Methanex Closes Taranaki Plant Due to Declining Gas Supply

Methanex, New Zealand's largest gas user, has announced that it will close its Taranaki plant after four decades of operation. The Canada-based firm cited 'declining' natural gas supply as the reason for the closure. In a statement on its website, Methanex said it had agreed to sell substantially all of its New Zealand natural gas contractual entitlements starting in the first quarter of 2027 and continuing through the end of the decade when such entitlements expire.

The company expects to 'indefinitely idle' its production facilities at Motonui, north of Waitara, during the first quarter of next year. Methanex employs around 300 people, with about 95% of production exported to customers in the Asia Pacific region. It uses 40% of New Zealand's gas.

Methanex president and chief executive Rich Sumner said the New Zealand operations had made 'significant contributions' to the company's global operations and the New Zealand energy sector. However, he added that the firm has been preparing for this day given the declining gas availability in the country.