Methanex Corporation announces the signing of a Memorandum of Understanding with GeoPark Holdings Limited, which would provide for the long term supply, development and acquisition of new natural gas reserves in Chile. This MOU includes a ten year gas supply and purchase commitment from GeoPark’s Fell Block in southern Chile beginning May 2007. The agreement provides incentives for volume growth up to 100 million cubic feet per day of natural gas and includes provisions for the financing of development operations and the potential joint acquisition of new hydrocarbon blocks in Chile. This agreement is subject to a final contract and required Chilean government approvals.
Methanex’s methanol plant site in Chile produces approximately 10% of the world’s methanol supply. GeoPark is the only private sector oil and gas producer in Chile and has been supplying natural gas to Methanex in Chile since May 2006.
Bruce Aitken, President and CEO of Methanex commented, “We are delighted with the developing alliance that we have with GeoPark. The MOU represents an alignment of the interests of our two companies and we look forward to a long and successful relationship.”
Methanex is a Vancouver based, publicly-traded company engaged in the worldwide production and marketing of methanol.