Demolition of former Methanxe plants halted

Blue Horizon announced last week that Ko Yo Development Co. Ltd.,

Blue Horizon announced last week that Ko Yo Development Co. Ltd., one of the  companies that had contracted with Blue Horizon to demolish the old Methanex methanol and ammonia plants, had pulled the plug on the deal.

This comes just six weeks after Blue Horizon said it had renegotiated the contract and, as a result, would get an extra $3 million for the job.

The original agreement” was signed back in February with KoYo Development of Hong Kong and Chinese firm Guangan Lotusan Natural Gas Chemicals.

That called for Blue Horizon to dismantle the plants and ready them for shipping to China by December 31.

At the time Blue Horizon said the amended agreement allowed it to “substantially complete the dismantling of the Kitimat plants by November 30.”

Although no specific reasons have been offered as to why the new contract was so abruptly cancelled,  Donald Allan, president and CEO of Blue Horizon, did say Ko Yo was “experiencing significant logistical issues.”

It is so far unclear what happens from here.

Shell bought the property just weeks ago as the potential site for an LNG plant.

Spokesman Stephen Doolan told the Northern Sentinel that it was not involved in the demolition contract and this latest development would have no impact on Shell’s purchase.

And he was not aware at this time who was responsible for clearing the site.

Rhona DelFrari of Cenovus, the company that sold the site to Shell, echoed Doolan’s statement that the cancellation did not affect the sale, adding that as far as she was aware, Cenovus was not responsible for site clearance.

Attempts to contact Kevin Henderson of Methanex were  unsuccessful as of deadline.