Methanex Abandons NZ Gas Supply Amid Declining Reserves

Methanex Corporation, the world's largest methanol supplier, has announced it will sell nearly all its contractual rights to natural gas in New Zealand and idle its plants. The decision affects two production sites in the Taranaki region that have been operational since the early 1980s.

The company cites a continuing decline in domestic natural gas availability as the reason for this move. Methanex management, led by President and CEO Rich Sumner, notes that there is no clear prospect for new, significant gas supply in the New Zealand market.

The sale of gas rights allows Methanex to continue operating its plants for several months before idling them, preserving the assets with a view to possible restart if future circumstances allow. The company expects minimal cash costs related to this decision.