Methanex Suspends Trinidad Natural Gas Contract
Methanex announced that it has been unable to agree to a new natural gas contract for its Titan methanol plant in Trinidad and Tobago and, as a result, will begin the process of indefinitely idling the facility. Titan's existing natural gas contract expires in the third quarter of 2026. Methanex will undertake a preservation process at the Titan plant to provide optionality for a future restart should conditions materially improve. The Atlas methanol plant, a joint venture in which Methanex holds a 63.1% economic interest, remains indefinitely idled in a preserved state. Rich Sumner, President and CEO, Methanex Corporation, stated, "We have a long history in Trinidad and Tobago with an outstanding organization that has played an important role in our company's history. This difficult decision reflects our focus on preserving long-term shareholder value in a challenging environment where the structurally tight gas supply and demand balances in Trinidad and Tobago are making operations commercially unviable. Ahead of this decision, we engaged extensively with the Government of Trinidad and Tobago and the National Gas Company of Trinidad and Tobago, and we recognize and appreciate their ongoing efforts to address the country's gas supply challenges. We will monitor future developments closely, with a view to reassessing conditions and our position over the coming years. We are now focused on supporting our team members during this challenging period and safely idling and preserving the facility." Titan is not currently contributing to the company's adjusted EBITDA and adjusted free cash flow. Methanex does not expect to incur material cash costs as a result of this decision and any updates to production or financial guidance will be released with Methanex's regular second quarter financial communications scheduled for July 28.
