Methanex extends supply agreement with Alberta methanol plant

Methanex Corp. of Vancouver and Calgary-based Painted Pony Energy Ltd. have announced a 14-year agreement to supply the majority of the natural gas required for Methanex’s existing 600,000 tonne methanol plant in Medicine Hat, AB.

John Floren of Methanex

This agreement commences this year and features a competitive fixed price for natural gas. Contracted quantities will be lower in earlier years to allow for Methanex’s pre-existing natural gas forward purchase contracts and will increase to roughly 50,000 MMbtu/day or approximately 80 to 90 percent of the plant’s natural gas requirements from 2023.

John Floren, president and CEO of Methanex said in a statement, “Having a long-term agreement in place to support our Medicine Hat facility underpins a competitive cost position for years to come. We are delighted to have entered into this agreement with Painted Pony, a company with a very competitive cost position in the prolific Montney play in Western Canada.

This agreement, combined with the 2015 refurbishment of our Medicine Hat plant, solidifies the long-term future of Methanex’s methanol operation in Canada.”
methanex.com.