Methanex and BP to proceed with the Construction of the Methanol Facility
Methanex Corporation and BP have approved proceeding with the construction of the 1.7 million tonne per year Atlas Methanol facility. Atlas will be located in Trinidad next to the Titan plant in which Methanex has a 10% ownership interest. Methanex will own 63.1% and BP 36.9% of Atlas which is expected to cost approximately US$400 million to construct, including financing costs. Delivery of production from Atlas to major markets is expected by early 2004. Project financing is being arranged and Methanex’s equity contribution to the project is expected to be approximately US$100 million. Methanex will market all of Atlas’ production of which approximately 50% will be committed for sale under long-term contracts to Methanex, BP and Air Products.
Pierre Choquette, President and CEO of Methanex commented, “Our investment in Atlas is a significant step in fulfilling our ongoing strategic objective of underpinning our increasing sales volumes with low-cost production.” Mr. Choquette added, “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.”
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