Methanex to effectively close and sell off gas contracts
N ew Zealand's largest gas user says operations are no longer sustainable due to a lack of natural gas.
New Zealand's largest gas consumer, Methanex, is set to effectively cease operations at its New Zealand plant and offload its natural gas contracts. The company attributes this decision to the scarcity of natural gas and a clear path to new supply, rendering its local operations unsustainable. Methanex, a Canadian-owned firm, has reached an agreement to transfer all of its New Zealand natural gas contractual entitlements beginning in the first quarter of the following year.
The company plans to idle and preserve the facility for potential future restart should circumstances permit.
Historically, Methanex has utilized around 30 to 40 percent of all New Zealand's natural gas production. However, the country's natural gas production has been steadily declining in recent years, with limited new supply entering the market. Currently employing approximately 200 individuals, excluding contractors and suppliers, Methanex is actively working in collaboration with employees, contractors, suppliers, customers, and government stakeholders throughout the transition period.
Rich Sumner, the President and CEO of Methanex Corporation, disclosed that the company had been preparing for this situation due to dwindling gas availability in New Zealand. He added that the firm is currently concentrating on supporting its team members during the transition and ensuring the safe operation of the plant over the subsequent months.
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