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More gas availability enables Methanex to restart Motunui plant
12 June 2008, Sources: Methanex, Contact Energy and Lindsay Clark - Improved natural gas supply in New Zealand has prompted Methanex Corporation to restart one of the twin-trains at it’s idled methanol plant at Motunui, near New Plymouth.
Methanex says in its first quarter report that it has agreed to terms of a natural gas supply arrangement which will allow the opening of a 900,000 tonne per year capacity production plant at Motunui.
Methanex says there will be enough gas to operate this facility until at least the end of 2009.
The company’s other methanol plant at nearby Waitara Valley, which has a capacity of 530,000 tonnes, will be kept running until Motunui restarts.
Waitara Valley produced 120,000 tonnes of methanol during the first quarter of 2008 compared with 75,000 tonnes during fourth quarter of 2007 when it was closed for a time for planned maintenance.
“The continued operations of the flexible New Zealand facilities is dependant upon industry supply and demand and the availability of natural gas on commercially acceptable terms,” Methanex says.
The company has also indicated it will invest in downstream gas exploration by the announcement that it will invest in exploring a southern Chile to help supply its plant there.
Meanwhile confidence in New Zealand future gas supply was strengthened with Contact Energy reporting that the Maui joint venture partners have firmed 62 PJ of Maui natural gas from P50 reserves to P85 reserves. Contact is entitled to 38PJ of this gas tranche.
Contact Energy's chief executive, David Baldwin, said the firming of the reserves supported the company’s view that domestic gas sources are likely to be sufficient through to about 2015.