VANCOUVER - Methanex (NASDAQ:MEOH) Corporation (TSX:MX) (NASDAQ:MEOH), the world's largest methanol supplier, announced today a delay in the start-up of its new Geismar 3 (G3) methanol plant in Louisiana. The postponement is due to significant damage discovered during the initial start-up phase.
The company reported that during the late stages of the plant's initial start-up, complications arose in the autothermal reformer (ATR), necessitating a shutdown for safety inspections. These inspections revealed substantial damage to the refractory bricks within the ATR, which are essential for the plant's operation. The specialty bricks require time for procurement, leading management to estimate that commercial production could be deferred until the end of the third quarter of 2024.
Methanex is actively seeking ways to expedite the repair process to minimize delays. Preliminary root cause analysis points to the start-up complications as isolated incidents rather than issues with the plant's design or construction. The company's President and CEO, Rich Sumner, expressed disappointment at the setback but reassured stakeholders of the team's dedication to a safe and quality start-up. He also emphasized that safety remains the company's top priority.
Despite the delay, Methanex does not anticipate the total capital cost to significantly exceed the projected $1.30 billion upper limit. The company's shares are traded on the Toronto Stock Exchange and NASDAQ Global Market under the symbols MX and MEOH, respectively.
This update is based on a press release statement from Methanex Corporation. The company, headquartered in Vancouver, operates as a key player in the global methanol market, supplying numerous international markets.
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