Methanex Corporation has entered into an agreement to sell substantially all of its New Zealand natural gas contractual entitlements commencing in the first quarter of 2027 and continuing through the end of the decade when such entitlements expire. Given the continued decline in domestic natural gas availability and the lack of a clear pathway to meaningful new supply, Methanex has determined that continued operations in New Zealand are not sustainable and as such has taken steps to optimize value from its remaining New Zealand gas position. As a result of this agreement, the Company expects to indefinitely idle its New Zealand production facilities during the first quarter of 2027 and will work closely with employees, contractors, suppliers, customers and government stakeholders during this transition period.
Rich Sumner, President and CEO, Methanex Corporation, stated, 'Our New Zealand production facilities have operated for more than four decades and our people have made significant contributions to the Company’s global operations and the New Zealand energy sector. However, we have also been preparing for the eventuality of this day given the declining gas availability in the country. For several years we have actively contributed to managing New Zealand’s declining gas environment by matching our operating rates to available supply and, when appropriate, selling gas into the New Zealand energy markets. We are now focused on supporting our team members during this transition period, safely operating the plant over the next several months and then safely idling and preserving the facility for long-term optionality should future circumstances support a restart of operations.'
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.
ABOUT METHANEX
Methanex is a Vancouver-based, publicly traded company and is the world’s largest supplier of methanol globally. Methanex shares are listed for trading on the Toronto Stock Exchange in Canada under the trading symbol “MX” and on the Nasdaq Stock Market in the United States under the trading symbol “MEOH”. Methanex can be visited online at www.methanex.com.
Source: Methanex
