Methanex expects gas shortages to Trinidad plants

27 Aug '14

2 min read

Canada based and world's largest producer of methanol, TSX-listed Methanex Corporation expects gas curtailments to its two methanol plants in Trinidad to be around 20 percent in the second half of 2014.

Methanex said it anticipates gas curtailments in Trinidad in the second half of 2014 to be higher than those experienced in the first half of the year.

In a statement, Methanex quoted the National Gas Company (NGC) as advising Methanex, that it should expect higher curtailments in the second half of 2014.

The reason for which NGC said are, due to upstream platform maintenance and tie-in activities and the ongoing mismatch between upstream commitments and downstream demand from customers.

Resultantly, Methanex now estimates curtailments to its two Trinidad facilities to be in the range of 20% for the second half of 2014.

Methanex said it continues to work with the Trinidad government and other stakeholders with a view to resolving gas supply shortfalls to its Trinidad plants.

However, the methanol producer added that the situation is dynamic and it is difficult to forecast the gas curtailments or when 100% gas supply can be expected to return.

Methanex is the operator of two plants in Trinidad, Titan and Atlas and holds 100% and 63.1% interests respectively, in the two facilities.

The combined production capacity of the two plants located in Point Lisas Industrial Estate in Central Trinidad is around two million tonnes.

For the second quarter of 2014, Methanex reported adjusted EBITDA of $160 million, compared to $157 million reported in the quarter ended June 30, 2013.

Adjusted net income stood at $91 million or $0.94 per share on a diluted basis in the second quarter of 2014, compared to adjusted net income of $99 million or $1.02 per share from a year earlier.

Fibre2fashion News Desk - India