Methanex Closes NZ Plant Due to Gas Supply Crunch

New Zealand's largest gas user Methanex is to close its plant and sell off its gas contracts. The Canadian-owned company cited a lack of natural gas and a clear pathway to new supplies as reasons for the closure.

Methanex has been responsible for taking around 30-40% of all of New Zealand's natural gas production, but recent years have seen rapid decline in production with little new supply coming on board. The company employs around 200 people and will work closely with employees, contractors, suppliers, customers, and government stakeholders during the transition period.

New Plymouth Mayor Max Brough said the announcement was disappointing but not unexpected, noting that Methanex had no continuity of supply and didn't have enough gas coming in. He added that the closure would free up gas for other users but prices may increase as a result.