Methanex says reopens New Zealand methanol plant

WELLINGTON, Oct 09, 2008 (Reuters via COMTEX) -- MEOH | Quote | Chart | News | PowerRating -- Methanex Corp, the world's biggest methanol producer, has resumed production at its 900,000 tonne New Zealand plant, the company said on Thursday.

The Canadian producer said the Motunui plant would operate at least until the end of the year, replacing its nearby 500,000 tone Waitara plant which will now close, to take advantage of extra gas supplies and high energy prices.

Methanex said in May it would spend up to NZ$70 million ($42 million) to reopen the plant, which was shut down in 2004.

Both plants are located in the Taranaki region, on the west coast of the North Island, where New Zealand's commercial oil, gas and petrochemical industry is based.They are regarded as flexible production facilities and used according to demand and gas supplies.

($1=NZ$1.66)

(Reporting by Gyles Beckford)

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