24 January 2013 14:56 [Source: ICIS news]
TORONTO (ICIS)--Methanex has secured long-term natural gas supplies for its methanol project in ?xml:namespace>
Under a 10-year deal, Chesapeake Energy agreed to supply all of the natural gas required for Methanex's 1m tonne/year methanol plant in Geismar, Methanex said.
The Geismar plant is expected to start up by the end of 2014, when gas deliveries will begin.
“This contract will enhance our ability to reliably supply quality product to our
The agreement is structured so that the natural gas price is linked to the methanol price, and both Methanex and
“This gas pricing formula, in addition to the capital cost advantage of relocating a methanol plant as compared to a new-build facility, enables the project to be profitable across a broad range of methanol prices," he said.
Floren added that Methanex expects to decide during the first half of 2013 whether to relocate a second methanol plant from
Additional reporting by Lane Kelley and Al Greenwood
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