About Methanex

Methanex Corporation (Methanex) operates as a producer and supplier of methanol to the major international markets in the Asia Pacific, North America, Europe, and South America. The company’s total annual operating capacity, including Methanex's interests in jointly owned plants, is 9.3 million tonnes and is located in the United States, New Zealand, Trinidad, Chile, Egypt, and Canada. In addition to the methanol produced at its sites, the company purchases methanol produced by others under methanol offtake contracts and on the spot market. The company has marketing rights for 100% of the production from the jointly-owned plants in Trinidad and Egypt, which provides it with an additional 1.3 million tonnes per year of methanol offtake supply when the plants are operating at full capacity. Strategy The company prides itself in being a leader in Responsible Care (an operating ethic and set of principles for sustainability developed by the Chemistry Industry Association of Canada and recognized by the United Nations) to have a strategic focus on managing risks and proactive plans relating to personnel health and safety, environmental protection, community involvement, social responsibility, sustainability, security and emergency preparedness. Marketing The company sells methanol on a worldwide basis to every major market through an extensive marketing and distribution system with marketing offices in North America (Dallas and Vancouver), Europe (Brussels), the Asia Pacific (Hong Kong, Shanghai, Tokyo, Seoul and Beijing), South America (Santiago) and the Middle East (Dubai). Most of the company’s customers are large global or regional petrochemical manufacturers or distributors. The company’s ability to sell methanol from geographically dispersed production sites enhances its ability to serve major chemical and petrochemical producers as customers for whom reliability of supply and quality of service are important. In addition to selling methanol that the company produces at its own facilities, it sells methanol that it purchases from other suppliers through methanol purchase agreements and on the spot market. This provides the company with flexibility in its supply chain and allows it to reliably meet customer commitments. Distribution and Logistics All of the company’s methanol production facilities except Medicine Hat are located adjacent to deepwater ports. Methanol is pumped from the company’s coastal plants by pipeline to these ports for shipping. The company owns or manages a fleet of approximately 30 ocean-going vessels to ship this methanol. The company leases or owns in-region storage and terminal facilities in North America, Europe, South America and Asia Pacific. The company also uses barge, rail, pipelines and, to a lesser extent, truck transport in its delivery system. To retain optimal flexibility in managing its shipping fleet, the company has entered into short-term and long-term time charter agreements covering vessels with a range of capacities. The company also ships methanol under contracts of affreightment and through spot arrangements. The company uses larger vessels as key elements in its supply chain to move product from its production facilities to storage facilities located in major ports and for direct delivery to some customers. The company also uses smaller vessels capable of entering into restricted ports to deliver directly to other customers. The company’s Trinidad plants are ideally located to supply customers in all global markets. The company’s plants in New Zealand primarily supply customers in the Asia Pacific region, but can also supply European, North American and South American markets when required. The company’s production site in Chile can supply all global regions due to its geographic location. The company’s Egypt plant primarily services the domestic Egypt market and its European markets but can also supply the Asia Pacific region. The company’s Medicine Hat plant serves its customer base in North America and the Geismar plants can serve customers across North America, Europe and the Asia Pacific region. Natural Gas Supply Trinidad: Natural gas for the company’s Atlas methanol production facility in Trinidad, with its share of total production capacity being 1.1 million tonnes per year, is supplied under a take-or-pay contract with the National Gas Company of Trinidad and Tobago Limited (NGC), which purchases the natural gas from upstream gas producers. The contract for Atlas has a U.S. dollar base and variable price components, where the variable portion is adjusted by a formula linked to methanol prices above a certain level and expires in September 2024. Chile: The company’s primary Chilean natural gas supplier is Empresa Nacional del Petróleo (ENAP). In 2022, the company received natural gas from Argentina from three different natural gas suppliers pursuant to firm supply agreements. These agreements commenced in October 2021 and expired at the end of April 2022. The company also received Argentine natural gas in 2022 from a fourth supplier, YPF S.A. from January until April 2022 and from October through December 2022. We have a gas supply agreement with YPF S.A. that expires at the end of 2025. Egypt: The company has a 25-year, take-or-pay natural gas supply agreement expiring in 2035 for the 1.3 million tonne per year methanol plant in Egypt in which it has a 50% equity interest. Canada: The company has entered into fixed price contracts to supply 80-90% of its natural gas requirements for its Medicine Hat facility through 2031. The balance of the company’s gas requirements is purchased under contracts at spot prices. Foreign Operations The company’s wholly owned subsidiary, Methanex Chile SpA (Methanex Chile), owns two methanol plants on its Chilean production site. Environmental Matters The company is subject to GHG (greenhouse gas) regulations in New Zealand, Canada, and Chile. Trademark Responsible Care is a registered trademark of the Chemistry Industry Association of Canada and is used under license by the company. History Methanex Corporation was founded in 1968. The company was incorporated under the laws of Alberta in 1968 and was continued under the Canada Business Corporations Act in 1992.