Methanex Corporation (TSX:MX, NASDAQ:MEOH) and Chesapeake Energy Corporation (NYSE:CHK) have entereed into a 10-year agreement to supply natural gas to Methanex’s one million tonne per year methanol plant in Louisiana.
As quoted in the press release:
Commencement of natural gas deliveries will coincide with the startup of the plant, which is expected by the end of 2014.
Methanex,s President and CEO, John Floren, said:
Having a 10-year contract in place for 1 million tonnes of methanol production per year reduces our exposure to short-term natural gas price fluctuations, which will lower the natural gas price risk for the site if we decide to relocate a second plant to Louisiana. We expect to make a decision during the first half of 2013 on whether to proceed with a second relocation project.