Methanex Corp. expects to be producing methanol from its 1.1 million-ton Geismar 1 facility in late 2014, while production from the 1.1 million-ton Geismar 2 plant is expected to begin production in early 2016.
Methanex recorded $100 million in spending related to both facilities during the second quarter. The Geismar update was included in Methanex’s second-quarter earnings report.
The Vancouver, British Columbia-based company reported adjusted net income of $91 million, or 94 cents per share
Methanol is used as a feedstock to produce plastics, textiles, paint and plywood.
Adjusted net income was $91 million, or 94 cents per share, compared to $99 million, or $1.02 per share, a year ago. However, the 2014 results included an after-tax charge of $27 million to settle Methanex’s long-term natural gas contract in Chile with Total Austral S.A. of Argentina. Methanex shuttered the two plants in Chile and moved them to Geismar because of the high natural gas costs in Chile. The 2013 results adjusted net income results added back $22 million related to moving the plants to Geismar.