Methanex has successfully produced first methanol from its new 1.0-million tpy plant in Geismar, Louisiana, the company announced on Monday. 

The plant was relocated from the company's production site in Punta Arenas, Chile.

"We are pleased to announce that our Geismar 1 plant has successfully started up on schedule and is producing methanol," said John Floren, CEO of Methanex. "We expect the plant to ramp up to full production rates over the coming weeks."

Floren noted that the accomplishment marks a key milestone in the company's ongoing commitment to grow operating capacity by approximately 3 million tons over three years.

"It will support our continued growth and strategic focus on global methanol leadership," Floren said. "We continue to make excellent progress on the construction of our one million tonne Geismar 2 plant, and remain on target for methanol production from that facility in late Q1 2016."

Floren said his company did an excellent job in the complex undertaking of relocating two plants from Chile to Louisiana on schedule. 

"The Responsible Care and safety performance during the different phases of the project has also been outstanding, showing that excellent results can be achieved with commitment and dedication," he said.

The Geismar 1 plant was completed over a two-and-a-half-year period, Floren said. The estimated total cost for the completion of both Geismar plants remains approximately $1.4 billion. 

"We believe this represents a substantial schedule and cost savings relative to a new-build plant," the CEO said. "With our cash on hand, undrawn credit facility, robust balance sheet, and strong future cash flow generation, we are well positioned to complete the construction of the Geismar 2 facility and meet our other financial commitments."