19 September 2012 23:30 [Source: ICIS news]
The contract will be for 100m cubic feet/day (2.8m cubic metres/day), said Tim Williams, Methanex's vice president, upstream and feedstock acquisition.
Instead of being based on NYMEX gas prices, the contract will set a base price for natural gas, plus a revenue-sharing provision based on the price of methanol, Williams said.
Such terms would protect the natural-gas supplier from low fuel prices and Methanex from high prices, he said.
The plant is expected to be operational in the second half of 2014. Capacity details were not disclosed.
The construction value of the Methanex project is estimated at $550m (€424m).
Methanex plans to disassemble a 1m tonne/year idled methanol plant at its Cabo Negro complex in Chile and to move the facility to Louisiana to capitalise on low US natural gas prices.
Methanex has four methanol plants at Cabo Negro. The company said that it was studying whether to relocate a second of those Chilean methanol plants to North America.
Only one of the four plants in Chile is operational because of natural gas supply problems.
($1 = €0.77)
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