METHANEX DEFERS GEISMAR 3 PROJECT SPENDING AND PROVIDES BUSINESS UPDATE

• Defers approximately $500 million in capital spending on Geismar 3 project for up to 18 months
• Reduces 2020 maintenance capital spending by $25 million
• Increases financial flexibility through $436 million draw on credit facilities

VANCOUVER, British Columbia, April 01, 2020 (GLOBE NEWSWIRE) -- Methanex Corporation (TSX:MX) (NASDAQ:MEOH) announced today that, in light of the significant uncertainty in the global economy from the COVID-19 pandemic, resulting in a challenging commodity price and project execution environment, it is taking action to defer approximately $500 million of previously announced capital spending on its Geismar 3 methanol project for up to 18 months. Methanex also provided an update on other actions it is taking to strengthen its financial position.

John Floren, President & CEO of Methanex, commented, “We are taking proactive steps today during these unprecedented times to further strengthen our balance sheet, while maintaining long-term value and financial flexibility. We believe that deferring major capital spending on our advantaged Geismar 3 project, and minimizing near-term spending, is a prudent decision in the current environment. We have ample liquidity today with approximately $800 million of cash on the balance sheet and we continue to evaluate all capital and operating spending as we navigate this challenging environment.”

This announcement follows the Company’s previously disclosed decision to idle its Titan plant in Trinidad effective March 16, 2020 and its Chile IV plant effective April 1, 2020, both for an indefinite period. Those two plants represent approximately 19% of Methanex’s annual operating capacity of 9.2 million tonnes.

Details on Geismar 3 Project

The Company is placing its Geismar 3 project, which will be its third methanol plant in Louisiana adjacent to its existing Geismar 1 and Geismar 2 facilities, on temporary “care and maintenance” for up to 18 months. The expected capital spending during a deferral of up to 18 months is the same as the expected capital spending that would have been incurred if the project was cancelled outright. This action will enable the Company to complete this highly advantaged project when market conditions improve.