VANCOUVER — Methanex Corp. says commercial production at its new methanol plant in Louisiana has been delayed due to complications during the late stages of its initial startup process.

The company says there was significant damage to a large number of supporting refractory bricks at the Geismar 3 plant that will need to be replaced.

Methanex says the specialty bricks will require time to procure and, as a result, management believes commercial production could be delayed up to the end of the third quarter of 2024.

Based on preliminary findings, the company says it believes that the issue relates to complications in the initial startup process and is not a plant design or construction issue.

It says management believes the total capital cost of the plant will not significantly exceed the upper end of its guidance of US$1.3 billion.

Methanex is the world’s largest supplier of methanol.

This report by The Canadian Press was first published Feb. 20, 2024.

Companies in this story: (TSX:MX)

© 2024 The Canadian Press. All rights reserved., source Canadian Press DataFile