Methanex to restart second methanol plant in New Zealand

Bruce Aitken, President and CEO, Methanex.

VANCOUVER, CANADA: Methanex Corporation announced plans to restart the second methanol plant at its Motunui site in New Zealand. The plant is expected to commence production in mid 2012 and will add up to 650,000 tonne of incremental capacity per year. Methanex has signed a 10 year agreement with New Zealand based Todd Energy to supply natural gas for up to half of the 1.5 million tonne of annual capacity at the Motunui site. The plant has been idle since 2004 and the estimated future capital cost to restart is $60 million.

“The quantity of gas supply under this contract potentially allows us to produce about 7.5 million tonne of methanol over the next 10 years, representing multi-billion dollars of revenue. The incremental capacity in New Zealand is an important new supply source for our customers in an environment where little new capacity is being added to the industry. And, based on the modest capital expenditure required to restart the plant, this project is expected to create significant value for shareholders,” said Bruce Aitken, President and CEO, Methanex.