Methanex plans to increase operating capacity in New Zealand
by 700,000 tpy to 2.2 million tpy by the end of 2013, the
company confirmed on Wednesday.
To accomplish this, Methanex secured a new natural
gas supply agreement, thereby enabling the restart of the
methanol plant at its Waitara Valley site by late in the third
quarter. That will add 500,000 tpy of production.
In addition, Methanex will add capacity at the Motunui site by
increasing distillation to add another 200,000
tpy, the company said. The estimated capital cost of the two projects is approximately $65
"We are excited to announce another increase to our
production in New Zealand, as a result of the improved natural
gas supply position that continues to develop in the
country," said John Floren, CEO of Methanex.
"With a modest capital expenditure we are adding 700,000 tonnes
of additional production, which is expected to create
significant value for shareholders," he continued. "This
added production also enhances our reliable and quality supply
capability to our customers in the fast-growing Asian
"With the new natural gas supply agreement, combined with
the other secured natural
gas supply agreements, we now have arrangements in place to
underpin production at our three-plant operation in New Zealand
for years to come."