-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 Mle4pRIb8uyLKLN1iQok4+ePvPUD78Q6aPdGqqLnQbxxKgimSBUZiaHpQr5RPAz5
 CMjB36Mg4w9Kj81QClCjXg==

<SEC-DOCUMENT>0000945234-07-000034.txt : 20070531
<SEC-HEADER>0000945234-07-000034.hdr.sgml : 20070531
<ACCEPTANCE-DATETIME>20070130172218
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000945234-07-000034
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		3
FILED AS OF DATE:		20070130

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			METHANEX CORP
		CENTRAL INDEX KEY:			0000886977
		STANDARD INDUSTRIAL CLASSIFICATION:	INDUSTRIAL ORGANIC CHEMICALS [2860]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			A1
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		1800 WATERFRONT CENTER
		STREET 2:		200 BURRARD STREET
		CITY:			VANCOUVER BC CANADA
		STATE:			A1
		ZIP:			00000
		BUSINESS PHONE:		6046847500

	MAIL ADDRESS:	
		STREET 1:		1800 WATERFRONT CENTER
		STREET 2:		200 BURRARD STREET
		CITY:			VANCOUVER BC CANADA
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<HTML>
<HEAD>
<TITLE>SEC Correspondence Letter</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="14%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="24%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Methanex</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1800 Waterfront Centre
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telephone:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(604) 661-2600</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Corporation</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">200 Burrard Street</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vancouver, British Columbia
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Facsimile:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(604) 661-2666</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Canada V6C 3M1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="bottom">January&nbsp;15, 2007
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom"><IMG src="o34537o3453700.gif" alt="(Methanex Logo)"></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>VIA FACSIMILE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Gus Rodriguez<BR>
Mr Rufus Decker<BR>
U.S. Securities and Exchange Commission<BR>
Division of Corporation Finance<BR>
Washington, D.C.<BR>
20549-7010

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Dear Mr Decker &#038; Mr Rodriguez:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>RE:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Form&nbsp;40-F for the Fiscal Year ended December&nbsp;31, 2005</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Forms 6-K for the Fiscal Quarters ended March&nbsp;31, 2006, June&nbsp;30, 2006 and September&nbsp;30, 2006</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>File No.&nbsp;0-20115</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have reviewed your additional comments outlined in your letter of December&nbsp;12, 2006 relating to
the captioned item and offer the following responses below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>FORM 40-F FOR THE YEAR ENDED DECEMBER 31, 2005</B></U><BR>
<U><B>Exhibit&nbsp;2</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>SEC Comment:</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><U>Management&#146;s Discussion and Analysis, Results of Operations, page 34.</U>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We have read your response to comment 2. The pages you cited in your response do not
appear to inform investors of the reasons for the decline in revenues in the United States,
your largest market and a market that represents 35% of your total revenues. Please
provide comprehensive disclosures for each of the following bullet points:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Please revise your management&#146;s discussion and analysis disclosures to quantify
the reasons for the decline in net sales from $656.7&nbsp;million in 2004 to $585.8&nbsp;million
in 2005 in the United States in terms of the amount of increase or decrease due to
prices, volume and foreign currency. Please revise your management&#146;s discussion and
analysis disclosures to quantify the reasons for the changes in operating income in the
geographic regions disclosed in Note 11. Please also provide a comprehensive discussion
of the underlying reasons for these and other changes.</TD>
</TR>

