Methanex Corporation Provides Update on Trinidad and Tobago Operations
October 13 2023 - 8:15AM
Methanex Corporation (TSX:MX) (NASDAQ:MEOH) announced today that it
has signed a two-year natural gas agreement with the National Gas
Company of Trinidad and Tobago (NGC) for its currently idled,
wholly owned, Titan methanol plant (“Titan”) (875,000 tonnes per
year capacity) to restart operations in September 2024.
Simultaneously, the Company announced its intention to idle the
Atlas methanol plant (“Atlas”) (Methanex interest 63.1% or
1,085,000 tonnes per year capacity) in September 2024, when its
legacy 20-year natural gas agreement expires.
Rich Sumner, President and CEO, Methanex
Corporation, stated “I am proud of our team’s effort to reach an
agreement with the NGC that allows us to preserve this strategic
location in our global portfolio and maintain a world-class team.
The two-year term of the Titan contract offered by the NGC reflects
the challenging near-term gas supply and demand situation in the
country. In the medium to long term, the NGC continues to work with
the upstream sector on their plans to develop increased gas supply
to the country through various projects, although uncertainty
remains.
We have been working with the NGC and the
Government of the Republic of Trinidad and Tobago for an extended
period to secure economic gas supply for the Atlas and Titan
plants. Our decision to restart Titan and cease operations at Atlas
was based on economic considerations, including significantly lower
capital requirements at Titan compared to Atlas. The new gas price
and lower production volume in Trinidad will reduce annual adjusted
EBITDA and free cash flow capability, starting in 2025 and compared
to 2023, by approximately $80 million and $40 million,
respectively, across a range of methanol prices.
We would like to thank the NGC for their
professionalism during the negotiation process and reaffirm our
commitment to working with the NGC and the Government of the
Republic of Trinidad and Tobago to secure economic long-term gas
supply.”
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” and on the
NASDAQ Global Market in the United States under the trading symbol
“MEOH”. Methanex can be visited online at www.methanex.com.
Inquiries:Sarah HerriottDirector, Investor
RelationsMethanex Corporation604-661-2600 or Toll Free:
1-800-661-8851www.methanex.com
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