Methanex Idles NZ Plants Amid Declining Gas Availability
Methanex Corporation has announced that it will idle its New Zealand production facilities indefinitely starting from the first quarter of 2027. The decision comes due to a continued decline in domestic natural gas availability and the lack of a clear pathway to new supply, according to Rich Sumner, President and CEO of Methanex Corporation.
The Company has been preparing for this eventuality by matching its operating rates to available supply and selling gas into the New Zealand energy markets. However, with the entitlements set to expire at the end of the decade, Methanex has determined that continued operations in New Zealand are not sustainable.
Methanex does not expect to incur material cash costs as a result of this decision, and employees will be supported during the transition period. The Company will work closely with stakeholders, including contractors, suppliers, customers, and government officials, to ensure a smooth transition.