Methanex Closes Taranaki Operations Amid Gas Supply Concerns
Methanex, New Zealand's only methanol manufacturer, has announced it will close its operations in Taranaki due to declining domestic natural gas availability and a lack of new supply. The company expects to indefinitely idle its production facilities in the first quarter of 2027.
About 95% of Methanex's production is exported to Asia-Pacific customers, making it New Zealand's largest user of natural gas. The company has sold its natural gas contractual entitlements and will focus on safely operating the plant over the next several months before idling and preserving the facility for potential future use.
The closure has sparked debate about the role of an LNG import terminal, with National Party Energy Minister Simeon Brown blaming Labour's ban on oil and gas exploration for the decline in natural gas availability. However, Labour leader Chris Hipkins argued that the ban was temporary and did not change the fact that New Zealand had not found significant new gas supplies in over 20 years.