Methanol plant construction restarts in Geismar
Methanex Corporation announced July 16 the company's restart of construction in Geismar.
Company leaders previously decided to defer the third methanol plant due to the uncertainty at the beginning of the coronavirus pandemic.
In a company news release, Methanex President and CEO John Floren said the timing was right to kick off the project due to the positive outlook for the methanol industry, and the company's strong financial position to fund the project. Floren added that it is well-positioned to be completed on-time and on budget.
"Geismar 3 will strengthen our asset portfolio as it will be one of our lowest cost plants, with access to abundant and low-cost natural gas and have one of the lowest CO2 emissions intensity profiles in the industry," Floren stated.
The Geismar construction is the company's only major growth capital project expected over the next few years.
As stated in the release, current methanol industry fundamentals are positive as growing methanol demand, low global inventory levels, ongoing industry supply challenges and a rising energy price environment have supported higher methanol prices.
Methanex is a Vancouver-based, publicly traded company and is the world's largest producer and supplier of methanol to major international markets.