Methanex Delays Start of Commercial Operations at Louisiana Methanol Plant

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Researched by Industrial Info Resources (Sugar Land, Texas)--Citing problems with the facility's autothermal reformer (ATR), Methanex Corporation (NASDAQ:MEOH) (Vancouver, British Columbia) said Tuesday it has delayed commercial operations at its new 1.8 million-metric-ton-per-year methanol plant in Geismar, Louisiana, until the end of the third quarter.

Complications occurred in the ATR during the late stages of the initial start-up process, Methanex said in a press release, requiring the ATR to be cooled and brought to a "safe state" where the vessel could be inspected. The inspections found "significant damage" to a large number of supporting refractory bricks in the vessel, which will require replacement.

"The specialty-formed refractory bricks require time to procure and, as a result, management believes commercial production could be delayed up to the end of the third quarter of 2024," the company said. The plant previously was expected to begin commercial production in April, according to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database.

GMI subscribers can click here for the project report and click here for the plant profile. Industrial Info has tracked the project since June, 2018. The duration of the project already had been extended by at least 18 months due to the economic slowdown and COVID-19-related issues.

The company said that the problem does not stem from the plant design or construction issues. It added that company management believes the capital cost will not "significantly exceed" the upper end of the capital cost guidance of $1.3 billion.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).