Chemical
Methanex to idle New Zealand plants as gas shortage threatens long-term operations
Methanex said the continued decline in gas availability, coupled with the absence of a clear path to meaningful new supply, has made its New Zealand operations unsustainable
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By ICN Bureau | September 03, 2026
Methanex Corporation will indefinitely idle its New Zealand methanol production facilities in the first quarter of 2027, citing a worsening shortage of domestic natural gas and a lack of new supply prospects.
The company said it has agreed to sell substantially all of its remaining New Zealand natural gas contractual entitlements from the first quarter of 2027 through the end of the decade, when those entitlements expire.
Methanex said the continued decline in gas availability, coupled with the absence of a clear path to meaningful new supply, has made its New Zealand operations unsustainable.
The move will effectively bring an end to more than four decades of production in the country, although Methanex said it will preserve the facilities in case market conditions eventually support a restart.
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 said it expects no material cash costs from the decision. The company will work with employees, contractors, suppliers, customers and government stakeholders as it winds down operations.
