Methanex to indefinitely idle NZ plant in 2027, Genesis Energy secures 11.4PJ of gas through to 2029
Methanol producer Methanex plans to indefinitely idle its Taranaki plant in New Zealand by 2027 due to declining domestic gas supplies. The company will sell its remaining gas entitlements, impacting its local operations and workforce.
Why it matters
The closure highlights the challenges of energy-intensive industries in regions facing natural gas shortages, impacting both the local economy and energy market dynamics.
Methanol producer and major gas user Methanex says it will sell its New Zealand gas entitlements and “indefinitely idle” its plant in Taranaki after 40 years of operation.
Methanex said it had struck a deal to sell substantially all of its New Zealand natural gas contractual entitlements, starting in the first quarter of 2027 and continuing through to the end of the decade when the entitlements expire.
The company employs about 160 people in New Zealand.
It is New Zealand’s only methanol manufacturer. About 95% of its production is exported to customers in the Asia Pacific region.
The company consumes about 37% of New Zealand’s gas production.
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