18 January 2012 08:13 [Source: ICIS news]
(adds details in paragaphs 2-3)
SINGAPORE (ICIS)--Methanex is planning to relocate one of its idled methanol plants at its Cabo Negro complex in ?xml:namespace>
The firm is likely to move a 1m tonne/year unit from the Cabo Negro complex to the new site at Geismar in
Methanex operates three 1m tonne/year units and another 800,000 tonne/year plant at the Cabo Negro site, according to the source.
Site-specific engineering has begun and the plant is expected to be operational in the second half of 2014, the company said in a statement.
“The outlook for low North American natural gas prices makes
“We have a number of parallel work paths ongoing and expect to make a final investment decision on this project in the third quarter of this year,” Aitken added.
The relocation project will allow the firm to add capacity at a lower capital cost and in about half the time taken to start up a
“We continue to pursue more natural gas from other suppliers in
“However, the board decided it was faster to relocate one of the plants to the
“The timing of this project is excellent: there is strong demand growth for methanol globally and there is little new production capacity being added to the industry over the next several years,” Aitken said.
The plant’s output will mainly be allocated to the company’s distribution chain. The company source added that the volume may be sold to the Methanex’s
Methanex has four methanol plants with a combined capacity of 3.8m tonnes/year at the Cabo Negro complex in
The financial details of the project were not disclosed in the statement.
With initial reporting by Nurluqman Suratman
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