Methanex lays off Chilean workers, cites natgas

20 March 2008 22:50  [Source: ICIS news]

HOUSTON (ICIS news)--Global methanol major Methanex has laid off 15% of the workers at its Chilean operations after natural gas supplier Argentina raised its export duty, the company said on Thursday.

Methanex laid off about 40 people from its Chilean operations this week, said Jason Chesko, director of investor relations.

The Argentine government increased the natural gas export duty from 45% to 100% of the highest contracted import price of natural gas into the country, Methanex said in a statement last week.

The hike would translate into an export duty of about $7/m Btu, or about $250/tonne (€160/tonne) of methanol, Chesko said.

Methanex has been operating its plants at 30% of capacity since June as a result of curtailments of natural gas exports from Argentina, Chesko said. Argentina previously provided 60% of Methanex’s natural gas needs, he said.

Chesko said Chile was working to develop more natural gas resources, but Methanex was not likely to resume production at 100% capacity until at least 2011.

($1 = €0.64)

By: Brian Ford
+1 713 525 2653

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