By the OGJ Online Staff
HOUSTON, Aug. 28 -- Methanex Corp., Vancouver, and BP PLC have decided to proceed with construction of the $400 million, 1.7 million tonne/year Atlas methanol facility in Trinidad. At the same time, Methanex postponed reopening of its Medicine Hat, Alta., methanol facility indefinitely.
Methanex increased its interest in the Atlas proposed plant recently, bringing its holding to 63.1% (OGJ Online, July 5, 2001). BP will hold the remaining interest.
Atlas will be built next to the existing Titan plant, in which Methanex holds 10%.
Market delivery is expected by early 2004.
Methanex said its equity contribution to the project will be about $100 million. The Vancouver company will market the Atlas plant's production, half of which is already committed to Methanex, BP, and Air Products & Chemicals Inc.
Pierre Choquette, president and CEO of Methanex, said, "Atlas, with its very low capital and operating costs, will provide us with another outstanding production hub. Atlas is strategically located with abundant natural gas reserves and duty free access to both the United States and Europe."
Methanex announced plans in May to shut down its Medicine Hat methanol plant for 3 months starting July 1, to "balance production levels with global customer requirements."
Now it says the plant's cost structure is noncompetitive.
"Methanex expects to realize annual plant fixed and capital maintenance cost savings of approximately $10 million (US) as the plant will be mothballed and the plant's 95 employees relocated to other Methanex facilities or terminated," said the company.