Methanex has completed its sale of a 10% equity share in
Egyptian Methanex Methanol Company (EMethanex) to Arab
Petroleum Investments Corp. (ABICORP) for $110 million, the
company said on Friday.
The agreement was first announced in October.
"We are pleased to complete this transaction on
schedule," said John Floren, CEO of Methanex. "We look
forward to continuing to work with APICORP and the Ministry
of Petroleum to enhance our operations in Egypt."
This deal increases APICORP's ownership in the joint venture
to approximately 17%, while Methanex will remain the operator
and majority shareholder of EMethanex with just over 50%
The remaining interest is held by Egyptian Petrochemical
(12%); Egyptian Natural Gas
Holding Company (12%);
and Egyptian National Gas Company (9%).
"Egypt is a key focus in our current investment
diversification program, one of whose many aims is to support
the development of the region's capabilities to manufacture
hydrocarbon derivatives," said Ahmad Bin Hamad Al
Nuaimi, APICORP's chief executive "Furthermore, as part
of our mandate to support Arab energy industry development,
we seek to support project
s like EMethanex that can
deliver tangible economic value and growth. This investment
is a good fit for our strategy of deepening support for
midstream and downstream sectors."
With Methanex remaining the majority shareholder of
EMethanex, there is no change in governance or impact on its
"This is a positive transaction for EMethanex and Egypt,"
said Eng. Sherif Ismail, Egypt's Minister of Petroleum and
Mineral Resources. "APICORP has been a shareholder of
EMethanex since the project
's inception and a partner
in many other successful project
s in Egypt in the oil and
gas sector. Its increased ownership in EMethanex reflects our
fruitful mutual cooperation and reinforces APICORP's
confidence in Egypt's economy."
The plant started commercial operations in 2011 and is
located in Damietta, Egypt on the Mediterranean Sea. It is
among the most energy efficient methanol plants in the world.
The plant, which can produce 1.3 million tpy of methanol,
supplies both the local and global methanol markets and
integrates into Methanex's global methanol supply chain.