Methanex Corporation (MEOH) has announced plans to sell nearly all of its New Zealand natural gas contractual entitlements starting in the first quarter of 2027, due to a significant decline in domestic natural gas availability. The agreement will last until the entitlements expire at the end of 2028. This decision is part of the company’s strategic response to the prolonged decrease in gas supply without a clear pathway for new sources.
The facilities in New Zealand have been crucial to Methanex’s global production for over four decades. The company aims to transition smoothly by collaborating with employees, suppliers, and stakeholders, while also preparing to safely idle its New Zealand operations and preserve assets for potential future use, should gas supply conditions improve. Methanex anticipates that this decision will have minimal immediate cash flow implications but will significantly impact its production capacity.
In the past year, shares of MEOH have increased by 70.3%, significantly outperforming the industry’s growth of 3.2%.
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