Methanex to Idle New Zealand Production Facilities Amid Gas Shortages

Methanex Corporation has announced that it will sell its New Zealand natural gas contractual entitlements, which are set to expire at the end of the decade. The company cited a continued decline in domestic natural gas availability and the lack of a clear pathway to new supply as reasons for this decision. As a result, Methanex expects to indefinitely idle its New Zealand production facilities in the first quarter of 2027.

Rich Sumner, President and CEO of Methanex Corporation, stated that the company has been preparing for this eventuality due to the declining gas availability in New Zealand. He emphasized the importance of safely operating the plant over the next several months and then safely idling and preserving the facility for long-term optionality.

Methanex does not expect to incur material cash costs as a result of this decision, and any required updates to production or financial guidance will be released with Methanex’s ongoing quarterly financial communications.