Despite a Methanex Corp. quarterly report released Thursday in which company officials appeared to confirm reports that it plans to relocate a second methanol plant from Chile to Geismar, a company spokesman says Methanex has not made a final decision on the matter. “We are evaluating the potential relocation of a second plant from Chile to Louisiana and expect to make a decision on this second relocation in the first half of 2013,” says Baljit Lalli, communications manager. A line in the company’s quarterly report refers to “the second facility that management also intends to relocate to Geismar.” Methanex announced in July that it was relocating one plant from Chile to a 225-acre site in Geismar. That plant is expected to be operational sometime in the second half of 2014. “A key area of focus for me as the new CEO will be the successful execution of our value-creating growth projects in Louisiana and New Zealand,” says Methanex President and CEO John Floren in the quarterly report. “While we are disappointed with our progress on securing natural gas in Chile, these new initiatives in Louisiana and New Zealand have the potential to add up to three million tonnes of capacity over the next few years, which will enhance supply to our customers and significantly improve cash generation for shareholders.” A December Fitch Ratings report on the Vancouver-based company, which is the world’s largest supplier of methanol, previously mentioned the potential for a second plant. “Methanex expects to spend approximately $500 million in relocating one plant and roughly $1 billion relocating both,” reads the report. Floren notes in the quarterly report: “With over $700 million of cash on hand, an undrawn credit facility, a robust balance sheet, and strong cash flow generation, we are well positioned to invest in the Louisiana project, New Zealand expansion plans and other strategic growth opportunities.”
Editor’s note: This story has been changed and updated since its original publication to include comments from a Methanex spokesman.
