Geopark gas to boost Methanex Chile by 3%

19 June 2008 17:11  [Source: ICIS news]

HOUSTON (ICIS news)--Methanex Corp expects to ramp up its Chilean methanol plant’s output 3% by the end of the year with increased gas output by Geopark, Methanex investor relations director Jason Chesko said on Thursday.

The 3.8m tonnes/year methanol plant in southern Chile currently receives 4-5% of its gas from Bermuda-based gas producer Geopark Holdings Limited. Chesko said the company expects to receive 7-8% by year’s end.

Geopark said on Monday that it had successfully drilled and completed two gas wells in southern Chile. The producer said it plans to connect the two fields to the regional gas pipelines, which will then source natural gas to the Methanex Chilean plant near Punta Arenas.

With the announcement by Geopark and the recent agreement with Chilean state-owned gas producer ENAP, Chesko indicated that Methanex’s main priorities for its Chilean plant will be ramping back up to full capacity by sourcing more gas.

“Our main priority is to accelerate gas development in southern Chile,” Chesko said, estimating a time frame of 3-4 years to reach full capacity.

Chesko added: “We expect a slow and steady ramp up over next few years.”

The methanol plant in Chile is currently running at 30% capacity due to the cut-off of natural gas from Argentina.

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By: Steven McGinn
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