Methanex, the world’s largest producer and supplier of methanol to major international markets, has announced that it has successfully produced first methanol from its new 1.0 million tonne plant in Geismar, Louisiana, in the US.
The Geismar plant was relocated from Methanex’s production site in Punta Arenas, Chile, and is expected to operate at full production rates over the coming weeks.
“This accomplishment marks another key milestone in our 2013 commitment to grow our operating capacity by approximately three million tonnes over three years, and it will support our continued growth and strategic focus on global methanol leadership,” commented John Floren, president and CEO of Methanex.
“We continue to make excellent progress on the construction of our one million tonne Geismar 2 plant, and remain on target for methanol production from that facility in late Q1 2016,” he informed.
The Geismar 1 plant was completed over roughly a two and a half year period, and the total cost for completion of the two Geismar plants is estimated at $1.4 billion. This represents a substantial schedule and cost savings relative to a new-build plant.
“With our cash on hand, undrawn credit facility, robust balance sheet, and strong future cash flow generation, we are well positioned to complete the construction of the Geismar 2 facility and meet our other financial commitments,” added Floren. (RKS)
