Stephen, NG/energy curtailment does not seem to have improved. Do not know if this affects mining operations also but it is an ominous sign that the NG situation may be currently getting worse.
Methanex Advises of Gas Curtailments from Argentina
Monday June 20, 9:26 pm ET
VANCOUVER, British Columbia--(BUSINESS WIRE)--June 20, 2005--Methanex Corporation (NASDAQ:MEOH - News; TSX:MX - News) advises that production from its Chilean methanol plants has been disrupted by curtailments of natural gas supply from Argentina.
During 2004 Methanex lost approximately 50,000 tonnes of methanol production, or less than one percent of its total 2004 global production, as a result of curtailments of Argentine gas supplies to its Chilean facilities. These curtailments took place between May and August, 2004, the winter months in the southern hemisphere. No further production losses occurred until small curtailments in late May, 2005 resulted in two days of minor production losses. However, curtailments that started last week have now become more significant.
The total lost production over the last week as a result of these gas curtailments is approximately 27,000 tonnes, excluding Chile IV. Chile IV was in the start-up phase when these latest curtailments commenced and has now been shut down due to lack of gas availability. At the current rate of curtailment, we have enough gas to produce approximately 5,600 tonnes of methanol per day at our Chilean facilities compared to a total production capacity (including Chile IV) of approximately 10,500 tonnes of methanol per day.
Methanex's President and C.E.O., Bruce Aitken commented, "While curtailments in 2004 and in May of 2005 were quite small, the curtailments that commenced last week have become more significant. The actions of the Argentine government, including the re-allocation of gas entitlements, have had a major impact on the contractual supply of natural gas to our Chilean facilities. In addition, there are a number of other factors influencing gas supply to our plants, including cold weather, greater domestic demand in Argentina, and other dynamics relating to the energy crisis in Argentina."
Mr. Aitken added, "Given the significant nature of these new curtailments, we have come to the conclusion that production losses due to curtailments in 2005 could be worse than 2004. However, we continue to believe that there is sufficient gas in southern Argentina and Chile to allow all of the delivery obligations under our gas contracts to be satisfied. We are considering various avenues to alleviate this situation, including investigating our available legal remedies." |
