25 July 2012 23:01 [Source: ICIS news]
HOUSTON (ICIS)--Methanex has made the final decision to move one of its idled methanol plants in Chile to a town in southern Louisiana at a cost of $550m (€457m), the company said on Wednesday.
The company said the idled 1m tonne/year unit would be operating in the town of Geismar, south of Baton Rouge, by the end of 2014.
Methanex first announced that it was considering the move in January but would not make a final decision until July. Chief executive Bruce Aitken said then that the move would cost around $400m.
Methanex is operating only one of its four plants in Chile, and has had considerable problems maintaining a supply of natural gas for operations.
The move follows a new pattern in North American methanol. The US and Canada have become a magnet for methanol projects in the past two years, mostly because of the shale gas revolution and its promise of cheap natural gas feedstock.
Aitken said in Methanex’s announcement that the company has begun dismantling the plant in Chile and expected to receive all key permits by the end of this year.
($1 = €0.83)
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