Methanex to Indefinitely Idle New Zealand Methanol Plants Starting Early 2027

Methanex is selling its New Zealand natural gas rights and shutting its local methanol plants indefinitely from Q1 2027.

One of the world's largest methanol producers has decided to wind down its New Zealand operations entirely, citing an irreversible decline in domestic natural gas supply. Methanex Corporation, listed on both the TSX and Nasdaq, announced on September 1, 2026 that it has signed an agreement to sell substantially all of its New Zealand natural gas contractual entitlements — rights that were already set to expire by the end of the decade. The gas sale agreement takes effect in the first quarter of 2027 and runs through the end of the 2020s. Once that deal begins, Methanex will indefinitely idle its New Zealand methanol production facilities. The company said it found no clear pathway to meaningful new natural gas supply in the country, making continued methanol production unviable. Methanex said it will work with employees, contractors, suppliers, customers, and government stakeholders through the transition period. The decision effectively ends what has been a decades-long methanol manufacturing presence in New Zealand, as the company pivots to extracting remaining value from its gas position rather than continuing to produce.

Why it matters

The closure will affect New Zealand-based employees, contractors, and suppliers tied to Methanex's production facilities, and marks a significant reduction in the country's industrial natural gas demand. It also signals broader pressure on industries dependent on New Zealand's declining domestic gas reserves.

What's next

Methanex will engage employees, contractors, suppliers, customers, and government stakeholders during the transition ahead of the Q1 2027 facility idling.

Key facts

• Methanex signed an agreement to sell substantially all of its New Zealand natural gas contractual entitlements
• The gas sale commences in Q1 2027 and runs through the end of the decade, when the entitlements naturally expire
• Methanex will indefinitely idle its New Zealand methanol production facilities starting in Q1 2027
• The company cited continued decline in domestic natural gas availability and no clear pathway to new supply
• Methanex trades on both the Toronto Stock Exchange (TSX: MX) and Nasdaq (MEOH)
• The announcement was made on September 1, 2026

Bias & framing notes

Both sources carry identical official press release text from GlobeNewswire; Source 1 appears truncated mid-sentence while Source 2 is complete. There is no independent journalistic reporting or outside commentary to corroborate or contextualize the company's stated rationale, and no employee, government, or industry voices are included.

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