</TABLE>
</DIV>
<P align="right" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Please revise your management&#146;s discussion and analysis disclosures to quantify
the reasons for significant changes in net sales and operating income on a consolidated
basis, such as the reason for the decline in consolidated revenues from $1.719&nbsp;billion
in 2004 to $1.658&nbsp;million in 2005.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On page 44 you identify trends of decreasing MTBE consumption in the US and
unfavorable reclassifications of formaldehyde. To enable readers to better understand
the impact of these trends, please quantify the
impact on volume and revenues of the trend of decreasing MTBE consumption in the United
States for each period presented. If material, please provide quantification of the
impact of the decrease European Union MTBE consumption. Please quantify the impact of
the reclassification of formaldehyde in the United States on sales in the United States
in terms of volume and revenues.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our response:</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><U><B>General </B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">As noted in our letter of November&nbsp;23, 2006, the Company&#146;s operations consist of a single
operating business segment &#151; the production and sale of methanol (see note 11 to the
consolidated financial statements). Although we have disclosure obligations under Canadian
GAAP related to revenues and property, plant and equipment attributable to geographic
regions, no one geographic region constitutes an operating business segment and therefore we
do not report operating income by geographic region. The analysis in the Management&#146;s
Discussion and Analysis (MD&#038;A) is based on the single operating business segment &#151; the
production and sale of methanol.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">There are many factors that impact our global and regional revenue levels. As disclosed in
the MD&#038;A, the methanol business is a global commodity industry affected by supply and demand
fundamentals. Due to the diversity of the end products in which methanol is used, demand for
methanol largely depends upon levels of industrial production and changes in general economic
conditions which can vary across the major international methanol markets. Therefore,
revenue levels have varied over time from region to region based on these types of factors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Additionally, in order to optimize our supply chain costs, including shipping, we supply our
customers from three different sources of product &#151; our own produced methanol (Company
Produced Methanol), methanol we purchase from others (Purchased Methanol) and methanol that
we sell on a commission basis (Commission Sales) where we do not take risk and title to the
product. The proportion of Commission Sales in a period will impact the level of revenue as
only the commission is included in revenue when earned.
</DIV>

<P align="right" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><U><B>Changes in Revenue &#151; United States</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">In the United States revenue declined by $71&nbsp;million from $657&nbsp;million in 2004 to $586
million in 2005. The following is a summary of methanol sales volumes and revenues for the
United States in 2004 and 2005:
</DIV>
<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="96%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="53%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>United States</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Sales Volume</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Revenue</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Sales Volumes</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Revenue</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Sales Volumes and Revenue</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">(tonnes, millions)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">($, millions)</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">(tonnes, millions)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">($, millions)</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Company Produced
and Purchased Methanol</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">656</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">583</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commission Sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2.96</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>657</B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2.88</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>586</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 3px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 3px solid #000000">&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 3px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The change in revenue is explained as follows:
</DIV>
<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="96%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><I>($, millions)</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Price &#151; higher methanol prices realized</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Volume &#151; Lower sales volumes of Company Produced
Methanol and Purchased Methanol</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(83</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Higher Commission Sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(71</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">We supply our customers from three different sources of product &#151; Company Produced Methanol,
Purchased Methanol and Commission Sales. Total sales volume of methanol in 2005 for the
United States, including Commission Sales, decreased by 0.08&nbsp;million, or approximately 3%,
from 2.96&nbsp;million tonnes in 2004 to 2.88&nbsp;million tonnes. Although total sales volumes
declined by only 3% in 2005, the volume of Commission Sales increased by 0.35&nbsp;million tonnes
from 0.15&nbsp;million tonnes in 2004 to 0.50&nbsp;million tonnes in 2005. The increase in Commission
Sales as a proportion of total sales volumes results in a decrease in revenue as only the
commission is included in revenue. Commission Sales represent volumes marketed on a
commission basis related to the 36.9% of the Atlas methanol facility that we do not own. The
Atlas methanol facility commenced operations during the second half of 2004 and as a result
the volumes sold and commissions earned were higher in 2005. In order to optimize our supply
chain costs, including shipping, substantially all of the product that we source on a
commission basis from the Atlas methanol facility in Trinidad was sold in the United States.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">You have also asked us to consider quantifying the reasons for changes in operating income in
the geographic regions disclosed in note 11. As noted above we operate and analyze our
business as a single operating segment &#151; the production and sale of methanol. Accordingly,
the analysis in the MD&#038;A is based on this single operating segment. We do not measure or
analyze operating income on a geographic basis. Methanol is a globally traded commodity
chemical and the geographic regions where we record substantially all of our
revenues, as disclosed in note 11, do not correspond to the geographic regions where our
major methanol production facilities (Chile and Trinidad) are located.
</DIV>

