MercoPress. South Atlantic News Agency

Gas from coal to fuel methanol plant in extreme south Chile

Methanex Plant in Pta. Arenas

Canada's Methanex, the world's main producer of methanol, is planning to convert coal into natural gas to supply its huge complex in the extreme south of Chile which has been working below capacity precisely because of insufficient gas, said the corporation's CEO Bruce Aitken.

Methanex has been involved in several projects to obtain Chilean natural gas for its plant next to Punta Arenas, Magallanes Region, since the provision of fuel from Argentina was severely reduced following the Kirchners' decision to privilege domestic consumption in spite of international supply contracts. Punta Arenas has abundant resources of coal but since Methanex needs gas, the Canadian company has decided to build a boiler which should help to convert it to the needed fuel, sadi Aitken. "We hope to show some leadership in the field and prove coal is viable for the generation of electricity and steam, and potentially some gas will be liberated", said Aitken. "The main user of natural gas is basically the city of Punta Arenas and they are sitting on huge deposits of coal, which have never been used", he added. Punta Arenas has a population of 100.000 and Methanex said that Chilean natural gas resources in the area are still under developed and will take time before they produce sufficient energy and therefore the idea of using coal. Aitken said Methanex has not yet made a final decision on the issue which would involve investing 40 million US dollars. Financing for the project and a long term contract for the supply of coal are pending. "It's a project which promises an extraordinary rate of return for the company and the region, but we still have work ahead before we draft the definitive option", said Aitken who admitted that methanol can be extracted directly from coal, but "it's not commercially viable in Chile".