Methanex Provides Update On Geismar 3 Methanol Plant In Geismar, Louisiana; Delayed Due To Complications That Occurred In The Autothermal Reformer During The Late Stages Of The Initial Start-Up Process
Portfolio Pulse from Benzinga Newsdesk
Methanex Corporation announced a delay in the commercial production of its new Geismar 3 methanol plant in Louisiana due to complications in the autothermal reformer during start-up. Significant damage to refractory bricks requires replacement, potentially delaying production until the end of Q3 2024. The issue is attributed to the start-up process, not plant design or construction, and is not expected to significantly exceed the $1.30 billion capital cost guidance.
February 20, 2024 | 1:06 pm
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Methanex Corporation's Geismar 3 plant delay due to start-up complications may push production to end of Q3 2024, but capital costs are not expected to significantly exceed $1.30 billion.
The delay in the start-up of Methanex's Geismar 3 plant due to complications and the need for replacement of damaged refractory bricks is likely to negatively impact investor sentiment in the short term due to the delay in expected revenue generation from this new plant. However, the management's assurance that the capital cost will not significantly exceed the budget may mitigate some concerns. The negative impact is primarily due to the delay in production start, which is critical for revenue.
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