One of the world's largest methanol producers has announced the suspension of operations at its plant in Trinidad and Tobago due to disagreements over the price of natural gas used in methanol production.

Methanex stated that it was unable to reach a new natural gas supply agreement with the government of Trinidad and Tobago and the National Gas Company (NGC). As a result, the Titan plant, which has an annual capacity of 860,000 tons of methanol, will be shut down for an indefinite period.

The current gas supply contract for the Titan plant expires in the third quarter of 2026. The main sticking point in negotiations between Methanex and NGC was the price of gas. Methanex requested a price significantly lower than the terms of the current contract, as well as below NGC’s acquisition cost and the rates applied to other industrial and commercial clients, including companies within the NGC group. The company emphasized that lowering the gas price is the only economically viable way to keep the plant running.

NGC expressed its willingness to continue dialogue with Methanex should opportunities arise to reach a commercially sustainable agreement that takes into account the interests of both parties.

Methanex plans to mothball the Titan plant so that it can be restarted if conditions improve. Another methanol plant, Atlas, in which Methanex holds a 63.1% stake, is already in a mothballed state.

The company noted that the decision to suspend operations at Titan is linked to the limited balance between gas supply and demand in Trinidad and Tobago, making further operation of the plant economically unfeasible. Currently, Methanex is focused on supporting its employees during this period and ensuring the safe preservation and maintenance of the facility.