Methanex Closure Rekindles Debate Over LNG Terminal

The closure of Methanex, New Zealand's only methanol manufacturer, has reignited debate over the need for an LNG terminal. The Green Party claims the shutdown undermines the case for a liquefied natural gas facility, citing that it consumed over a third of the country's gas supply and 95% of its production is exported.

Finance Minister Nicola Willis attributes the closure to Labour's 2018 ban on offshore oil and gas exploration. She states that the Government had already accounted for the loss of Methanex in their decision-making process and would still face a dry year risk of shortage during times when there isn't enough water in the hydro-lakes.

The new $1 billion import facility to be built in Taranaki could open as early as next year, saving millions in power bills. However, households will have to pay a levy ($2-4 per megawatt-hour) and the Government insists that this will be offset by long-term savings.