Methanex Corporation has announced it will temporarily halt its manufacturing operations in New Zealand until the end of October 2024. This decision follows new short-term commercial agreements to supply its contracted natural gas to the New Zealand electricity market. The arrangements are anticipated to enhance Methanex's earnings for Q3 and Q4 2024, with after-tax proceeds expected to substantially surpass the margin lost from reduced methanol production in New Zealand. The agreements guarantee Methanex a base price per unit of gas delivered, with additional value contingent on fluctuating electricity prices during the contract period.

Rich Sumner, President and CEO, highlighted the severe energy challenges currently affecting New Zealand, which stem from high seasonal demand coupled with low hydroelectric output and reduced gas supply for 2024. He noted that these conditions have strained the country's energy balance. Sumner stressed the importance of the company’s efforts in collaborating closely with energy providers, other gas consumers, and the New Zealand government to address these issues. The recent agreements are seen as a pivotal step in supporting the country's energy sector. By strategically utilizing their global supply chain, the company aims to ensure reliable methanol supplies. With gas contracts secured through 2029, the company is committed to enhancing New Zealand's energy stability and meeting evolving demands.

In conclusion, Methanex's strategic shift to supply natural gas to the New Zealand electricity market while idling its local methanol production is set to enhance its financial performance. This move, supported by favorable commercial arrangements, is anticipated to result in substantial after-tax gains, compensating for the production losses and positioning Methanex for improved earnings in the latter half of 2024.

Methanex Corporation, headquartered in Vancouver, is a publicly traded company and holds the distinction of being the largest global supplier of methanol. The company serves major international markets, leveraging its extensive production capabilities and strategic positioning to meet the global demand for methanol, a key industrial chemical. Methanex's prominence in the industry is underscored by its comprehensive supply network and its role as a leading player in the methanol market.

Methanex, is a global leader in methanol production and supply and serves major markets across North America, Asia Pacific, Europe, and South America. With production facilities strategically located in Canada, Chile, Egypt, New Zealand, Trinidad and Tobago, and the United States, Methanex leverages a robust global supply chain, including terminals, storage facilities, and the world's largest dedicated methanol tanker fleet, to deliver reliable and efficient methanol solutions to its customers worldwide.