Methanex Corporation has announced that it has been unable to agree to a new natural gas contract for its Titan methanol plant in Trinidad and Tobago (860,000 tonnes per year capacity) 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. According to the company, 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. The Atlas facility has a capacity of 1,650,000 tonnes of methanol per year. Together, the facilities have the ability to produce approximately 2,500,000 tonnes of methanol, which could have been exported to earn foreign currency.
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.”
The Energy Chamber of Trinidad and Tobago has taken note of this announcement. Methanex has been a valued long-term investor in this country, and both the Titan and Atlas plants have made a meaningful contribution to T&T’s export earnings and the vitality of the Point Lisas Industrial Estate. The Chamber acknowledges that Methanex engaged extensively with the Government of Trinidad and Tobago and the National Gas Company ahead of this decision, and we recognise the genuine efforts of all parties to seek a workable path forward.
The Chamber looks forward to continued engagement between all parties with a view to creating the conditions that would allow these facilities to resume operations. We note that Methanex has preserved both plants in a state that provides optionality for a future restart, and we welcome that commitment. The Energy Chamber remains available to support any constructive process that advances the long-term viability of the petrochemical sector in Trinidad and Tobago.
This news follows the shutdown of operations at the Nutrien facilities, where ammonia and urea were produced and exported.
The shutdown of these facilities has weakened Trinidad and Tobago’s exports of these products and will have an impact on the country’s foreign exchange earnings. Beyond the direct workforce at these plants, the Chamber is mindful that a significant number of its member companies, local contractors and service providers who support operations across the Point Lisas Industrial Estate, will also feel the effects of these closures.
The Energy Chamber remains committed to working collaboratively to ensure the long-term development of a competitive and sustainable energy sector in Trinidad and Tobago.