<P align="right" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><U><B>Changes in Consolidated Revenue and Operating Income</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">We have provided a comprehensive analysis of the changes in net income under the heading
&#147;Results from Operations&#148; on pages 34-38 which reconciles to the&#147; Financial Highlights&#148; on
page 32 of the MD&#038;A. This should be read in conjunction with &#147;How We Analyze Our Business&#148;
on page 31. This discussion provides analysis of changes in the components of our Adjusted
EBITDA, depreciation and amortization, interest expense, interest and other income, unusual
items and income taxes. We analyze the results of sales from Company Produced Methanol
separately from sales of Purchased Methanol and Commission Sales as the margin
characteristics of each are very different.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><U><B>Discussion of Risks and Trends</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The matters you have noted related to MTBE and formaldehyde relate to matters discussed in
our MD&#038;A under the heading &#147;Risk Factors and Risk Management&#148; on pages 42-48 are more in the
nature of risks, uncertainties and potential future trends than actual historical trends.
These matters have the potential to decrease the demand for methanol in the future and could
impact future methanol prices.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><I>MTBE demand in the United States</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">We have not quantified the changes of MTBE between 2004 and 2005 because the demand levels
were similar between the two years. Per Chemicals Market Associates Inc.(CMAI), a respected
analyst of the methanol industry, methanol demand for MTBE in the United States was 2.4
million tonnes in 2004 compared with 2.3&nbsp;million tonnes in 2005.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">We have discussed the risks and trends related to MTBE on pages 43-44 under the caption
&#147;Demand for Methanol in the Production of MTBE&#148;. We note that &#147;We expect that in 2006, United
States demand for methanol for MTBE will decline by about 50%. However, the pace of decline
in United States methanol demand for use in MTBE is uncertain and will be determined by
various factors including the decision of United States-based MTBE producers and blenders to
continue to make or use MTBE in gasoline following expiry of the federal oxygenate standard,
MTBE&#146;s relative blend value in gasoline and the ability of the United States gasoline pool to
find sufficient quantities of alternative high-octane gasoline components to avoid the
potential for gasoline shortages and price spikes. Some large United States refiners have
already stated that the United States EPA is preparing internal reports relating to the
potential carcinogenicity of MTBE and a report is expected to be released in late 2006.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><I>MTBE demand in Europe</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">We have not quantified the impact of a decrease in European demand for MTBE because the
decline was not material.
</DIV>

<P align="right" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><I>Formaldehyde</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">On page 44 and 45 under the caption &#147;Demand for Methanol in the Production of Formaldehyde&#148;
we outlined a number of studies that are being undertaken regarding the classification of
formaldehyde. We are unable to determine whether the bodies noted will reclassify
formaldehyde or whether any other regulatory proposals will come into effect or determine
whether any reclassification would reduce future methanol demand for use in producing
formaldehyde. Methanol demand for formaldehyde remained healthy in 2005 and per CMAI grew by
approximately 3%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In our 2006 annual MD&#038;A we will consider including an analysis and discussion of consolidated
revenues and will comment on any significant trends related to geographic regions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Methanex Corporation (the Company) acknowledges that:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company is responsible for the adequacy and accuracy of the disclosure in its filings with the SEC</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>SEC staff comments or changes to disclosure in response to SEC staff comments do not foreclose the SEC from taking any action
with respect to the filing; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company may not assert SEC staff comments as a defense in any proceeding initiated by the SEC or any person under the
federal securities laws of the United States.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Yours truly,

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">METHANEX CORPORATION

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="o34537o3453701.gif" alt="(-s- Ian P. Cameron)"><BR>
Ian P. Cameron<BR>
Senior Vice President and<BR>
Chief Financial Officer

