Methanex Provides Update on Geismar 3 Methanol Plant in Geismar, Louisiana
February 20 2024 - 7:46AM
Methanex Corporation (TSX:MX) (NASDAQ:MEOH) announced today that
commercial production of its new 1.8 million tonne methanol plant,
Geismar 3 (G3), in Geismar, Louisiana has been delayed due to
complications that occurred in the autothermal reformer (ATR)
during the late stages of the initial start-up process.
This issue required the ATR to be cooled and brought to a safe
state where teams could conduct detailed inspections of the vessel.
Upon completing initial inspections, it has been
determined that there is significant damage to a large number of
supporting refractory bricks in the vessel which will require
replacement. The specialty formed refractory bricks require time to
procure and, as a result, management believes commercial production
could be delayed up to the end of the third quarter of 2024. The
investigation and planning to rectify the issue is ongoing and
management is exploring all avenues to accelerate the repair time.
Based on the preliminary findings of its root cause analysis,
management believes that this issue relates to complications in the
initial start-up process and is not a plant design or construction
issue. Management believes that the total capital cost will not
significantly exceed the upper end of the capital cost guidance of
$1.30 billion.
Rich Sumner, President and CEO of Methanex
commented, “We are disappointed by this delay, and we are actively
working with our critical suppliers to expedite delivery to
facilitate the start-up of G3. I want to thank our G3 team who are
working tirelessly to ensure a safe startup of the plant. Safety
remains our top priority followed by our commitment to deliver a
quality plant.”
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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