The country's largest gas user Methanex has announced it will close its Taranaki plant after four decades of operation, saying New Zealand's declining natural gas supply has made continuing operations unsustainable.
In a statement on its website, the Canada-based firm announced it had agreed to sell substantially all of its New Zealand natural gas contractual entitlements commencing in the first quarter of 2027 and continuing through the end of the decade when such entitlements expire.
It also said Methanex expected to "indefinitely idle" its production facilities at Motonui, north of Waitara, during the first quarter of next year.
The country's sole methanol manufacturer employs around 300 people, with about 95% of production exported to customers in the Asia Pacific region. It uses 40% of New Zealand's gas.
Methanex president and chief executive Rich Sumner said the New Zealand operations had made "significant contributions to the Company’s global operations and the New Zealand energy sector".
"However, we have also been preparing for the eventuality of this day given the declining gas availability in the country."
Sumner said Methanex would focus on operating the plant over the coming months and supporting staff before "safely idling and preserving the facility for long-term optionality should future circumstances support a restart of operations”.
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