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Methanex's New Zealand Methanol Plant Resumes Production

August 16, 2006

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 16, 2006) - Methanex Corporation (TSX:MX)(NASDAQ:MEOH) announced today that is has re-started its 530,000 tonne per year Waitara Valley methanol plant located in New Zealand. This plant is operated by Methanex as a flexible asset. The operation of this plant is dependant upon methanol industry supply/demand dynamics and the availability of natural gas on commercially acceptable terms.

John Floren, Methanex's Senior Vice President, Global Marketing and Logistics, said, "The decision to re-start Waitara Valley is driven by our view of methanol industry balances. As a result of continuing strong demand as well as planned and unplanned supply outages, inventories of methanol are at extremely low levels. We believe that, in this environment, the methanol industry will experience tight market conditions over the next year. Operating our New Zealand plant will help to address some of the additional customer demand that we are experiencing today and offset some of the shortages that are evident in the market."

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 Global Select Market in the United States under the trading symbol "MEOH". Methanex can be visited online at www.methanex.com.






This news release contains forward-looking statements. Certain material factors or assumptions were applied in drawing the conclusions or making the forecasts or projections that are included in these forward-looking statements and Methanex believes that it has a reasonable basis for making such forward-looking statements. However, forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. The risks and uncertainties include those attendant with producing and marketing methanol and successfully carrying out major capital expenditure projects in various jurisdictions, the ability to successfully carry out corporate initiatives and strategies, conditions in the methanol and other industries including the supply and demand balance for methanol, actions of competitors and suppliers, world-wide economic conditions and other risks described in our 2005 Management's Discussion & Analysis. Undue reliance should not be placed on forward-looking statements. They are not a substitute for the exercise of one's own due diligence and judgment. The outcomes anticipated in forward-looking statements may not occur and we do not undertake to update forward-looking statements.





FOR FURTHER INFORMATION PLEASE CONTACT:


Methanex Corporation
Wendy Bach
Director, Investor Relations
(604) 661-2600

or

Methanex Corporation
Diana Barkley
Director, Public Affairs
(604) 661-2600
www.methanex.com