Methanex and Mitsui O.S.K. Lines Announce Closing of Strategic Partnership

Rhea-AI Summary

Methanex Corporation (NASDAQ:MEOH) has finalized a strategic partnership with Mitsui O.S.K. Lines, Ltd., acquiring approximately US$145 million for a 40% stake in its subsidiary, Waterfront Shipping (WFS). Methanex retains a 60% majority interest and will manage WFS, leveraging its position as a leading methanol producer and shipper. This partnership aims to promote methanol, especially renewable methanol, as a competitive marine fuel that significantly reduces emissions compared to traditional fuels.

Positive

• Strategic partnership with Mitsui O.S.K. Lines strengthens Methanex's market position.
• Acquisition of US$145 million enhances liquidity and operational capabilities.
• Methanol's environmental benefits position the company favorably amid regulatory changes.

Negative

• None.

VANCOUVER, British Columbia and TOKYO, Feb. 01, 2022 (GLOBE NEWSWIRE) -- Methanex Corporation (TSX:MX) (NASDAQ:MEOH) (Methanex) and Mitsui O.S.K. Lines, Ltd. (TSE:9104) (MOL) announced the completion of the previously announced strategic partnership involving Methanex’s Waterfront Shipping (WFS) subsidiary (NOTE 1). Methanex has received proceeds of approximately US$145 million from MOL for a 40 percent minority interest in WFS. Methanex will retain the remaining 60 percent majority interest in WFS and continue to operate WFS as a key element of its global supply chain capabilities.

Methanol is a safe, proven, cost-competitive marine fuel for the commercial shipping industry that can meet current and future emissions regulations (Note 2). Through this transaction, Methanex as the world leading methanol producer, WFS as the world’s leading methanol shipper, and MOL as the provider of multimodal shipping services will strengthen a relationship established over 30 years and advance the commercialization of methanol, including renewable methanol (Note 3), as a viable marine fuel.

NOTE 1: For further details, please refer to the previous news releases.
July 15, 2021 (Vancouver) / July 16, 2021 (Tokyo)
“METHANEX AND MITSUI O.S.K. LINES ANNOUNCE AGREEMENT ON KEY COMMERCIAL TERMS FOR A STRATEGIC PARTNERSHIP”
Oct 27, 2021 (Vancouver) / Oct 28, 2021 (Tokyo)
“METHANEX AND MITSUI O.S.K. LINES FINALIZE DEFINITIVE AGREEMENTS FOR A STRATEGIC SHIPPING
PARTNERSHIP”

NOTE 2: As a marine fuel, methanol can reduce sulphur oxides (SOx) emissions by up to 99 percent, particulate matter (PM) emissions by up to 95 percent, nitrogen oxides (NOx) by up to 80 percent, and CO2 emissions by up to 15 percent during combustion compared to conventional marine fuels. Also, methanol produced from renewable sources can reduce CO2 emissions by up to 95 percent.

NOTE 3: Methanol is most commonly produced on a commercial scale from natural gas and coal. Methanol can also be made from renewable sources, such as municipal waste, biomass and recycled carbon dioxide.

About Methanex Corporation

Methanex is a Vancouver-based, publicly traded company and is the world's largest producer and supplier of methanol to major international markets. Methanex shares are listed for trading on the Toronto Stock Exchange in Canada under the trading symbol "MX" and on the NASDAQ Global Market in the United States under the trading symbol "MEOH”. Methanex can be visited online at www.methanex.com.

About Waterfront Shipping

Waterfront Shipping, a subsidiary of Methanex Corporation, is a global marine transportation company specializing in the safe, responsible and reliable transport of bulk chemicals and clean petroleum products to major international markets in North America, Asia Pacific, Europe and Latin America. Waterfront Shipping operates the world's largest methanol ocean tanker fleet with its fleet comprising vessels from 3,000 to 50,000 deadweight tonnes. Its fleet of approximately 30 modern, deep sea tankers forms a seamless transportation network dedicated to keeping an uninterrupted flow of methanol moving to storage terminals and customers' plant sites around the world. For more information, please visit www.wfs-cl.com.

About Mitsui O.S.K. Lines, Ltd.

Mitsui O.S.K. Lines, Ltd., founded in 1884, is one of the top shipping companies headquartered in Tokyo, Japan. The company operates more than 800 vessels transporting resources, energy, raw materials and finished products. For more information, please visit www.mol.co.jp/en

For further information, contact:

Methanex Investor Inquires
Sarah Herriott
Director, Investor Relations
Methanex Corporation
+1-604-661-2600 or Toll Free: +1-800-661-8851
www.methanex.com

Methanex Media Inquiries:
Jim Fitzpatrick
Director, Global Communications
Methanex Corporation
+1-604-661-2600 or Toll Free: +1-800-661-8851
publicaffairs@methanex.com

Mitsui O.S.K. Lines Inquires
Media Relations Team
Corporate Communication Division
Mitsui O.S.K. Lines, Ltd.
+81-3-3587-7015
mrtmo@molgroup.com

FAQ

What is the significance of the Methanex and Mitsui O.S.K. Lines partnership?

The partnership strengthens Methanex's position in the methanol market and facilitates the promotion of methanol as a viable marine fuel.

How much did Methanex receive for its stake in Waterfront Shipping?

Methanex received approximately US$145 million for a 40% interest in its subsidiary, Waterfront Shipping.

What is the impact of methanol as a marine fuel?

Methanol can reduce SOx emissions by up to 99%, PM emissions by up to 95%, and CO2 emissions by up to 15%, making it a competitive and environmentally friendly marine fuel.

What percentage of Waterfront Shipping does Methanex retain after the partnership?

After the partnership, Methanex retains a 60% majority interest in Waterfront Shipping.

What are the future prospects for Methanex with this strategic partnership?

The partnership is expected to enhance Methanex's supply chain capabilities and advance the commercialization of methanol in the shipping industry.