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Methanex Winds Down Ops in New Zealand Over Domestic Natgas Shortage

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Methanex (MEOH), the world's largest methanol supplier, will sell almost all of its New Zealand contractual natural gas entitlements from the first quarter of next year and until their expiration at the end of the decade, the Canadian company said in a statement on Tuesday.

It said that it has become unsustainable to operate in New Zealand after more than four decades due to the decline in domestic natural gas supplies and that taking this step would enable it to optimize value from what will remain of its exposure to New Zealand gas.

The company will idle its production assets from Q1, 2027 and said it will work closely with employees, contractors, suppliers, customers and the government in the interim.

CEO Rich Sumner said the company had been helping to mitigate the country's declining natural gas output for several years, matching operational rates to available supply and procuring foreign supplies for New Zealand.

The company said it did not expect to incur material cash costs as a result of the decision.

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