Methanex reaches final investment decision on methanol plant in Geismar, LA
Methanex Corporation announced that its board of directors reached a unanimous final investment decision to construct a 1.8M tonne methanol plant in Geismar, Louisiana adjacent to its existing Geismar 1 and Geismar 2 facilities. Construction on the Geismar 3 plant will begin later this year and operations are targeted in the second half of 2022. The cost of the project is expected to be between $1.3B-$1.4B including costs of approximately $60M incurred to date. The company has a robust and flexible financing plan for the Geismar 3 project. The company has arranged committed financing for the project with a new five-year $800M construction facility and for the renewal of its existing $300M revolving credit facility, which replaces the company's existing revolving facility, to provide further liquidity. Both facilities have been arranged with a syndicate of banks and will expire in July 2024. In addition, the company expects to access the debt capital markets during the second half of 2019 to pre-fund approximately $250M of the Geismar 3 2020 expenditures and to repay the company's $350M aggregate principal amount of bonds due in December 2019.