Methanex sees all Chile plants online in 3-4 yrs

By Monica Vargas

PUNTA ARENAS, Chile, April 30 (Reuters) - Canada's Methanex Corp (MX.TO: Quote, Profile, Research), the world's largest producer of methanol, said on Wednesday that its plants in Chile -- only one of which is now functional -- would be all be operational within 3-4 years.

Methanex, hard hit by cuts in natural gas supplies from neighboring Argentina, is seeking alternative sources by financing or directly participating in exploration projects.

"It will be gradual, we won't go from the current level to four plants from one day to the next," said Paul Schiodtz, senior vice president of Methanex for Latin America.

"It will depend on the success we have with various exploration ventures, because we are no longer thinking of using Argentine gas. Our objective is to function using Chilean gas in three years."

Last June, Chile auctioned 10 exploration blocks in the country's far south, and on Wednesday signed contracts with a group of international oil companies who bid successfully and have agreed to invest $220 million over seven to 10 years.

France's Total (TOTF.PA: Quote, Profile, Research) did not show up to sign the contract for its successful bid, so the government is looking for a new candidate -- and Methanex is next on the list.

"Unlike the other companies, Total did not attend the contract signing. We are surprised," Mining Minister Santiago Gonzalez told reporters.

"We're not too clear why," he added. "We will now enter negotiations with the next company on the list."