Canada’s Methanex Corporation says that it will close its Titan plant on the Point Lisas Industrial Estate indefinitely, after failing to clinch a new natural gas supply contract with the wholly state-owned National Gas Company (NGC).
In a news release issued on Monday, Methanex said Titan’s existing natural gas contract expires in three months (September), at which time the plant will be put into preservation mode “to provide optionality for a future restart should conditions materially improve.”
As a result, a report in the Trinidad Guardian said that about 140 permanent employees would likely be affected by the company’s decision. This does not include contractors and service suppliers.
Titan is the second of Methanex’s two methanol plants on the Estate to go into idle mode, the report said.
In the news release, president and CEO of Methanex Corporation, Rich Sumner, said, “We have a long history in T&T with an outstanding organisation 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 T&T are making operations commercially unviable.
“Ahead of this decision, we engaged extensively with the Government of T&T and the National Gas Company, and we recognise 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.”
The company noted that Methanex does not expect to incur material cash costs as a result of the decision and any updates to production or financial guidance will be released with Methanex’s regular second quarter financial communications scheduled for July 28.
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