Methanex says it plans to restart the second methanol plant
at its Motunui site in New Zealand.
The plant is expected to commence production in mid-2012 and
will add up to 650,000 tpy of incremental capacity.
Methanex has signed a 10-year agreement with New
Zealand-based Todd Energy to supply natural
gas for up to half of the 1.5 million tpy of capacity at
the Motunui site, the company said.
The plant has been idle since 2004 and the estimated future
capital cost to restart is $60 million.
Bruce Aitken, CEO of Methanex, said: "Based on the improved
gas supply position that has developed in New Zealand over
the past several years, we are delighted to announce the
restart of a second plant in New Zealand.
Furthermore, we are very pleased to have entered into
a long-term gas supply agreement with Todd Energy, a leading
oil and gas producer in New Zealand. This agreement underpins
higher production and provides for a long-term gas supply to
our operations in New Zealand."
Mr. Aitken continued: "The quantity of gas supply under this
contract potentially allows us to produce about 7.5 million
tonnes of methanol over the next 10 years, representing
multi-billion dollars of revenues.
The incremental capacity in New Zealand is an
important new supply source for our customers in an environment
where little new capacity is being added to the industry.
And, based on the modest capital expenditure required
to restart the plant, this project is expected to create
significant value for shareholders."