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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Reflecting persistent natural gas supply challenges in Trinidad and Tobago, Methanex Corporation (TSX: MX, Nasdaq: MEOH) announced it will begin the process of indefinitely idling its Titan methanol plant. According to a press release, the decision follows the company's failure to agree on a new natural gas contract, with the current contract expiring in Q3 2026. The Atlas methanol plant, a joint venture in which Methanex holds a 63.1% economic interest, was already idled in a preserved state.
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Sign InThis shutdown adds to Methanex's production constraints in Trinidad, where its three plants (Titan, Atlas, and Methanex T&T) collectively contributed about 2 million tonnes per year. Per market data, MEOH closed at $48.12 on June 26, while MX closed at C$4.65, with minimal changes from prior sessions. The developments come amid volatility in global methanol prices due to weak Chinese demand and rising North American output.
At the June 26 close, MEOH traded in a range of $47.71 to $48.63, suggesting limited volatility despite the negative news. Going forward, markets will focus on Methanex's ability to restart Atlas or secure new gas contracts. The Q2 earnings report, due in July, may provide further clarity on the production impact. The methanol sector remains under pressure as margins in the US narrow.