OPERATIONS

Methanex to continue closures of high cost plants

Methanex Corporation says it will continue shutting high-cost methanol production facilities and concentrate on its giant low-cost methanol hubs.

Methanex to continue closures of high cost plants

New Zealand is not mentioned in today’s report on the corporation’s first quarter earnings for 2004. However, it is known Methanex wants to keep the Taranaki plants operating, at least at partial capacity, for as long as it can as transport costs to the buoyant Asian markets are lower from New Zealand than from Chile or Trinidad

Methanex today reported net income of US$46.8 million and generated EBITDA of US$93.4 million for the first quarter, compared with US$27.72 million and EBITDA of US$81.6 million for the last 2003 quarter.

President Bruce Aitken said world methanol industry fundamentals continued to be very favourable, with an average realised price for the first quarter 2004 of US$220 per tonne, compared with US$204 per tonne for the previous quarter and US$223 per tonne for the first quarter 2003.

“We are optimistic that current favourable methanol market conditions will continue as we expect that the impact of planned new capacity additions during 2004 is likely to be largely offset by further shutdowns of high cost North American production and increased demand.”

He said Methanex expected the 1.7 million tonne Atlas, Trinidad, plant - in which it had a 63.1% interest - to start production during this current quarter. It also expected its 840,000 tonne Chilean expansion to be completed by early 2005.

TOPICS:

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

editions

ENB CCS Report 2024

ENB’s CCS Report 2024 finds that CCS could be the much-needed magic bullet for Australia’s decarbonisation drive

editions

ENB Cost Report 2023

ENB’s latest Cost Report findings provide optimism as investments in oil and gas, as well as new energy rise.

editions

ENB Future of Energy Report 2023

ENB’s inaugural Future of Energy Report details the industry outlook on the medium-to-long-term future for the sector in the Asia Pacific region.

editions

ENB Cost Report 2021

This industry-wide report aims to understand current cost levels across the energy industry