Methanex Shuts Down Taranaki Plant Amid Declining Gas Reserves

Methanex has announced it will be shutting down its Taranaki plant, which has been in operation for 40 years. The company cites a continued decline in domestic natural gas as the reason for this decision.

Methanex says it has struck a deal to sell most of its natural gas entitlements under current contracts, starting from next year's first quarter. This means that while some gas will be freed up for use elsewhere, New Zealand is losing a major manufacturer and exporter in the process.

Carnegie's Ryan Bridge comments on the situation, saying that Methanex stepping back 'is a bit like a snake eating its own tail.' He notes that we are gaining access to some gas but also losing a significant industry player.