Methanex Corporation announced plans to increase operating capacity at its New Zealand operations by 700,000 tonnes to 2.2 million tonnes by the end of 2013. Methanex has secured a new natural gas supply agreement, which will enable the restart of the methanol plant at its Waitara Valley site by late in the third quarter, adding 500,000 tonnes of production per year.
In addition, Methanex will add capacity at the Motunui site by increasing distillation to add another 200,000 tonnes annually. The current estimated capital cost of these two projects is approximately US$65 million.
John Floren, President and CEO of Methanex commented, "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.
“With a modest capital expenditure we are adding 700,000 tonnes of additional production, which is expected to create significant value for shareholders. This added production also enhances our reliable and quality supply capability to our customers in the fast-growing Asian markets."
Mr. Floren continued, "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."
Methanex is a Vancouver-based, publicly traded company and is the world's largest supplier of methanol to major international markets.
