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Methanex details gas supply agreement for Chile operations

Increase font size  Decrease font size Date:2019-10-12   Views:372
Methanex has reached a long-term gas supply agreement with Empresa Nacional de Petroleo for its Chile operations, the world's largest methanol producer said in a statement Tuesday afternoon.

Per the agreement, the Chilean energy company is to supply enough natural gas from 2020 to 2025 to support roughly 25% of the Canadian producer's capacity in the Latin American country.
The precise volume of natural gas to be supplied was not disclosed.

Methanex's Chile operations have a combined capacity of 1.7 million mt/year, with the company's Chile I and Chile IV facilities located in the south of the country at Punta Arenas.

While the Canadian producer aims to have a full two-plant operation in the future, the company's arrangement with ENAP, in combination with other agreements, is expected to support up to 75% of a two-plant operation.

In addition to detailing the long-term gas supply with ENAP, Methanex stated that the company's Chile I plant has recently restarted following the first phase of refurbishment. Methanex has previously stated the second half of refurbishment will be carried out in the winter of 2020.

"This agreement and the completion of the first phase of the Chile I refurbishment reflect important steps to returning our assets in Chile back to full operating rates," said CEO John Floren in the release.
 
 
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