Methanex to Idle NZ Plants Amid Declining Gas Supply

Methanex Corporation has announced that it will idle its New Zealand production facilities indefinitely starting in the first quarter of 2027. 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.

The idling of these facilities is expected to occur after Methanex sells substantially all of its New Zealand natural gas contractual entitlements, which will begin in Q1 2027 and continue through the end of the decade when those entitlements expire.

Methanex does not expect to incur material cash costs from this decision. The company plans to safely operate the plant over the next several months, then safely idle and preserve the facilities for potential future restart.