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Methanex approves Chile-to-US plant relocation

07.26.2012  | 

The Louisiana methanol plant is targeted to be operational by the end of 2014. The expected cost of the project, including all owners' and pre-start up costs, is about $550 million, according to the company.

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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 of 2014.

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 methanol project.

“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 move.

“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.



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Carl Causey
07.30.2012

I would also be interested in who is the EPC for this relocation.

Ronald Maenhout
07.28.2012

who has the EPC contract for this relocation project?

W. Schlusser
07.28.2012

What about the reaction at the proposed Chilean site and the loocal effects of this move?
Chile needs to work more than the US
Effect on company's local employees, community, infrastructure?
There are always 2 sides to a coin and story.

JD Singh
07.27.2012

If the methanex authorities can share information about the type of reactor it's operating main parameters temperature and pressure. Technology adopted for the plant. Special features of the plant. Level of energy per MT as well as cost of production in US$. Is it a single stream or two stream/multiple stream plant? I will be thankful to them to get the information.

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