{
  "id": 5011177,
  "title": "Methanex closure to have ripple effect across the region",
  "url": "https://urgent.news/2026/09/02/methanex-closure-to-have-ripple-effect-across-the-region",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-02T04:01:35.000Z",
  "source": {
    "name": "RNZ Business",
    "slug": "rnz-business",
    "url": "https://www.rnz.co.nz/news/business/1224412/methanex-closure-to-have-ripple-effect-across-the-region"
  },
  "original_language": "en",
  "account": "New Zealand's largest gas user, Methanex, plans to shut down its operations in the country and sell off its natural gas contracts, according to the Canadian-owned company. Methanex has determined that its plant in New Plymouth is no longer sustainable due to a lack of natural gas and a lack of clear pathways to new supplies. The company has entered into an agreement to sell its New Zealand gas contractual entitlements, starting in the first quarter of next year. It intends to safely idle and preserve the facility for potential future use, should circumstances permit a restart of operations.\n\nMethanex employs around 200 people at the plant, excluding contractors and suppliers. The company's president and CEO, Rich Sumner, stated that the company has been preparing for this eventuality due to declining gas availability in the country. He emphasized that the company is focused on supporting its team members during the transition period and safely operating the plant over the next several months.\n\nNew Plymouth Mayor Max Brough expressed disappointment with the announcement, stating that the gas shortage in the country will free up Methanex's gas for other users, but the price will likely increase. He also mentioned that many people who lose their jobs as a result of the closure will struggle to find similar work, as there are no alternative roles in New Zealand. However, Brough remains optimistic about future gas exploration projects in the region.\n\nThe Taranaki Chamber of Commerce described the closure as having a widespread impact on the local economy, affecting various sectors such as hospitality and visitor industries. Chamber CEO Arun Chaudhari acknowledged that the plant will be idled rather than completely decommissioned, providing a glimmer of hope for potential future commercial methanol manufacturing. He also expressed optimism about new gas exploration permits that could uncover sufficient gas supplies to allow Methanex to be rebooted in the future.\n\nPort Taranaki, the company's largest customer, expressed sadness over the closure of its New Zealand operations, highlighting the company's long-standing and significant contribution to the Taranaki economy. Energy Minister Simeon Brown criticized the former Labour government for banning oil and gas exploration, which he claimed was responsible for the current gas shortage and the decline in jobs in Taranaki. The Green Party expressed disappointment, arguing that the closure weakens the case for the government's proposed liquefied natural gas (LNG) import facility.",
  "summary": "New Zealand’s largest gas user says operations are no longer sustainable due to a lack of natural gas.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}