Methanex has reached a final investment decision to proceed with the relocation of a 1 million tpy methanol plant from its Chile site to
Geismar, Louisiana, the company said on Thursday.
The Louisiana plant is targeted to be operational by the end
The expected cost of the project, including all owners' and
pre-start up costs, is approximately $550 million.
We have completed the engineering study which
reaffirms that the project offers substantial capital
savings compared to a greenfield methanol plant, said Bruce
Aitken, CEO of Methanex.
In addition, it can be executed in significantly less
time, which allows us to capitalize on the current low natural
gas price environment in North America."
Mr. Aitken said Geismar is an good location for a
It possesses world-class infrastructure, skilled
workers and is a positive, low-risk environment in which to do
business, he said. It is also a large
methanol-consuming region which offers the potential for
substantial logistics cost savings.
We have commenced dismantling of the plant and expect
to receive all key permits by the end of 2012."
Methanex noted that the timing was excellent for
The demand outlook for methanol is strong and there is
little new production capacity being added to the industry over
the next several years, Mr. Aitken said.