) (TSX:MX) (NASDAQ:MEOH)
announced today that it has signed agreements with Pan American Sur
SA, Compañia General de Combustibles SA, Total Austral SA and
Wintershall Energia SA for additional gas supply on an
interruptible basis and subject to gas availability in Argentina
for its Chile operations through to June 1, 2020. These agreements
are subject to the gas suppliers obtaining export permits from the
Argentine Government and, based on the policy direction signaled by
the Argentine Government, we are optimistic that the export permits
will be granted. We expect that these new agreements, combined with
existing contracts from other gas producers, will allow for a
two-plant operation in Chile during the southern hemisphere summer
months and up to a maximum of 75% of a two-plant operation
annually.
John Floren, President and CEO of Methanex,
commented, “We are very pleased to sign these agreements for
additional gas supply for our Chile facilities. The ability to
import natural gas from Argentina to Chile is a significant
opportunity to support our operations in Chile. These agreements
represent an important milestone to securing sufficient gas to
underpin an ongoing two-plant operation by the end of the
decade.”
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 Select Market in the
United States under the trading symbol "MEOH".
FORWARD-LOOKING INFORMATION
WARNING
This press release contains certain
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” and
“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:
- expected levels and timing of
natural gas supply to our Chile facility, and
- expected operating costs, including
natural gas feedstock costs and logistics costs.
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,
- operating rates of the Chile
facility,
- the Chile facility’s operating
costs including natural gas feedstock costs, logistics costs, tax
rates, 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 for
and price of methanol and its derivatives, including demand for
methanol for energy uses,
- world-wide economic conditions,
and
- other risks described in our 2017
Annual Management's Discussion and Analysis and our Second Quarter
2018 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 anticipated in 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:
Inquiries:Kim CampbellManager,
Investor RelationsMethanex Corporation604-661-2600 or Toll Free: 1
800 661 8851 www.methanex.com
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