Methanex Prepares to Restart Alberta Methanol Plant Despite Market Woes

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Methanex Corporation (NASDAQ NM: MEOH) (Vancouver, Canada) is planning to restart its currently idled methanol plant located in Medicine Hat, Alberta. The 470,000 ton per year plant was mothballed almost two years ago as North American producers began to experience a decline in demand, as a result of the pressure to eliminate MTBE (Methyl tert-butyl ether) as an oxygenate in gasoline.

Producers saw some short-term relief when California delayed its ban on MTBE shortly after this plant was idled, but recent strength in lobbyist's efforts calling for the elimination of MTBE have strained an already weakened industry sector. Canada's only other producer of methanol is Celanese Canada Incorporated with an estimated 800,000 ton per year plant in Edmonton, Alberta.

The re-startup of the Medicine Hat plant will take place in increments starting with the first production in July or August and operating with a skeleton crew. There are no plans to invest in any new capital equipment or make any process retrofits.

In a recent industry alert titled Methanol Will Flow from Down Under, announcing GTL Resource's plans for a $480 million methanol plant in Australia, Industrialinfo.com listed six international methanol projects reported during 2002, of which Methanex is the developer/owner of two projects.