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">cc.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">KPMG LLP</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">McCarthy Tetrault LLP</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman of the Audit, Finance and Risk Committee of Methanex Corporation</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="right" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>2
<FILENAME>filename2.gif
<TEXT>
begin 644 filename2.gif
M1TE&.#EAD0!6`/0``,#`P$!`0.#@X/#P\-#0T*"@H)"0D+"PL!`0$'!P<%!0
M4&!@8"`@(#`P,`\/#S\_/Q\?'T]/3R\O+W]_?U]?7V]O;[^_OZ^OK^_O[X^/
MC\_/SY^?G]_?WX"`@````/___RP`````D0!6```%_^`GCF1IGFBJKFSKOG`L
MSW0*?$?W)7G78;6@<$A\&7"W@("`^`0"!P]FPE@<BMBLUC48X+R&P<$`6'02
MG@-#DO%$`@O!=D[/=C^`+D``.``*9PD*%101%`X>$AX90'6.CR\$(@4X5QU+
M`0."!0@3&1(5'FX>$`X)7I"IJB4"<CH?"Q^`'QX``!X"#1,8'A0/'J$0#P@W
MJ\:J5TL?EP(*`@D)3`D+#Q\2#J&''K\)Q]Z.K5T$!`,`!@4&!@H&"W`4&1&]
M'@Z*$!X*J-_Z0ZUXDQ\$+!T@H(!`!P4+*DR((.$:J7FB&N3;1Y$&I8$[NBCX
MH$`'@G120%W89N^7*`\2*_^JG''EPY$_',=Y6!;@UH4V&D11V(9(5*R50%L(
MZ"+GQH`"?&PM.%?S084V#$=!L"?J5="K)R0-D'2@"](^@-(E"!"A@B$'#NSU
M/%D+J]L2E%SBL81IAP).&RI(F#`OGD.V#":^Q2K@2AB.LHXT*'!+0``*O"CL
MY.O`Y,EN@]T.Q?&!S[)62@I$0[!@`00-UT)%H,H65V;"7@@,;26[L($#816\
M>Q`!T4YZK3T$>$W8E:M*`SKT45`FPH4'%!0I>AA<#O&5Q8X(H!1GP,:#M`R@
MP2`!@NJ2P7]>5[GUR[)*._P@<!R!UX1??(4%]X!`\/IO1,T64"L=$`#(`0@I
M(,'_!:7$\P!ZP<7U7T7)W'``@0%UH,X"@RS$VU1IL<;61A/NTT\<.R3V00/C
M($#`8Y'Q19EEP:WB@P]'F`#`C9>4P../5N$!Y(_%".F#A$;Z($(QR23`(P,N
M;>2!`1W,M,$%&GB"W@,3='E2D<L,J>0(.]Z())4WEM`:F"(PP!:;^YU$0I5Q
MBE(DG<+->5(#)-`V0'`=,%;3`A%H8`$)&C@0CP<3C'!2CB+4.=,(`K1F70%L
MJ1=IIG"MJ6:=>DIZYTG#C8!GJ1^T9TYZN*VCVP6'DO"+/8UNZH%ZMX!*`AJD
MIHK`2?WU61T);KY)0JZB/*$LJK+\VAH#`;@IB0BGAIJG_S]R*0!H`0L,@``T
M$L0ZPDB*U$I+LF2RM>P3)7C[IK:/EH#L2589,&RZ<K;0`+TGP'NM"`'T>H-G
MF.Y'QDR/?2#N"#LQ*@(OHD"YY)XL%!RQNCH&)[&[K<E+<0ML!3E"P.B.W&MG
M(@B`)P+.>G`&`0R()X$&(G`P0@8[;2""!6SA^Z\*^^XW[;'`GD3)ROGZW(`M
M3%MG0L@GD.P!`T^>;)T:)W%X&97J/)#!"!/8_`$&B,3*<]+(+LUT'B?,RV_&
MHO`JG`#./I'TQ'&*[.B744L:MRRI,L86("<I<``4`80+MKD[F=TSM76R:3)@
M*.#9P0)[?BEU"?;&*;FM;9D@=?^=RLGBA;\(*.!OGBY7";8#(W#@@>-)XQG<
