Methanex Corporation (Nasdaq: MEOH) announced it has agreed to sell substantially all of its New Zealand natural gas contractual entitlements, beginning in the first quarter of 2027 and continuing through the end of the decade when those entitlements expire.

The Vancouver-based methanol producer said it plans to indefinitely idle its New Zealand production facilities in the first quarter of 2027, citing a continued decline in domestic natural gas availability and the absence of a clear pathway to meaningful new supply.

The company said it does not expect to incur material cash costs as a result of the decision. Any updates to production or financial guidance will be released through its regular quarterly financial communications.

Rich Sumner, President and CEO, said the company intends to safely operate the plant over the coming months before idling and preserving the facility for potential future use. "We are now focused on supporting our team members during this transition period, safely operating the plant over the next several months and then safely idling and preserving the facility for long-term optionality should future circumstances support a restart of operations," Sumner said.

Methanex said it will work with employees, contractors, suppliers, customers, and government stakeholders during the transition. The New Zealand facilities have been in operation for more than four decades, according to the company.