Methanex restarts build in Louisiana, increases dividend
By MEDICINE HAT NEWS on July 17, 2021.
medicine@MedicineHatNews Methanex will restart construction on a major expansion of its plant site in Louisiana, the global methanol producer stated Friday along with announcing it had formed a new shipping partnership and would increase dividends to shareholders. The company had paused major construction on the Geismar 3 project last year during the initial turmoil on world markets caused by the COVID pandemic, but continued with some engineering work. “The timing is right to restart construction on our Geismar 3 project as the methanol industry outlook is positive,” said CEO John Floren in a release. The manufacturer with a major facility in Medicine Hat expects global demand for the industrial anti-freeze, plastics additive and alternative fuel to grow by 20 per cent over the next five years, or about 16 million tonnes. Analysts say only 14 million tonnes of new production capacity, including Geismar 3, is set to come online over that timeframe. The company also announced the expansion’s budget is now about US$1.3 billion, about US$100 million less than previous estimates. New cash flow and financial position allows Methanex to reduce some financing vehicles for the project. The company restored the quarterly dividend to 12.5-cents per share, up from 3.75-cents. 9-8
