Methanex Inks Long-Term Natural Gas Supply Deal With ENAP
Zacks Investment Research | Oct 10, 2019 09:17PM ET
Methanex Corporation (NASDAQ:MEOH) recently announced that its existing commercial arrangements with Empresa Nacional del Petroleo (ENAP) to supply natural gas has been restructured. It will now support around 25% of Methanex’s 1.7 million tons of annual production in Chile from 2020 through 2025.
The long-term natural gas supply arrangement will ensure future gas volumes for the company’s operations in Chile. Moreover, it will enable ENAP to make additional investments in gas development activities.
Methanex believes that this gas supply deal along with commitments from other gas suppliers will enable annual production of up to 1.3 million tons or a maximum of 75% capacity of a two-plant operation. The company is optimistic of securing adequate gas to support a full two-plant operation over the coming years.
Notably, Methanex finished the first phase of the major refurbishment at its Chile I plant. Moreover, it has successfully restarted the plant. The refurbishment is expected to support the long-term reliability of the facility.
Methanex has made substantial progress to restore the Chile facility to a two-plant operation at lower cost of capital. This deal and completion of the first phase of the Chile I refurbishment are major steps for Methanex to return its assets in Chile to full operating rates.
Shares of Methanex have plunged 54% in the past year compared with the Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.