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Methanex awards open contract for engineering and project management services to Aker Kvaerner

Methanex Chile Limited, the world's largest producer and marketer of methanol, has awarded a two year contract to Aker Kvaerner for engineering and project management services at its plant at the southern tip of Chile.

Methanex Chile Limited, the world's largest producer and marketer of methanol, has awarded a two year contract to Aker Kvaerner for engineering and project management services at its plant at the southern tip of Chile.

The contract, with some 50,000 estimated man-hours, is valued at approximately USD 2 million and is scheduled for completion in May 2006, expandable to May 2007. Methanex's total capital cost for the projects is approximately USD 18 million.
 
Aker Kvaerner will under the new contract provide services to modify, expand, improve and optimise existing facilities. The scope of work includes pre-investment studies, feasibility studies, basic and detail engineering, as well as project execution and management. Aker Kvaerner will utilise local resources in Punta Arenas, Aker Kvaerner's Santiago office and the extensive methanol expertise at Aker Kvaerner's Houston office.
 
Methanex's methanol production facilities are located at Cabo Negro, near the city of Punta Arenas in the heart of Chile's petroleum and gas producing region. The facilities give Methanex its largest low-cost production hub. Its three methanol plants have a combined annual capacity of three million tonnes, with a direct Methanex workforce of approximately 220 people. This production capacity will rise to nearly 4 million tonnes when the new production plant is commissioned by Q1-2005.
 
Aker Kvaerner successfully completed two lump sum, turnkey contracts for Methanex in the 1990s for design and construction of its second and third production units.
 
The Aker Kvaerner entity that is signatory to the new contract is Kvaerner Metals, Agencia en Chile de Kvaerner E&C Worldwide Corporation.