Methanex plans to idle New Zealand plants as gas supply dwindles

Methanex

02/09/2026 02:35

Sept 1 (Reuters) - Vancouver-based methanol producer Methanex Corporation MX.TO said on Tuesday it would sell "substantially" all of its New Zealand natural gas contractual entitlements from the first quarter of 2027.

Here are some details:
The entitlements include contracts that start in the first quarter of 2027 and run through the end of the decade, when they are due to expire.
The company said continued operations in New Zealand were no longer sustainable, citing an ongoing decline in domestic natural gas availability and the lack of a clear pathway to significant new supply.
Methanex expects to indefinitely idle its New Zealand production facilities in the first quarter of 2027 and said it would work closely with employees, contractors, suppliers, customers and government stakeholders throughout the transition. 
The company has been preparing for the eventuality of this day given the declining gas availability in New Zealand, President and CEO Rich Sumner said.
Its New Zealand production facilities, which have operated for more than four decades, have made significant contributions made to the firm's global operations and the country's energy sector, Sumner added. 
Methanex does not expect to incur material cash costs as a result of the decision.

 (Reporting by Anjali Singh in Bengaluru; Editing by Sherry Jacob-Phillips)
 ((anjali.singh2@thomsonreuters.com;))