Methanex Closes New Zealand Plant Amid Gas Supply Woes
Methanex, New Zealand's largest gas user, has announced it will effectively close its plant and sell off its gas contracts due to a lack of natural gas and no clear pathway to new supplies.
The Canadian-owned company employs around 200 people and has been responsible for taking up to 40% of all of New Zealand's natural gas production. However, the country's natural gas production has declined rapidly in recent years with little new supply coming on board.
Methanex will sell its gas contractual entitlements starting from the first quarter of next year and then safely idle its facility for future optionality.
New Plymouth Mayor Max Brough expressed disappointment but not surprise over the decision, stating that Methanex had been subsidized by keeping prices down for other users. He also acknowledged that many employees would struggle to find similar work in New Zealand.