MYSBTAJ2U`P4WW.;6WHZ"L28$/?6R4&LU;TWSVEM``-6`7<$%(SQ`NRBF1G["
M`,6>;`*>-QAOIQ-W+_/V"O-^#O7>5776A=QY=Q!``O"`G<BXL6X`;/;ML[#Z
M22WQ$=\L=JW]64MO;2/>I_H'N@7<8`_BVT\##-"`=YBK`O80E]CX4C+S,3`%
MG0M.L$K@+Z.TK!C>@]P';?"XIYWO7.T[`@'\!L`&2$!6O8F`"3AXJQ'X"X$D
MF.&>X$<B$DC-.IC[5PIA02HB);!\[`L=Z!B#A]41`PXA3`.C+!"]#\P*`F*S
M'P.E%@#_)XY@`.(C1\O24`+@`61\MF(6^?+V1.R=0(&5^E(K\IBL'8V!@`RX
M0`6L5[U%48\$/"S2Z'2WJ_5E,3!&O!N[V"?'1;(%4B3(XO84F#Y9$#`!`EB`
M@1+0/0_DA0+B>@!:T-(($?`PDI[SV=2(Q1;,B&`LDQ2!'XSX!%O><EG&8\#0
M2/`\965E64-[D;)PLX,&!"!U`!C..IC`@%\]P"D7")<%+%`/>U1@F]LT21%W
ML"Y2#4T!RP)3-)?EG_44Y3@J<\D57&0`*,W/7AS@2TXD$(^&U6EW):I#.`:P
MA'$,2``&,!`9`@`(ZUV3+ZN1QU3B-,*`UF$/@!O`$0:B,@(`_R`!YDB`.CI`
MB`F4ISSV2*FD-&71+5#B*+*0`Y\(XI(CT),8$<C`2$PJC\IL0U).6U([#-?2
M(,A!-H"+YP&N@`\$.4$Y4M`?+2`P&9VL%"X-`&DT?5E4&`PE0.1`:"LN=(X7
M[:@!!S!/&RA@#_WI!Z@DX-Z?$C`?%G75JW)XZ14`0`X#+,$/MQ'/Y9X0`=Z4
MAQ03A0@=C]6-6@AS%G=5P3CD\IX"<(>@PU&2BSA!$*KM)1ZA4%0B$"$BP`AF
M1[2@*PZ`&%F`_&.R.HAG`>89D":HKE*7F\F#]!?1ADU':";(!2U6%,H`MK9=
M72`H4;9"T`)L):$:(@@@B.&&G+"54?]]^>D_45":;HB&3\=%04!,!U..)M0<
MYZ#2`@1!V$(\*"WPI4Z<6%H"4D:K6^%502S,`0N";D2D:!P#3A_0`2[MY!`^
M+85\TY-?+%S".[+HAHNBX(1,S$Y_Y''`2*XICT34B;X-K@$?9%,`CQ;D9=\:
MSWUR$H%XM`$8\U@+@T.,A<($9!SI&*D"&O`4LUQ3E:)U2&G9@@"`TE@(FH"%
M`Q%P@`1(P`#0N8"B%-$;#RMXR!$9YI&Q8(LJ$8#'M+@`7Z2,C6W\8E$49>V6
MB1`04V8SPQ#]12A&\>%VKED+!3`+0^C!YY^B)4Y4L_.=YX`!#23N&HM2Q)\!
MPX-![P,`''#_4@4",.DGF.%"CLZTIC?-Z4Y[^M.@#K6H1TWJ4IOZU*A.M:I7
MG6G/M*MI6RA'*]B6*HRVC:^1\$%0S:'EE>PKJ"YA"["'$`7Q>&!:Q38!&OE6
ML3+*KQC/W!?N]%&IF)4`<Q248A'X,("`94]R]G+2E/15AJ4-YT^2:(":O5&`
M"8)W!&[BWGQ(%H>@48D_+ENV!Z(!+$[PQS$SP7<3O,TK\`9LU@!PUE*31:?`
M*"=@W<;#I%*&@&K6]E?5_!W+AA,%!O"I`Q6?#Y,YLFX4=&2&3ON3T>R5[2H9
MH(S:N@5"M,C0*56392]GPM+N@;D/(&#G9YC4+*D%!9>A81WW0`,`_Y8FOQ=)
M?$[#,0,`H*3N6SC!K[@`\$PNMZ(R=.O8,OB3&<8]L0!H2WY[BL(]/L``!MRB
M`VW_DP*4+AQM%7F&(DW#,V<X=CG)'`\$2*+>M\Z6HS`4[@^<>)C"%$TGV`)A
M-ZB%O[>N@YJH00TSX,03/)X]='B`$PU069D"%@6DWZ+H%*1N&3%5<VX=^QZ8
M>IX'DD.)M]_"3;FM5-1Q$:@EZ5H$Z'XJUYW4>.8A[`JU"$`8*.]XGV=U!@C1
MI6O(%TK'5OSU;2_RU"I.BY#_J8S""3\TCNVF@(GFV-K:UQ5FR#*7A=]%^V;B
