Methanex Corporation, a Vancouver-based producer and global supplier of methanol, idles its Titan plant in Trinidad and will idle its Chile IV plant effective April 1, 2020. The changes are made for an indefinite period, according to the company.
“We anticipate that methanol demand could be impacted in the second quarter of 2020 as there has been a substantial reduction in manufacturing activity in countries that have had significant outbreaks of COVID-19. As a result, we are reducing production at our methanol facilities, where we have flexibility in our gas agreements, to prepare for lower demand for methanol,” says John Floren, president and CEO of Methanex. “We do not expect this production change to have a significant impact on our cash flows in the current price environment.”
He continues, “Given the uncertainty in the global economy and challenging commodity price environment, we are taking steps to strengthen our balance sheet while maintaining financial flexibility. We are evaluating all capital and operating spending, including our advantaged Geismar 3 project.”
Methanex currently has significant liquidity of approximately $700 million, including cash on hand and an undrawn committed revolving credit facility, as well as an $800 million undrawn construction facility for the Geismar 3 project, according to the company.
For more information, visit: www.methanex.com
