Methanex Shuts Down Trinidad & Tobago Plant Over Gas Price Dispute

Methanex, one of the world's largest methanol producers, is indefinitely idling its Titan methanol plant in Trinidad & Tobago after failing to agree on natural gas supply terms with the government and the National Gas Company (NGC). The Titan facility, which has an annual production capacity of 860,000 tonnes of methanol, will be preserved to allow for a potential restart if conditions improve. The existing gas contract for Titan is set to expire in the third quarter of 2026.

Key Points of the Dispute

The core issue revolves around the price of natural gas. NGC stated that Methanex requested a gas price significantly lower than the expiring contract's rate, which was also below NGC's acquisition cost and the rates charged to its Light Industrial and Commercial customers, as well as other NGC Group companies. Methanex indicated that a reduced gas price was the only economical way to continue operations. NGC remains open to further dialogue if a commercially sustainable arrangement can be reached that reflects both parties' interests.

Broader Context and Company Response

This decision follows the earlier idling of the Atlas methanol plant, in which Methanex holds a 63.1% stake, which is already preserved. Methanex CEO Rich Sumner explained that the move is driven by a focus on preserving long-term shareholder value in a challenging environment, where structurally tight gas supply and demand balances in Trinidad and Tobago have made operations commercially unviable. The company engaged extensively with the government and NGC before the decision and is now focused on supporting team members and safely idling and preserving the facility.