Methanex now deals Kitimat to Acetex

21 June 1999 15:38  [Source: ICIS news]

HOUSTON (CNI)--Canada's Methanex has been unable to conclude its previously announced agreement for transfer of its methanol plant in Kitimat, British Columbia to Pacific Ammonia (PAI) but has structured a new deal with Acetex instead.

In a statement Monday, Vancouver, British Columbia-based Methanex said the terms of the Acetex deal remain "substantially the same" as those previously announced with PAI.

"Acetex had earlier expressed an interest in the Kitimat plant and we have been able to quickly reach an understanding with them including terms substantially similar to the PAI proposal," said Pierre Choquette, president and chief executive officer at Methanex.

He said: "Included in the new arrangement, Acetex will take over ownership of the site, including the methanol production facility, while Methanex will continue to market the methanol."

The agreement allows Methanex to derive revenue from a marketing fee and a sharing of future methanol plant income.

Methanex said the transfer likely will mean a one-time charge to earnings.

Acetex is also based in Vancouver.

By: Gary Taylor
+1 713 525 2653

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