Methanex Provides Update on New Zealand Operations
Rhea-AI Summary
Methanex (Nasdaq: MEOH, TSX: MX) has entered into an agreement to sell substantially all of its New Zealand natural gas contractual entitlements starting in the first quarter of 2027 through the end of the decade, when those entitlements expire. Citing a continued decline in domestic natural gas availability and no clear path to meaningful new supply, Methanex has concluded that ongoing operations in New Zealand are not sustainable and is seeking to optimize value from its remaining gas position.
As a result, the company expects to indefinitely idle its New Zealand production facilities in the first quarter of 2027 and will coordinate the transition with employees, contractors, suppliers, customers and government stakeholders. Methanex plans to safely operate the plant over the next several months, then safely idle and preserve the facilities to maintain long-term optionality for a potential restart. According to Methanex, it does not expect to incur material cash costs from this decision, and any updates to production or financial guidance will be provided in future quarterly communications.
Positive
- Sale of New Zealand gas entitlements from Q1 2027 through decade-end optimizes remaining gas position
- Company expects no material cash costs from idling New Zealand production facilities
- Facilities will be preserved to retain long-term optionality for a potential future restart
Negative
- New Zealand production facilities expected to be idled indefinitely starting in Q1 2027
- Decision reflects continued decline in New Zealand domestic natural gas availability and lack of new supply pathway
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 20 | Natgasoline refinancing | Positive | +2.4% | Refinancing deferred Natgasoline amortization and improved joint-venture cash flow flexibility. |
| Jul 28 | Second-quarter earnings | Positive | +2.7% | Record North American production and stronger methanol pricing drove quarterly earnings improvement. |
| Jul 15 | Quarterly dividend | Positive | -2.2% | Quarterly cash dividend declaration was followed by a negative 24-hour share reaction. |
| Jun 29 | Trinidad operations update | Negative | -5.4% | Natural gas contract uncertainty led to indefinite Titan plant idling without material cash costs. |
| Apr 30 | Annual meeting results | Neutral | -2.0% | Annual meeting approved directors, auditor reappointment, and executive compensation advisory vote. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Methanex's prior news reactions were generally aligned with event sentiment, although its dividend and annual-meeting announcements diverged.
AI-generated analysis. How Rhea-AI works. Not financial advice.
VANCOUVER, British Columbia, Sept. 01, 2026 (GLOBE NEWSWIRE) -- Methanex Corporation (the “Company” or “Methanex”) (TSX: MX) (Nasdaq: MEOH) announced today that it 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.
FORWARD-LOOKING INFORMATION WARNING
This news release contains forward-looking statements with respect to us and our industry. These statements relate to future events or our future performance. All statements other than statements of historical fact are forward-looking statements. Statements that include the words “expects,” “will,” or other comparable terminology and similar statements of a future or forward-looking nature identify forward-looking statements.
More particularly and without limitation, any statements regarding the following are forward-looking statements:
- expected restart of idled capacity and timing for start-up of the same,
- expected shutdowns (either temporary or permanent) or restarts of existing methanol supply (including our own facilities),
- expected levels, timing and availability of economically priced natural gas supply to each of our plants,
- expected operating costs, including natural gas feedstock costs and logistics costs, and
- expected actions of governments, governmental agencies, gas suppliers, courts, tribunals or other third parties.
We believe that we have a reasonable basis for making such forward-looking statements. The forward-looking statements in this document are based on our experience, our perception of trends, current conditions and expected future developments as well as other factors. Certain material factors or assumptions were applied in drawing the conclusions or making the forecasts or projections that are included in these forward-looking statements, including, without limitation, future expectations and assumptions concerning the following:
- the supply of, demand for and price of methanol, methanol derivatives, natural gas, coal, oil and oil derivatives,
- our ability to procure natural gas feedstock on commercially acceptable terms,
- operating costs, including natural gas feedstock and logistics costs, capital costs, tax rates, cash flows, foreign exchange rates and interest rates, and
- global and regional economic activity (including industrial production levels).
However, forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. The risks and uncertainties primarily include those attendant with producing and marketing methanol and successfully carrying out major capital expenditure projects in various jurisdictions, including, without limitation:
- conditions in the methanol and other industries including fluctuations in the supply, demand and price for methanol and its derivatives, including demand for methanol for energy uses,
- the price of natural gas, coal, oil and oil derivatives,
- our ability to obtain natural gas feedstock on commercially acceptable terms to underpin current operations and future production growth opportunities,
- the ability to carry out corporate initiatives and strategies,
- actions of competitors, suppliers and financial institutions,
- actions of governments and governmental authorities, including, without limitation, implementation of policies or other measures that could impact the supply of or demand for methanol or its derivatives,
- world-wide economic conditions, and
- other risks described in our 2025 Annual Management’s Discussion and Analysis and our Second Quarter 2026 Management’s Discussion and Analysis.
Having in mind these and other factors, investors and other readers are cautioned not to place undue reliance on forward-looking statements. They are not a substitute for the exercise of one’s own due diligence and judgment. The outcomes implied by forward-looking statements may not occur and we do not undertake to update forward-looking statements except as required by applicable securities laws.
Inquiries:
Robert B. Winslow, CFA
Vice President, Investor Relations
Methanex Corporation
604-661-2600 or Toll Free: 1-800-661-8851
www.methanex.com
