Methanex expects to complete construction on its Geismar 1 plant by the end of the year and begin producing methanol in January.

President and Chief Executive Officer John Floren said all the equipment for Geismar 2 is on site, and Methanex expects the second plant will be producing methanol late in the first quarter of 2016.

The total cost of both projects, originally budgeted at $1.1 billion, has grown to $1.4 billion, Floren said.

Methanex is relocating two methanol plants from Chile.

“While we have experienced cost pressures, we believe that through the relocation process we have been able to accelerate the project development and construction time by 12-24 months and significantly lower the capital cost when compared to the alternative of greenfield projects,” Floren said. “We believe that based on the attractive capital cost and the low-cost North American natural gas environment these projects will provide excellent returns for shareholders.”