Methanex Idles Trinidad, Chile Plants
Methanex has idled its Titan plant in Trinidad effective Mar. 16 and will also idle its Chile IV facility as of Apr. 1. The Canadian methanol producer said the changes are for an indefinite period.
“We anticipate that methanol demand could be impacted in the second quarter of 2020 as there has been a substantial reduction in manufacturing activity in countries that have had significant outbreaks of COVID-19,” said president and CEO John Floren. “As a result, we are reducing production at our methanol facilities, where we have flexibility in our gas agreements, to prepare for lower demand for methanol. We do not expect this production change to have a significant impact on our cash flows in the current price environment.”
Floren added that the company is also evaluating all capital and operating spending, including the Geismar 3 project. Methanex gave the go-ahead last July on the 1.8 million t/y plant, which will be built adjacent to its two existing facilities in the US state of Louisiana. KBR is providing detailed engineering, procurement and construction services, which are due to complete in the second half of 2022.
Methanex said it currently has significant liquidity of approximately $700 million, including cash on hand and an undrawn committed revolving credit facility, as well as an $800 million undrawn construction facility for the Geismar 3 project.
