Methanex, via its wholly owned subsidiary Methanex Chile, has reached an agreement with Empresa Nacional del Petroleo (ENAP) for gas supply for the period through May 2018.
This gas supply, when combined with commitments from other sources, is expected to be sufficient to allow the 0.9 million tonne per year Chile I facility to achieve an average annual operating rate of approximately 60% of capacity.
The Company has also signed a Term Sheet with GeoPark Fell SpA ("GeoPark") in order to extend the gas supply agreement with Methanex Chile SpA, for an additional 10 years term, beyond April 2017.
John Floren, President and CEO of Methanex, said, "These agreements reflect the continued drilling success in Chile. We are optimistic that our underutilized 1.7 million tonne Chile facilities represent an excellent growth opportunity for Methanex as further progress is made in lowering the cost of developing these new gas reserves."