The methanol producer, Methanex, has announced it has signed agreements with gas suppliers that are expected to enable it to operate at over half its capacity until 2029.
Using 41% of New Zealand’s gas supply in 2017, the Ministry of Business, Innovation and Employment (MBIE) had expected New Zealand’s depleting gas reserves, coupled with the oil and gas exploration ban, to see Methanex leave the market by 2026.
In addition to the economic impacts of this, particularly in Taranaki, MBIE was concerned that this would negatively impact the environment as methanol produced in New Zealand using gas, would likely be replaced by methanol produced in China using coal.
