Methanex Secures More Natural Gas for Waitara Plant

Vancouver-based methanol producer Methanex Corporation has announced it has secured approximately six petajoules of additional natural gas feedstock for its Waitara Valley methanol plant in Taranaki.

This gas, combined with existing gas entitlements, will enable the plant to produce approximately 230,000 tonnes of methanol in 2006 at the 530,000 tonne capacity per year plant.

The Methanex plant was idled during the fourth quarter of 2005 and was restarted in early January 2006. With the additional gas, it is expected to operate until the end of the second quarter of 2006.

Methanex said that the plant remains a flexible production asset and future operations beyond mid-2006 will be dependent on securing additional economically priced natural gas.

Bruce Aitken, president and CEO of Methanex said, "We are pleased that we have been able to secure this additional gas for our New Zealand facility.”

This extra production will supply customers in the Asia Pacific region and is expected to make a positive contribution to Methanex's first half earnings and cash flows.

Mr Aitken said methanol supply continues to be very tight, with low inventories and healthy demand.

Harvey Weake, managing director of Methanex NZ Ltd, recently told the New Zealand Petroleum Conference that New Zealand must continue to pursue gas exploration with urgency.

Mr Weake said that one of the reasons exploration needed to be promoted in New Zealand was because the relatively low cost, reliable energy supply was a fundamental competitive advantage for the country.

He said methanol was the ideal ‘hydrogen’ carrier for fuel cells and an ideal ingredient for locally produced biodiesel.