VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 20, 2005) - Methanex Corporation (TSX:MX)(NASDAQ:MEOH) has entered into an agreement to provide terminalling services to EnCana at Methanex's Kitimat, British Columbia site. EnCana advises that it plans to import diluent through this terminal for use in its oilsands projects in Alberta.
In addition, the agreement provides EnCana the option to buy from Methanex, and Methanex the option to sell to EnCana, the Kitimat site (excluding the methanol and ammonia facilities), within the five-year term of the agreement. Methanex recently announced its plan to shut down its Kitimat production facilities in early January 2006.
"This is a win-win for Methanex and EnCana," said Bruce Aitken, President and CEO of Methanex. "It will enable us, over time, to offset some of the Kitimat shutdown costs and will provide EnCana with a convenient terminalling facility on the west coast of Canada." Aitken continued, "An important feature of the agreement is our right to use the Kitimat terminal facilities to import methanol from our other production facilities through Kitimat. This will allow us to continue to provide a secure, long term supply of methanol to our customers in the Pacific Northwest."
The agreement is subject to certain conditions precedent. Methanex expects to commence terminalling services for EnCana in early 2006.
Methanex is a Vancouver based, publicly-traded company engaged in the worldwide production and marketing of methanol. Methanex shares are listed for trading on the Toronto Stock Exchange in Canada under the trading symbol "MX" and on the Nasdaq National Market in the United States under the trading symbol "MEOH".
Information in this news release may contain forward-looking statements. By their nature, such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. They include world-wide economic conditions, actions of competitors, the availability and cost of gas feedstock, the ability to implement business strategies and pursue business opportunities, conditions in the methanol and other industries including the supply and demand for methanol and the risks attendant with producing and marketing methanol, integrating acquisitions and realizing anticipated synergies and carrying out major capital expenditure projects. This release also refers to agreements that are subject to conditions precedent. There can be no assurance that these conditions will ever be satisfied. Please also refer to our publicly available documents filed from time to time with securities commissions.
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