NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR:  METHANEX CORPORATION

TSX SYMBOL:  MX
NASDAQ SYMBOL:  MEOH

JULY 1, 2003 - 08:52 ET

Methanex Gains Future Operating Flexibility at Kitimat
Methanol Plant

VANCOUVER, BRITISH COLUMBIA--Methanex Corporation has acquired 
the Kitimat, British Columbia ammonia production assets of 
Pacific Ammonia Inc. (PAI) for US$20 million, to be paid in 
installments through to the end of 2005. Under the previous 
ownership structure, Methanex had an obligation to supply 
by-product hydrogen from the methanol production process to its 
site partner PAI for the manufacture of ammonia. This obligation 
expired in 2011. As part of the new transaction, Methanex has 
entered into an off-take agreement to supply Mitsui & Co., Ltd. 
with 100% of the ammonia produced through to the end of 2005. 
During the period of the off-take agreement, Methanex will not be 
taking any cost or market risk. 

Mr. Pierre Choquette, Methanex's President and CEO commented, 
"This transaction gives us the future operating flexibility we 
have been looking for at the Kitimat plant." Mr. Choquette 
continued, "Under current market conditions, Kitimat represents a 
valuable source of methanol supply for our customers, 
particularly in light of recently reduced production capability 
at our New Zealand facilities." 

Methanex is the world's largest producer and marketer of 
methanol. Methanex shares are listed for trading on the Toronto 
Stock Exchange in Canada under the trading symbol "MX" and on the 
Nasdaq National Market in the United States under the trading 
symbol "MEOH." Methanex can be visited online at 
www.methanex.com. 

Information in this news release may contain forward-looking 
statements. By their nature, such forward-looking statements 
involve risks and uncertainties that could cause actual results 
to differ materially from those contemplated by the 
forward-looking statements. They include risks attendant with 
methanol and ammonia production including operational disruption 
and conditions in the methanol industry including the supply and 
demand balance for methanol and its derivatives. Please also 
refer to page 40 in our 2002 Annual Report for more information 
on forward-looking statements. 

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For further information please contact:

Methanex Corporation
Chris Cook
Director, Investor Relations
(604) 661-2600
Website: www.methanex.com