In making the announcement, the Canadian firm said it has secured a new natural gas supply agreement, which will enable the restart of the methanol plant at its Waitara Valley site by late in the third quarter, adding 500,000 tonnes of production per year.
In addition, Methanex will add capacity at the Motunui site by increasing distillation to add another 200,000 tonnes annually.
The current estimated capital cost of these two projects is approximately $65 million.
"We are excited to announce another increase to our production in New Zealand, as a result of the improved natural gas supply position that continues to develop in the country," said John Floren, President and CEO of Methanex. " With a modest capital expenditure we are adding 700,000 tonnes of additional production, which is expected to create significant value for shareholders. This added production also enhances our reliable and quality supply capability to our customers in the fast-growing Asian markets."
"With the new natural gas supply agreement, combined with the other secured natural gas supply agreements, we now have arrangements in place to underpin production at our three-plant operation in New Zealand for years to come," he added.
Methanex a Vancouver-based, publicly traded company, describes itself as the world's largest supplier of methanol to major international markets.
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