Methanex to Idle New Zealand Methanol Plant Amid Declining Gas Supply

Methanex will idle its Taranaki methanol facilities from the first quarter of 2027, ending output at the end of February 2027 while preserving the plant for a possible future restart. The company will work with employees, contractors, suppliers, customers and government stakeholders during the transition.

Methanex to close NZ operations

Methanex is New Zealand’s sole methanol producer and the largest domestic consumer of natural gas, drawing roughly 40 % of the nation’s supply from the Maui field, which is slated to cease production by the end of 2026. Recent revisions show a sharp downward trend in national gas reserves, increasing uncertainty about future supply.

Methanex exit forces fast-track of NZ gas rules

• Natural-gas reserves fell 27 % by 1 January 2025 versus the previous year (Gas Industry Company’s 2026 Gas Supply and Demand Study).

Methanex exit forces fast-track of NZ gas rules

• Net gas production in January 2026 was 7.47 PJ, a 14 % decline from January 2025.

Methanex exit forces fast-track of NZ gas rules

• Methanex’s New Zealand output dropped from 158,000 t in Q1 2026 to 46,000 t in Q2 2026, reflecting reduced gas availability.

Methanex exit forces fast-track of NZ gas rules

• Genesis Energy secured an additional 4 PJ of third-party gas (Mar 2027 – Dec 2029) and 8.6 PJ from Beach Energy’s Kupe supply (Jan 2027 – Dec 2028).

The New Zealand Herald

Methanex says it does not expect material cash costs from the shutdown and will monitor upstream activity for any restart opportunity.

The New Zealand Herald

Energy Minister Simeon Brown noted that the Gas (Market Transparency) Amendment Act 2026, effective 6 June 2026, gives the Ministry of Business, Innovation and Employment and the Gas Industry Company powers to compel disclosure of reserves, production and demand data, addressing the “fragmented, incomplete and outdated” information that has hampered market confidence.

Methanex exit forces fast-track of NZ gas rules

Methanex’s demand-response capacity—up to 95 TJ per day—has helped balance the grid during dry years and peak demand. Its exit removes a major “shock absorber,” leaving the Ahuroa storage facility (? 65 TJ per day) as the primary balancing resource, which is smaller and less flexible. Analysts warn this could lead to sharper electricity price spikes during stress periods.

Methanex exit forces fast-track of NZ gas rules

The government has accelerated interim gas-market transparency rules and allocated a $200 million Gas Security Fund and a Gas Transition Loan Guarantee Scheme to cushion industrial users, though these measures do not replace lost gas supply.

Methanex exit forces fast-track of NZ gas rules

• Interim transparency requirements are being fast-tracked to take effect before the full regulations expected in early 2027.

Methanex exit forces fast-track of NZ gas rules

• Genesis Energy’s newly secured gas contracts will be operational from March 2027, supporting retail demand and generation-mix decisions through 2029.

The New Zealand Herald

• Methanex will preserve the Taranaki plant, maintaining “long-term optionality” should gas availability improve.

The New Zealand Herald

• “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 chief

Methanex to close NZ operations