Methanex Corporation (Nasdaq: MEOH) said it failed to reach a new natural gas supply agreement for its Titan methanol plant in Trinidad and Tobago and will indefinitely idle the facility, which has a capacity of 860,000 tonnes per year.

Titan's existing natural gas contract expires in the third quarter of 2026. The Vancouver-based company said it will begin a preservation process at the plant to allow for a potential future restart if conditions change.

The Atlas methanol plant, a separate joint venture in which Methanex holds a 63.1% economic interest, remains indefinitely idled in a preserved state.

President and CEO Rich Sumner said the decision reflects "structurally tight gas supply and demand balances in Trinidad and Tobago" that have made operations "commercially unviable." Sumner added that the company engaged with the Government of Trinidad and Tobago and the National Gas Company of Trinidad and Tobago ahead of the decision.

Methanex said Titan is not currently contributing to the company's Adjusted EBITDA or Adjusted Free Cash Flow, and it does not expect to incur material cash costs as a result of the idling. Any updates to production or financial guidance are expected to be released alongside the company's second-quarter financial results, scheduled for July 28, 2026.