Methanex is in the process of constructing a 1.3 million tonne per year methanol production facility at Damietta on the Mediterranean Sea in Egypt. Methanex has a 60% interest in the joint venture, with 33% held by Egyptian Government partners: Echem (Egyptian Petrochemical Holding Company) 12%, EGAS (Egyptian Natural Gas Holding Company) 12%, GASCO (Egyptian National Gas Company) 9% and 7% held by APICORP (Arab Petroleum Investments Corporation).

Commercial production from the project is expected in early 2010. Methanex will offtake 100% of the methanol from the project and will supply the Egyptian market demand through a distribution agreement signed between Methanex and Echem. This new production hub will integrate seamlessly in Methanex’s global supply chain and enhance the security of supply to the growing methanol needs of our customers. Similar to Methanex’s facilities in Chile and Trinidad, the Damietta site also has the potential to add additional methanol trains in the future that would benefit from economies of scale and synergies from this first plant.

Methanex also believes there are interesting opportunities for growth of methanol derivatives to supply the Egyptian market. The company has recently executed a memorandum of understanding for the development of a dimethyl ether (DME) facility in Egypt, which will be located adjacent to the joint venture methanol plant. The new DME plant will have a production capacity of 200,000 tonnes of DME per year and will consume approximately 300,000 tonnes per year of methanol.

For more information about Methanex in Egypt, please contact:

EMethanex

Hussein Khattab
Chief Executive Officer and Managing Director

17, Port Said Street
Maadi El-Sarayat
Cairo 11431, Egypt

T: +202 23594511
F: +202 23590061

EMethanex Damietta 1 Project

Damietta Port Authority
Private Free Zone Area - New Damietta

T: +202 (0)57-292-106
F: +202 (0)57-292-107