In New Zealand, NRZ reported that the country’s biggest gas user Methanex is temporarily shutting its New Zealand methanol plants and selling the gas to power companies.
The report noted that the firm would shut its Taranaki plant until the end of October after agreeing to sell the gas to Contact Energy and Genesis Energy.
Methanex chief executive Rich Sumner said the deal would help ensure electricity supplies during the current period of low gas reserves and hydro lakes.
“We have been working closely with energy providers, other gas users and the government of New Zealand on how we can be part of the solution. We believe these agreements will play an important role to support the energy sector,” said Sumner.
Methanex would sell gas to the power companies over the next three months and expected to earn more from the arrangement than the methanol income lost.
“These commercial arrangements are expected to positively impact Methanex’s Q3 and Q4 2024 earnings with after-tax proceeds expected to meaningfully exceed the margin lost on New Zealand methanol production delivered to customers,” the company said.
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Tags: Methanex, methanol, New Zealand
Category: Fuels
