By Stephen Nakrosis
Methanex said it will indefinitely idle its Titan methanol plant in Trinidad and Tobago, after the company was unable to agree to a new natural gas contract for the facility.
The company said its existing natural gas contract expires in the third quarter.
The company also said it would undertake a preservation process at the 875,000 annual operating capacity facility to provide for a future restart should conditions improve.
Methanex said Atlas methanol plant in Trinidad and Tobago, in which it holds a 61.3% economic interest via a joint venture, remains indefinitely idled in a preserved state.
Rich Sumner, Methanex president and chief executive officer, said the company engaged extensively with the government of Trinidad and Tobago and the National Gas Company of Trinidad and Tobago before making its decision. Sumner added Methanex is now focused on supporting team members and safely idling and preserving the facility.
Methanex said it doesn't expect to incur material cash costs as a result of the decision.
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com