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Methanex Gains Future Operating Flexibility at Kitimat Methanol Plant

July 01, 2003

VANCOUVER, BRITISH COLUMBIA--Methanex Corporation has acquired the Kitimat, British Columbia ammonia production assets of Pacific Ammonia Inc. (PAI) for US$20 million, to be paid in installments through to the end of 2005. Under the previous ownership structure, Methanex had an obligation to supply by-product hydrogen from the methanol production process to its site partner PAI for the manufacture of ammonia. This obligation expired in 2011. As part of the new transaction, Methanex has entered into an off-take agreement to supply Mitsui & Co., Ltd. with 100% of the ammonia produced through to the end of 2005. During the period of the off-take agreement, Methanex will not be taking any cost or market risk.

Mr. Pierre Choquette, Methanex's President and CEO commented, "This transaction gives us the future operating flexibility we have been looking for at the Kitimat plant." Mr. Choquette continued, "Under current market conditions, Kitimat represents a valuable source of methanol supply for our customers, particularly in light of recently reduced production capability at our New Zealand facilities."

Methanex is the world's largest producer and marketer 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." Methanex can be visited online at

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 risks attendant with methanol and ammonia production including operational disruption and conditions in the methanol industry including the supply and demand balance for methanol and its derivatives. Please also refer to page 40 in our 2002 Annual Report for more information on forward-looking statements.


Methanex Corporation
Chris Cook
Director, Investor Relations
(604) 661-2600