One of Methanex's methanol plants: in New Zealand
Methanex restarts New Zealand plant
The world's biggest methanol producer Methanex Corporation has resumed production at its 900,000 tonne New Zealand plant.
The Canadian producer said the Motunui plant would operate at least until the end of the year, replacing its nearby 500,000 tonne Waitara plant which will now close, to take advantage of extra gas supplies and high energy prices.
Methanex said in May it would spend up to NZ$70 million (US$42 million) to reopen the plant, which was shut down in 2004.
New Zealand is currently experiencing a slight oversupply of gas due to the near-shore Pohokura gas-condensate field coming onstream and more market-priced Maui right of first refusal gas becoming available, as well as gas from the smaller Turangi and Kowhai onshore fields.
With the offshore Kupe gas field scheduled to come onstream in mid-2009, this oversupply could continue until 2014, though New Zealand will again be facing a gas supply “gap” from about 2011 if Methanex runs two methanol units.
Both plants are located in the Taranaki region, on the west coast of the North Island, where New Zealand's commercial oil, gas and petrochemical industry is based. They are regarded as flexible production facilities and used according to demand and gas supplies.