Methanex Closure to Boost Gas Supply, Lower Prices for Industry
Methanex, New Zealand's largest gas consumer, has announced it will close its operations next year and sell off its gas contracts. The Canadian multinational used nearly half of the country's total natural gas supply.
The departure of Methanex is expected to release a significant amount of gas into the market, which has struggled in recent years due to supply constraints.
Genesis Energy has picked up major gas contracts that run from March next year through to December 2029. Ben Gerritsen, general manager of customer and regulation at Clarus, the company that runs the North Island's gas transmission network, said this is a 'big shift' for the local Taranaki economy.
Gerritsen explained that Methanex's business model globally is to operate in countries with plentiful gas and export it as methanol. With declining gas production in New Zealand, this decision is not surprising.