Methanex to effectively close and sell off gas contracts

New Zealand's largest gas user Methanex is to effectively close its plant and sell off its gas contracts.Methanex said a lack of natural gas and a clear pathway to new supplies meant operations in New Zealand were no longer sustainable.The Canadian-owned company said it had now entered into an agreement to sell all of its New Zealand natural gas contractual entitlements, commencing in the first quarter of next year.It said it then planned to safely idle and preserve the facility for long-term optionality, should future circumstances support a restart of operations.The company has in the past been responsible for taking around 30 to 40 percent of all of New Zealand's natural gas production.ln recent years the country's natural gas production has declined rapidly with little new supply coming on board.The company, which employs around 200 people, not including contractors and suppliers, said it would work closely with employees, contractors, suppliers, customers, and government stakeholders during the transition period.Rich Sumner, president and CEO of Methanex Corporation, said the company had been preparing for this eventuality, given declining gas availability in the country.Sumner said the company was now focused on supporting its team members during the transition period, and safely operating the plant over the next several months.