MOC!9`FBAP;((`+F@'&_U`&35MF;'?#7!1%V]U@()92J7H@.`L`2_UP,JLV\%
MLEK,H!P[HC*]-PL:<H&QY0-%T@-YH"'G('JIPH$J8(%Q$1:=00E($4_S4SH&
?025)$5,N(3'>X&U;-H`M,'?Z$'U;AA0NT",J$`(`.S\_
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>3
<FILENAME>filename3.gif
<TEXT>
begin 644 filename3.gif
M1TE&.#EAR`!(`,0``']_?[Z^O@\/#^[N[C\_/][>WL[.SA\?'XZ.CF]O;R\O
M+YZ>GE]?7ZZNKD]/3P```/[^_@``````````````````````````````````
M`````````````````````````"'Y!```````+`````#(`$@```7_("2.9&F>
M:*JN;.N^<"S/=&W?>*[O?.__P*!P2"P:C\BD<AE8(```AP-J6%JOV-.@R1`\
MON"P8I`MFXD&`.,`%AP24&@`ZF6<[WA<DP`^.!I5*0T/!'F&ARL#"P!>7V\+
M9"R#A8B5E0$)C0(."P$P`UX-EJ-W<PI@#@B1,0D/#J2P5P4&#F`$"P4U#0("
M@;&_10VU7P0(N38%7@C`S$*M8`N^-Z>4S=8Z"WP/`@F>.ZT*Q]?C,P4(IX0-
MXCJ#!^OD\"R87P(,TCL!#P>K\?TH`6ST00*"0-\[?P@')`BH8$&0`0RVW4/8
M#V)`!P=Y%.!#@!_%>`$<>!$`@$@`+PD^_R(LP&@;@(P]%O!RJ#*>.38*EA$I
M0`UF36``OC0TTM*!QY_,@NKS9O+4`:9(BQ1PD,`GC)-?$AS]4>"9JJA'##32
M66-`2WM%!B!@DV`BV""#B%EE0>O!4")JV1P0]=:D@6</M)8M&'AN#D6G!!CK
MBR;,`[<O-F[C*V2.T*^,B:![P&#K"YF$#-]0.))L9B$&T!&@/$-A5B$-,FWK
M=KH(UL`W`O#9"\1`%WJ+:P\Q"P;JC`5R?2SX30B`<>%`>#J"_$)I21T&$)QS
MQ""`:.@Y;J><]L7T#`.8`FY+11W\#\+N1B=^+D-I`@:=/+L',D!;QQMBV=7>
M"P-\MY\/`0:FG_\+R"EXX#B*T$,?*Z\]>(UD=AF8@C;FJ;"@A4H,$-!UR"3&
M&HB_#&`B#@'V@F(S<>VC!QM&O<C,,V.P^(4=-J;(X8<M(*!,C[\8P(8`--U0
MP!<D$FF)6EZ$<Q@?XSDYRC`YY@`.D%9BT1^3.QCPQ8!=>ND4F3!$5.5Y4)Q8
M9@X!QL?#%Q.R`)HMM@%`0)UOU44(ES%\`>@(4#I&C)2)#`2#=&!HN%(C3<[Y
M@(:,*K"+H9X4L)P#!#`@2G;H5&F`,`RLAD)$80RZ10"LQ@$`'`$,FD6+2?K`
M!I\E*'4`37&%04`C8;CAF``!K.58-20L&4:D);#:@+&&&GH`+&)NXVC_#$$A
MBP(MC=2H6[2.<-*K(X0=2]B:)!P+0`-0E$H``>J!*\"[FW$V"G%V>;2%&MK2
M4`"-)Z`G$CT[(H`J-P,T<(`"Q8BCE%V>Y.-(52(T^`!43<0+;A@'O)L``O<H
MC`J:G_3P[X[O0/N%"&;)6H*1=CG7A`.;-50`JF`T]*$V3/6GP'/`$F*H<^@5
M&P>K2'LV`,WT`$`R#&KPT""2+Q_)`--K-%H#S,,2(-@([N+'8&<N^%;O-K<@
M,PPWU[X@@`+8J2:-:P)"8+"A'<9@-``(X&I;WVTG&R\!KKZ+T[N=NJKXXHHG
MH$W@A`)F7HL`%'K9,`9[[32*$F_L^>>?^^VAB7_WG'Q`&GH17L5M0;M80@&L
M/@$%R&_)SG@#2!<=`+L+++*X`U<CG@`<<,3A,@G5/E#K"./JPYJ(.7L-D%#P
M>NZ`Z&]^(R$*%BOFD5+=D?#PL<7CGCT2#?AG%:LP%0"("0D#T$D`3Y_OP\W0
@V(_45(WPIO]/PWA`WOZ'D(B@A8`(3*`"%\C`S(0``#L_
`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
