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Natural Gas October 09, 2019 01:00:05 AM

Methanex Reaches Agreement for Natural Gas Supply to its Chile Operations

Anil
Mathews
OilMonster Author
This longer-term gas supply arrangement provides greater certainty for future gas volumes for our Chile operations and allows for ENAP to make further investments in its gas development activities.
Methanex Reaches Agreement for Natural Gas Supply to its Chile Operations

SEATTLE (Oil Monster):  Methanex Corporation announced today that it has restructured its existing commercial arrangements with Empresa Nacional del Petróleo (“ENAP”) for natural gas supply to underpin approximately 25% of Methanex’s 1.7 million tonnes of annual production capacity in Chile for a six year period from 2020 through 2025. This longer-term gas supply arrangement provides greater certainty for future gas volumes for our Chile operations and allows for ENAP to make further investments in its gas development activities.

We expect that this gas supply, when combined with commitments from other gas suppliers, will allow for up to a maximum of 75% of a two-plant operation or annual production of up to 1.3 million tonnes. We are optimistic that we can secure sufficient gas to underpin a full two-plant operation over the coming years.

In addition, we recently completed the first phase of the major refurbishment of our Chile I plant, and we have successfully restarted the plant. This refurbishment will support the long-term reliability of the plant.

John Floren, President and CEO of Methanex, commented “We are very pleased to secure a longer-term commitment for gas supply with ENAP through 2025. Over the last two years, we have made significant progress toward restoring Chile to a two-plant operation at a very low capital cost. This agreement and the completion of the first phase of the Chile I refurbishment reflect important steps to returning our assets in Chile back to full operating rates.”

Methanex is a Vancouver-based, publicly traded company and is the world's largest producer and supplier of methanol to major international markets. 

Courtesy: www.globalnewswire.com

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