Methanex Corporation and Chesapeake Energy Corporation Sign Long-Term Natural Gas Supply Agreement for Louisiana Methanol

Methanex Corporation and Chesapeake Energy Corporation Sign Long-Term Natural 
Gas Supply Agreement for Louisiana Methanol Project 
VANCOUVER, BRITISH COLUMBIA and OKLAHOMA CITY, OKLAHOMA --
(Marketwire) -- 01/23/13 -- Methanex Corporation
(TSX:MX)(NASDAQ:MEOH)(SANTIAGO:Methanex) and Chesapeake Energy
Corporation (NYSE:CHK) today announced the execution of a 10-year
agreement to supply all of the natural gas required for Methanex's
one million tonne per year methanol plant in Geismar, Louisiana.
Commencement of natural gas deliveries will coincide with the startup
of the plant, which is expected by the end of 2014. 
John Floren, President and CEO of Methanex commented, "We are
thrilled to have entered into this agreement with Chesapeake, the
second largest natural gas producer in the U.S. This contract will
enhance our ability to reliably supply quality product to our U.S.
customers for at least the next 10 years. The agreement is structured
so that the natural gas price is linked to the methanol price, and
both Methanex and Chesapeake will share in the risks and rewards
resulting from the changing price of methanol over the decade of this
contract. This gas pricing formula, in addition to the capital cost
advantage of relocating a methanol plant as compared to a new-build
facility, enables the project to be profitable across a broad range
of methanol prices." 
Mr. Floren continued, "Having a 10-year contract in place for 1
million tonnes of methanol production per year reduces our exposure
to short-term natural gas price fluctuations, which will lower the
natural gas price risk for the site if we decide to relocate a second
plant to Louisiana. We expect to make a decision during the first
half of 2013 on whether to proceed with a second relocation project." 
James C. Johnson, Chesapeake's Senior Vice President of Marketing
added, "We are excited to support the ongoing revitalization of the
U.S. manufacturing sector through our long-term gas supply
arrangement with Methanex, the world's leading methanol producer. The
unique structure of this transaction provides return certainty and
price diversification for Chesapeake while providing margin
protection and price stability for Methanex. Furthermore, Methanex's
investment and plant relocation to Louisiana d
emonstrates the
compounding economic and employment benefits to be derived from the
shale gas revolution. We believe this is truly a "win-win"
arrangement for both companies." 
Methanex is a Vancouver-based company and is the world's largest
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"; on the NASDAQ Global Market in the United
States under the trading symbol "MEOH"; and on the Foreign Securities
Market of the Santiago Stock Exchange in Chile under the trading
symbol "Methanex." Methanex can be visited online at
www.methanex.com. 
Chesapeake Energy Corporation (NYSE:CHK) is the second-largest
producer of natural gas, a Top 15 producer of oil and natural gas
liquids and the most active driller of new wells in the U.S.
Headquartered in Oklahoma City, the company's operations are focused
on discovering and developing unconventional natural gas and oil
fields onshore in the U.S. Chesapeake owns leading positions in the
Eagle Ford, Utica, Granite Wash, Cleveland, Tonkawa, Mississippi Lime
and Niobrara unconventional liquids plays and in the Marcellus,
Haynesville/Bossier and Barnett unconventional natural gas shale
plays. The company also owns substantial marketing and oilfield
services businesses through its subsidiaries Chesapeake Energy
Marketing, Inc. and Chesapeake Oilfield Operating, L.L.C. Further
information is available at www.chk.com where Chesapeake routinely
posts announcements, updates, events, investor information,
presentations and news releases. 
FORWARD-LOOKING INFORMATION WARNING 
This press release contains forward-looking statements with respect
to us and our industry. Statements that include the words "expects"
or other comparable terminology and similar statements of a future or
forward-looking nature identify forward-looking statements. 
More particularly and without limitation, any statements regarding
the following are forward-looking statements: 


 
--  expected timing of the startup of the Geismar plant, 
--  expected levels and timing of natural gas supply to our facilities, 
--  expected operating costs, including natural gas feedstock costs and
    logistics costs, and 
--  anticipated production rates of our restarted facilities. 

 
We believe that we have a reasonable basis for making such
forward-looking statements. The forward-looking statements in this
document are based on our experience, our perception of trends,
current conditions and expected future developments as well as other
factors. Certain material factors or assumptions were applied in
drawing the conclusions or making the forecasts or projections that
are included in these forward-looking statements, including, without
limitation, future expectations and assumptions concerning the
following: 


 
--  satisfaction of conditions precedent contained in the natural gas supply
    agreement including the receipt by Methanex of remaining required
    permits in connection with the Geismar plant, the entering into of gas
    infrastructure and connection agreements and the successful relocation
    of the plant to Geismar 
--  production rates of our facilities, and 
--  operating costs including natural gas feedstock and logistics costs,
    capital costs, tax rates, cash flows, foreign exchange rates and
    interest rates. 

 
However, forward-looking statements, by their nature, involve risks
and uncertainties that could cause actual results to differ
materially from those contemplated by the forward-looking statements.
The risks and uncertainties primarily include those attendant with
producing and marketing methanol and successfully carrying out major
capital expenditure projects in various jurisdictions, including
without limitation: 


 
--  satisfaction of conditions precedent contained in the natural gas supply
    agreement, 
--  conditions in the methanol and other industries, including fluctuations
    in supply, demand and price for methanol and its derivatives, 
--  the price of natural gas, oil and oil derivatives, 
--  the ability to successfully carry out corporate initiatives and
    strategies, and 
--  other risks described in our 2011 Management's Discussion and Analysis. 

 
Having in mind these and other factors, investors and other readers
are cautioned not to place undue reliance on forward-looking
statements. They are not a substitute for the exercise of one's own
due diligence and judgment. The outcomes anticipated in
forward-looking statements may not occur and we do not undertake to
update forward-looking statements except as required by applicable
securities laws.
Contacts:
Inquiries:
Methanex Corporation
Jason Chesko
Director, Investor Relations
604-661-2600
Contacts:
Chesapeake Energy Corporation
Jeffrey L. Mobley
Senior Vice President, Investor Relations and Research
405-767-4763
 
 
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