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Business
Total Pays To End Methanex Dispute
by Marc S. Reisch
May 12, 2014
| A version of this story appeared in
Volume 92, Issue 19
To settle a dispute over shortfalls in natural gas deliveries in Chile, methanol producer Methanex will get $42 million from French energy concern Total. Because of supply shortages in Chile of the gas used to make methanol, Methanex is in the process of moving plants with 2 million metric tons of methanol annual capacity from Cabo Negro, Chile, to Geismar, La., where it can take advantage of copious U.S. supplies. All but 900,000 metric tons of methanol capacity is now idle in Cabo Negro where Methanex once had 3.8 million tons of capacity.
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