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Methanex Corp. of Vancouver (TSX:MX) says it plans to move one of its idle plants in Chile to the state of Louisiana to take advantage of low North American prices for natural gas, which is needed to produce methanol.

The announcement late Tuesday shortly after the U.S. price for natural gas — used as a fuel to heat homes and power plants as well as a feedstock for producing chamicals and fertilizers — hit a 10-year low.

“The outlook for low North American natural gas prices makes Louisiana an attractive location in which to produce methanol,” said Methanex president and chief executive Bruce Aitken.

“It (Louisiana) is also a large methanol-consuming region, possesses world-class infrastructure, skilled workers and is a positive environment in which to do business.”

Aitken said there is strong demand for methanol globally and little production capacity being added to the industry in the next few years. The relocated plant in Geismar, La., is expected to be operational in the second half of 2014.

Methanex announced separately that it’s also planning to restart a New Zealand methanol plant that has been idle since 2004. The restart will cost US$60 million.

The restarted Motunui plant in New Zealand is expected to add up to 650,000 tonnes of capacity per year, with production expected to resume in mid-2012.

Todd Energy, a New Zealand company, has signed a 10-year agreement to supply up to half the natural gas required by the Motunui site