Methanex to select second Chilean plant relocation to United States in Q2 2013
Canadian methanol manufacturer Methanex will certainly choose whether to relocate a 2nd methanol plant to Louisiana from Chile, where it has four plants, a firm exec stated Wednesday.
"We will certainly decide for the second plant in the 2nd quarter" of 2013, stated Tim Williams, Methanex's vice president of upstream & feedstock purchase.
In January, Methanex announced it would certainly move a 1 million mt/year plant from Chile to Geismar, Louisiana.
Building and construction of the initial plant in Louisiana, which is set up ahead online by the end of 2014, will have an estimated price of $550 million. Taking apart of the facility in Chile has actually currently begun, Williams stated.
dtpmp said lower natural gas rates in the United States were the driving element behind the decision to move the plant.
In Chile, Methanex has four methanol plants at Cabo Negro, near the city of Punta Arenas, with a combined ability of 3.8 million mt/year.
The business, which gets its gas products from Argentina, has dealt with supply disruptions because 2007 as chilly winters in Argentina pushed the government to draw away supplies to residential power generation.
Therefore, Williams claimed, only one plant is running in Chile as well as at much less than 50% capability.
The moving costs for the second plant would be less than $550 million, Williams said.
"Mobilization fees for things like heavy cranes as well as such would be less costly because we would time it so there would certainly be no demobilization period," he added.
In the meantime, Williams is hectic securing supplies for the Geismar methanol plant. Some 100,000 Mcf/d of gas feedstock would certainly be necessary for operations, he stated, with an overall contract cost of some $2 billion.
Williams has actually had arrangements with around 20 United States gas manufacturers to secure those supplies, however is shopping for a non-NYMEX based price.
"What we offer all over the world is a base rate for gas and also income sharing based on methanol prices," Williams claimed.
"That gets rid of the threat from the low gas cost for producers, but is a high enough price for them to pierce in completely dry gas plays," he included.
"We will certainly decide for the second plant in the 2nd quarter" of 2013, stated Tim Williams, Methanex's vice president of upstream & feedstock purchase.
In January, Methanex announced it would certainly move a 1 million mt/year plant from Chile to Geismar, Louisiana.
Building and construction of the initial plant in Louisiana, which is set up ahead online by the end of 2014, will have an estimated price of $550 million. Taking apart of the facility in Chile has actually currently begun, Williams stated.
dtpmp said lower natural gas rates in the United States were the driving element behind the decision to move the plant.
In Chile, Methanex has four methanol plants at Cabo Negro, near the city of Punta Arenas, with a combined ability of 3.8 million mt/year.
The business, which gets its gas products from Argentina, has dealt with supply disruptions because 2007 as chilly winters in Argentina pushed the government to draw away supplies to residential power generation.
Therefore, Williams claimed, only one plant is running in Chile as well as at much less than 50% capability.
The moving costs for the second plant would be less than $550 million, Williams said.
"Mobilization fees for things like heavy cranes as well as such would be less costly because we would time it so there would certainly be no demobilization period," he added.
In the meantime, Williams is hectic securing supplies for the Geismar methanol plant. Some 100,000 Mcf/d of gas feedstock would certainly be necessary for operations, he stated, with an overall contract cost of some $2 billion.
Williams has actually had arrangements with around 20 United States gas manufacturers to secure those supplies, however is shopping for a non-NYMEX based price.
"What we offer all over the world is a base rate for gas and also income sharing based on methanol prices," Williams claimed.
"That gets rid of the threat from the low gas cost for producers, but is a high enough price for them to pierce in completely dry gas plays," he included.
