Methanex to restart T&T Titan Methanol plant September 2024Lurk & Learns:
2023-10-13 11:35 ET - News Release
Mr. Rich Sumner reports
METHANEX CORPORATION PROVIDES UPDATE ON TRINIDAD AND TOBAGO OPERATIONS
Methanex Corp. has signed a two-year natural gas agreement with the National Gas Company of Trinidad and Tobago (NGC) for its currently idled, wholly owned Titan methanol plant (875,000-tonne-per-year capacity) to restart operations in September, 2024. Simultaneously, the company intends to idle the Atlas methanol plant (Methanex interest of 63.1 per cent, or 1,085,000-tonne-per-year capacity) in September, 2024, when its legacy 20-year natural gas agreement expires.
Rich Sumner, president and chief executive officer, Methanex, stated: "I am proud of our team's effort to reach an agreement with the NGC that allows us to preserve this strategic location in our global portfolio and maintain a world-class team. The two-year term of the Titan contract offered by the NGC reflects the challenging near-term gas supply-and-demand situation in the country. In the medium to long term, the NGC continues to work with the upstream sector on their plans to develop increased gas supply to the country through various projects, although uncertainty remains.
"We have been working with the NGC and the government of the Republic of Trinidad and Tobago for an extended period to secure economic gas supply for the Atlas and Titan plants. Our decision to restart Titan and cease operations at Atlas was based on economic considerations, including significantly lower capital requirements at Titan compared to Atlas. The new gas price and lower production volume in Trinidad will reduce annual adjusted EBITDA and free cash flow capability, starting in 2025 and compared to 2023, by approximately $80-million and $40-million, respectively, across a range of methanol prices.
"We would like to thank the NGC for their professionalism during the negotiation process and reaffirm our commitment to working with the NGC and the government of the Republic of Trinidad and Tobago to secure economic long-term gas supply."
About Methanex Corp.
Methanex is a Vancouver-based, publicly traded company and the world's largest supplier of methanol to major international markets.
© 2023 Canjex Publishing Ltd. All rights reserved.